Ethereum (ETH), the second-largest cryptocurrency by market cap, may be headed for a big rally this year—if Arthur Hayes is right. The former BitMEX CEO believes Ethereum could rise to $5,000 by the end of 2025, even though it’s been underperforming compared to other layer-1 coins like Bitcoin and Solana.
Speaking at Bitcoin 2025 in Las Vegas, Hayes told Decrypt:
“I think ETH could go to $4,000 or $5,000 this year. It’s the most hated layer-1, and usually, when something is hated during a market shift, that’s when you want to get in.”
Ethereum has faced criticism over the past year while Solana has seen growing attention, but things are starting to turn around. In the last month alone, ETH has climbed more than 45%, now trading around $2,648. If Hayes’ prediction comes true, it would mean another 88% jump to reach $5,000—surpassing its 2021 all-time high of $4,878.
Investment Firms Are Turning Bullish on Ethereum
Hayes isn’t the only one with a positive outlook on Ethereum. Analysts at Standard Chartered recently set a price target of $4,000 for ETH in 2025 and suggested it could rise to $7,500 by 2029. Options markets are also showing more optimism, signaling that investor sentiment may be shifting in Ethereum’s favor.
Meanwhile, investment firm Bernstein has highlighted how the growth of stablecoins is bringing renewed interest to the Ethereum network. According to their research, Ethereum currently hosts 51% of all minted stablecoins, which helps drive network activity and ETH demand.
Bernstein also pointed to the growing importance of Ethereum layer-2 networks. These networks are designed to improve scalability and reduce fees, and they still rely on ETH for transaction costs. The report noted Robinhood’s recent acquisition of WonderFi, which operates an Ethereum layer-2 blockchain. This move could lead to new products like tokenized equities being built on Ethereum infrastructure.
A Shift in Sentiment for Ethereum
Ethereum’s comeback isn’t just about price. The project has faced criticism for being slow to evolve and for leadership issues at the Ethereum Foundation. Earlier this year, co-founder Vitalik Buterin took a more aggressive stance on social media, which some called a “wartime” approach. Since then, the Foundation has made several leadership and strategy changes.
Still, the recent Pectra upgrade seems to have helped build momentum. The upgrade, rolled out earlier this month, was well received and contributed to ETH’s recent price gains.
While Ethereum may still have doubters, Hayes believes that’s exactly what makes it a smart investment at this stage of the crypto cycle.
