Ethereum May Reach $4,000 Within Next Few Months with These Drivers

The second biggest cryptocurrency in terms of market capitalization size, Ethereum, remains one of the assets in the crypto market that traders are watching the most closely after Bitcoin.

While the crypto market continues to show harsh turbulence, analysts and trading experts stay optimistic about the trajectory ETH may take. Many experts predict that Ethereum may reach $4,000 over the next several months. The bullish ETH market sentiment has been fueled by some recent developments, growing institutional adoption, and Ethereum’s correlation with Bitcoin.

ETH Touted by Trump’s family

At the moment, ETH is trading at approximately $2,766 and is down by roughly 3% from its previous close. The seeming lack of price growth (unlike with Bitcoin) may discourage some traders. However, crypto experts insist that the fundamentals of Ethereum remain strong enough to ensure ETH a substantial surge soon.

Besides, ETH has got into the spotlight from the Trump family this week. One of the most notable recent developments was Eric Trump’s endorsement of Ethereum this week as he suggested that it was time “to add ETH” on the X social media app (formerly Twitter). Many crypto investors and influencers considered that a bullish sign, sharing that take with their eager followers.

Since Trump was previously mostly focused on Bitcoin and various meme coins, such a pivot seemed surprising and bullish to the crypto community giving them an idea of a likely ETH price surge in the near future.

Also, Donald Trump’s fund World Liberty Financial has acquired a massive $47 million worth of this cryptocurrency. That happened on January 21, a day after Trump’s inauguration. The tweet said: “To commemorate the inauguration of Trump as the 47th President of the United States, $WLFI is proud to announce the following strategic purchases today.” Aside from $47,000,000 ETH, the fund acquired $47,000,000 wBTC, $4,700,000 Aave, $4,700,000 LINK, $4,700,000 TRX, and $4,700,000 ENA.

That announcement sparked speculation among the ETH community that Ethereum may see a large demand from financial institutions and can potentially drive ETH to new price highs this year.

Ethereum’s Strong Correlation with Bitcoin

Ethereum, like other top altcoins, has been recently closely correlated with Bitcoin’s ups and downs and this is yet another major trigger that can potentially help ETH reach $4,000 this year.

Last week, Bitcoin regained the $100,000 mark but it sharply went down as Donald Trump introduced high trade tariffs against Mexico, Canada, and China on Saturday, February 1. The market plunged following BTC and Ethereum in particular dropped by more than 27%, losing $3,430 and finding a bottom at $2,490 on February 3. That geopolitical action triggered a rise of uncertainty in financial markets around the world, causing a massive correction and hitting the cryptocurrency market.

On the same day, BTC surged by roughly 10% as the US president suspended the implementation of those 25% tariffs after negotiating with the governments of Mexico and Canada. Ethereum followed due to its strong correlation with the largest digital currency, spiking by 17.80 and reaching the $2.890 level. Since then, ETH has been trading in a range, striving to overcome the $2,860 resistance level. Despite the fact that Bitcoin has lost more than 4% since Monday in rising and falling waves on charts, experts still believe that BTC’s long-term uptrend is still active, and over the coming months Ethereum is likely to benefit from that, rising along with it.

Vitalik Buterin’s Recent Statements on Social Media

Ethereum’s co-founder and its public leader Vitalik Buterin has recently been quite active on social media and the X platform (formerly Twitter) in particular. In his recent tweets, he has been talking about the future of the ecosystem, mentioning the EIP- 7702 proposal. It will be a part of the upcoming Ethereum Pectra upgrade scheduled for quarter one this year, likely March or April.

He tweeted: “Let’s work hard to make sure 7702 is not just a blockchain feature but also a reality for users!”

He has also spoken about the improvement of the layer-1 Ethereum, talking about its future and sayijng in particular that certain upgrades must take place by 2030 with new features added, such as: long-term robust economics, long-term robust staking decentralization. Also, he mentioned the necessity for “a clean and simple protocol, something worthy of a chain that aspires to be a neutral global base layer. This means zeroing out huge amounts of technical bloat.”

Still, the future remains uncertain with the numerous issues for top cryptocurrencies in the geopolitical and economic spheres, as well as in the regulatory space. Still, with the US plans to embrace cryptocurrencies, Bitcoin first of all, and perhaps Ethereum and other top altcoins as well, the general outlook for ETH remains positive. Analysts expect to see Ethereum’s utility grow along with institutional interest to ETH and high-profile endorsements of it. That cumulatively could help push the ETH price towards $4,000 over the coming months.