Is the bullish trend of Ethereum sustainable? Experts predict the price for 2024.
Exploring Ethereum’s Price Surge and Predictions for 2024
Ethereum (ETH) has been making headlines with its rapid price increases since late October 2023. On January 2, ETH reached a high of $2,400, and market sentiment remains overwhelmingly positive.
One of the main factors contributing to this surge is the highly anticipated EIP-4844 upgrade, which will enhance Protodanksharding and scaling for layer-two networks. This development has sparked optimism among analysts, including those from JPMorgan, who believe that Ethereum has the potential to outperform Bitcoin in 2024.
To understand the evolving landscape of Ethereum, it is crucial to consider the following factors and their implications for the Ethereum forecast.
Factors Influencing ETH Price
Unique Addresses and Long-Term Holders:
As of January 3, Ethereum’s network has seen a continuous increase in unique addresses, surpassing 250 million. This growth is a strong indicator of Ethereum’s expanding user base. Additionally, over 73% of the circulating supply of ETH is held by long-term holders who have retained their holdings for a year or more. This underscores the potential of Ethereum.
Fresh Capital Influx:
In the second week of December, the Ethereum market experienced a shift in capital flows, with nearly $20 billion flowing into both ETH and Bitcoin (BTC). Furthermore, the year-to-date fund flow for ETH turned positive in December 2023, indicating renewed interest from fund managers. This change suggests that investors are increasingly looking towards Ethereum for investment opportunities, contributing to the bullish ETH outlook.
Technological Developments and Upgrades:
The anticipated Dencun Upgrade in 2024 is crucial to the future of Ethereum. This upgrade aims to enhance network efficiency by reducing transaction fees on the mainnet. It has the potential to address congestion issues and optimize the ecosystem for users and developers.
Regulatory Environment and ETF Potential:
The approval of a spot Bitcoin exchange-traded fund (ETF) has the potential to be a game-changer for the Ethereum price forecast. If an Ethereum-based spot ETF is approved, it could boost investor confidence and market liquidity, further contributing to Ethereum’s growth trajectory.
ETH Price Action and Analysis
As of January 3, Ethereum is trading at approximately $2,380, reflecting a 95% increase in price over the last year. This significant growth indicates the bullish potential of Ethereum.
Furthermore, Ethereum is trading above its 200-day simple moving average (SMA) of $1,860, indicating a positive trend. In the short term, Ethereum shows a balance of power slightly in favor of the bulls, as the price has not dropped below the 20-day Exponential Moving Average (EMA) of $2,270.
However, it is important to note that if the price fails to break above the channel soon, selling pressure may intensify. In such a scenario, the price could decline towards the 50-day SMA at $2,177 and potentially reach the support level near $2,000.
Looking ahead, if Ethereum manages to break and close above its current channel, it will signal that the bulls are still in control. This could lead buyers to attempt pushing the price over the $2,446 resistance levels, targeting a longer-term uptrend towards the $3,000 mark.
ETH Price Predictions
Ethereum’s price forecasts have garnered significant attention from industry analysts. VanEck, a notable investment firm, projects a substantial increase in Ethereum’s network revenues, suggesting they could rise from $2.6 billion to $51 billion by 2030. Based on the assumption that Ethereum secures a 70% market share in smart contract protocols, VanEck’s analysis points to an Ethereum future price of approximately $11.8k in 2030.
Crypto analyst Lark Davis takes a more bullish stance in his ETH price prediction. He speculates that if Ethereum mirrors or slightly underperforms its previous cycle’s gains, the price could soar to about $15,000 per coin, considering a potential 200% gain from its high of $4,880 in November 2021.
For a nearer-term outlook, DigitalCoinPrice estimates Ethereum’s price to be around $5,149 in 2024, reflecting optimistic projections for Ether.
FAQs
Will Ethereum go up or down in the short term?
Given Ethereum’s recent performance, including a price jump to $2,400 levels and a bullish market sentiment, there is cautious optimism for a short-term rise. However, the crypto market is known for its volatility, so caution should always be exercised.
What are the long-term prospects for Ethereum?
In the long run, the future of Ethereum looks promising, especially with the anticipated Dencun Upgrade in 2024, which is expected to enhance network efficiency. If Ethereum breaks and holds above its current channel, it may attempt to cross the $2,446 resistance, aiming for $3,000. However, it is important to remember that the crypto market is highly volatile, and investments should be made with careful consideration.
Is Ethereum a good investment now?
Considering Ethereum’s continuous growth in unique addresses, the influx of fresh capital, and technological upgrades, it presents itself as a potentially good investment. However, factors such as regulatory changes and market volatility should be taken into account. It is essential to approach Ethereum investments with informed caution.
Should I buy Ethereum?
The decision to buy Ethereum should be based on your investment strategy and risk appetite. With its price above the 200-day SMA and positive ETH price predictions from analysts, there appears to be a bullish outlook for ETH. However, as with any investment, especially in volatile markets like cryptocurrencies, thorough research or consultation with a financial expert is advisable.
Disclosure: This article is for educational purposes only and does not constitute investment advice. The content and materials featured on this page should not be relied upon for making investment decisions.
