The ETH optimism is also encouraged by the growth of DeFi and tokenization on Ethereum. As a result, analysts like Markus Thielen predict major growth for Ethereum. Meanwhile, the launch of Etherealize could also attract traditional finance players to Ethereum's ecosystem. Internal changes in the Ethereum Foundation, including calls for new leadership and a larger role for Consensys, are all signs that the ecosystem is more than ready to adapt to the much more favorable regulatory and market environment under President Donald Trump.
Analysts Expect Ethereum to Rally
Ethereum (ETH) may be on the verge of a major breakout after the pivotal decision by the US Securities and Exchange Commission (SEC) to cancel a crypto accounting rule that previously prevented financial firms from offering cryptocurrency services. The SEC’s Staff Accounting Bulletin (SAB) 121 was introduced in March of 2022, and it required firms holding cryptocurrencies to record them as liabilities on their balance sheets. However, on Jan. 23, the SEC revoked this rule.
Markus Thielen, head of research at 10x Research, pointed out the potential impact that this decision could have on Ethereum. He suggested that this regulatory shift could catalyze the expansion of decentralized finance (DeFi) services, of which Ethereum is a core infrastructure of the ecosystem.
Thielen also mentioned that despite typically not being an avid advocate for Ethereum, its current price action presents a very compelling case for a low-risk, high-reward opportunity. At press time, ETH was trading hands at $3,373 after its price jumped by more than 4% over the past 24 hours of trading. Thielen suggested that there is a very real possibility of a breakout above the current triangle pattern on Ether’s chart.
(Source: 10x Research)
The potential for Ethereum to reach new heights caused a lot of optimism among other crypto analysts as well. Titan of Crypto stated on social media that a $7,000 price for Ethereum is “inevitable.” Another trader called Crypto Caesar also predicted a surge for the asset.
These bullish sentiments align with broader developments in the Ethereum ecosystem, including the anticipated approval of Ether exchange-traded funds (ETFs) that allow staking, which was recently pointed out by Ethereum co-founder Joseph Lubin. Lubin also revealed that the Trump family could soon expand its presence in the cryptocurrency space by building large-scale businesses on Ethereum.
Ethereum Gets a Boost with New Institutional Marketing Arm
ETH’s price could also receive a nice boost now that Etherealize, a new Ethereum-focused marketing firm, recently launched. Its main mission is to promote Ethereum and its token Ether to institutional investors.
The project is backed by funding from the Ethereum Foundation and co-founder Vitalik Buterin, and debuted on Jan. 22. Overall, it plans to bridge the gap in institutional understanding of blockchain technology. Anthony Sassano, host of The Daily Gwei, praised the timing of the launch, and pointed to the pro-crypto stance of the Trump administration as an ideal backdrop for Etherealize to advocate for Ethereum's potential on Wall Street.
Ethereum struggled to reclaim its all-time high of over $4,800 that was set in 2021, even after ETFs for ETH launched in the United States last July. On the other hand, Bitcoin soared to new peaks, driven by huge inflows into US spot Bitcoin ETFs and optimism surrounding President Trump’s crypto-friendly policies.
The company is co-founded with TradFi veterans Vivek Raman and James Fickel, and it offers a suite of tools for institutions to tokenize real-world assets on Ethereum. This approach is very similar to efforts by other major financial players like BlackRock, Franklin Templeton, and Guggenheim, which have already started exploring tokenization on blockchain networks.
Raman believes tokenization has the potential to transform industries like treasury markets, mutual funds, stocks, bonds, commodities, and real estate, by building on the early success of stablecoins. He pointed out that public blockchains like Ethereum can enable institutions to reduce costs and improve operational efficiency by using tokenized assets for trade and commerce. BlackRock CEO Larry Fink recently said something very similar by calling for the rapid approval of tokenization for bonds and stocks by the US SEC. BlackRock’s own tokenized money market fund on Ethereum attracted over $394 million, ranking as the third-largest tokenized treasury asset according to data from Dune Analytics.
The Ethereum Foundation also recently announced plans to allocate 50,000 ETH, which is valued at close to $164 million, to support Ethereum’s decentralized finance ecosystem. Vitalik Buterin revealed that the nonprofit will undergo organizational changes to better support developers and enhance transparency in the community.
Consensys Ready to Take Bigger Role in Ethereum
Ethereum co-founder Joe Lubin recently voiced his support for an overhaul of the Ethereum Foundation (EF) and shared that he is ready for his company, Consensys, to take on a bigger role in the ecosystem. During an interview, Lubin acknowledged that Consensys historically took more of a backseat to avoid perceptions of undue influence, but recent developments indicated that many people in the community still look to the company to champion Ethereum.
The Ethereum community faced many internal tensions over the past few weeks, especially with criticism directed at EF’s perceived lack of leadership under Executive Director Aya Miyaguchi. Dissatisfaction also grew over the slow progress of Ethereum’s scaling roadmap and the stagnation of ETH’s price. This led to calls for Miyaguchi to be replaced with Ethereum researcher Danny Ryan. Despite the criticism, Ethereum creator Vitalik Buterin still defended Miyaguchi.
Lubin believes there is a call for a shift in EF’s approach, particularly as the pro-crypto stance of the current US administration and expected regulatory changes created an environment that is ripe for growth and innovation. He suggested that EF has to adopt a more high-energy and risk-taking mindset to align more with the evolving ecosystem. Buterin agrees with this, and recently hinted that there will be major changes to EF’s leadership structure. He also suggested that Consensys or a similar organization could take over greater responsibilities.
Consensys was established as a for-profit entity in 2014 to develop Ethereum infrastructure and applications. However, it has been operating under scrutiny for a long time now due to concerns about corporate influence on the blockchain’s direction. Buterin’s recent statements signaled a shift which suggests that Consensys could play a larger role when it comes to helping Ethereum reach its goals. Lubin welcomed the suggestion, and stated that the company is very eager to actively compete and provide interfaces for businesses and governments.
Community discussions mostly centered on replacing Miyaguchi, whose low-profile leadership attracted a lot of criticism. However, her understated approach may have been instrumental in shielding Ethereum from regulatory scrutiny, particularly during the SEC’s investigation into whether ETH qualifies as a security.
Although Buterin shared that the Foundation is working hard to improve EF’s technical expertise and ecosystem engagement, he dismissed the idea of a drastic ideological pivot for the foundation. In other words, it seems like Ethereum is more focused on an evolution rather than a complete departure from its established principles.
