Ethereum Hype Spurs Crypto Rally as VanEck Projects $22,000 ETH Price Target

Investor sentiment on Ethereum has turned bullish after the SEC granted initial approval to spot ETH ETFs.

Crypto markets climbed on Thursday morning amid bullish sentiment around Ethereum and anticipation of a key U.S. jobs report.

Leading the rally, Bitcoin surged past $71,000, Ethereum rose by 1.3%, and Solana remained stable. Polkadot’s native DOT token increased by 1%, according to CoinGecko data.

VanEck Raises Ether Price Target

Ethereum ETF issuer VanEck raised its price target for Ethereum, projecting that the world’s second-largest cryptocurrency could reach $22,000 by 2030.

In a June 5 blog post, VanEck’s head of digital assets research, Matthew Sigel, increased his 2030 projections for Ether from $11,800 last year.

“We anticipate that spot ether ETFs are nearing approval to trade on U.S. stock exchanges,” said the analyst. “This development would allow financial advisors and institutional investors to hold this unique asset … and benefit from the pricing and liquidity advantages characteristic of ETFs.”

Sigel’s projection is based on $66 billion in forecasted free cash flows generated by Ethereum.

ETH Inflows Continue

Ethereum experienced a "turnaround in sentiment" after the U.S. Securities and Exchange Commission (SEC) approved the 19b-4 form. According to CoinShares, Ethereum saw $33.5 million in inflows for the week ending May 31.

The reversal comes after Ethereum had a 10-week streak of outflows totalling $200 million.

In terms of Ethereum futures open interest (OI), data from CoinGlass shows an increase following the SEC's approval of Ether ETFs. On May 23, open interest stood at around $15 billion. As of today, open interest for Ethereum futures stands at $17.09 billion, an increase of 13.2%.

Wall Street Eyes Upcoming U.S. Jobs Report

Investors are now looking ahead to Friday’s nonfarm payrolls report for May.

The anticipation follows the European Central Bank’s decision to cut interest rates on Thursday for the first time since 2019. The jobs data is likely to influence the Federal Reserve’s next policy decision, although most expectations lean towards maintaining current rates.

U.S. stocks were relatively flat on Thursday. The Dow Jones Industrial Average increased slightly by 0.12%, while the S&P 500 and Nasdaq Composite were flat.