The CEO of a crypto-trading platform has predicted that Ethereum, the second largest cryptocurrency in the world, will reach prices as high as $40,000. Bill Barhydt, the CEO of trading platform Abra, recently said in an interview with CNBC that due to the various use cases of the Ethereum blockchain and Ether cryptocurrency, he remains bullish on the price of the digital asset.

“Ethereum’s network effect is based on this idea that it could become the computers of the world. It’s used for stablecoins, NFTs (non-fungible tokens), defi (decentralized finance)…and games now” , Barhydt said.

The price of the token currently stands at $2,577, a far cry from its all-time high of $4,891.

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Barhydt added that he sees upside potential of up to $40,000 for ETH, a price above the current Bitcoin price ($38,757 for 1 BTC).

“I think you’re talking about potentially $30,000 to $40,000 of Ethereum,” Barhydt said.

Barhydt suggested that the high level of gas and trading could be current obstacles to reaching the bull market.

“If gas fees and transaction fees go down, which is the Proof of Stake promise, be careful, because now all the hurdles of those network effects are removed,” Barhydt said.

The upcoming update that would move Ethereum from a proof-of-work system to a proof-of-stake system could result in a temporary sell-off in the market, he warned.

“We may have a bit of a news sell effect after the initial rush to upgrade with the upgrade in June or July – whenever that happens, the upgrade to proof of stake – so you can see a kind of sell-off news,” Barhydt explained.

Ethereum, along with other cryptocurrencies, is currently experiencing a slump due to global macroeconomic conditions – Russia’s invasion of Ukraine and the hawkish outlook of central banks around the world. ETH is currently down 8.91% from the prior month.

(Edited by : Thomas Abraham)