DeepSeek, the most famous artificial intelligence (AI) model hailing from China, sees this year’s Ethereum (ETH) trajectory as nothing short of positive. 

Currently, the second-largest cryptocurrency is trading at around $1,936, down 35% year-to-date due to pressure from technical selling and broader market weakness.

Nonetheless, DeepSeek predicts it could rebound to a price range of $3,500–$5,500, implying a 185% rally over the next ten months, a result that would put the asset way above its all-time high of $4,953 seen on August 24, 2025.

DeepSeek Ethereum price prediction

Elaborating on the forecast, the AI noted that regardless of short-term price action, Ethereum enjoys the reputation of the most important settlement layer for the vast majority of decentralized finance (DeFi) and real-world asset (RWA) tokenization. 

This fundamental utility, DeepSeek argued, creates a long-term demand floor that didn’t exist in previous market cycles. As tokenization becomes increasingly prevalent in new markets, such as tokenized real estate, institutional appetite could indeed grow. 

Commenting further on institutional growth, DeepSeek also highlighted that Spot Ethereum ETFs, despite currently weak net flows, provide a regulated on-ramp for institutional capital. If the broader market stabilizes, this capital is likely to flow back in, providing price support at these levels.

Prompted to give an analytical conclusion with a more precise base-case scenario figure, the large language model settled on a $4,000 price target. This price, the algorithm reasoned, highlights Ethereum’s status as a digital commodity while also accounting for economic shifts within its own ecosystem, as well as the uncertain macroeconomic environment of 2026. 

In short, this year’s developments will mark a phase of maturation for Ethereum, as its price will be closely tied to institutional adoption and real-world yield generation, not retail speculation and explosive rallies.

Featured image via Shutterstock