Ether Could Skyrocket in 2024, Outshining Bitcoin: Expert Analysis and Catalysts

Bitcoin has reached a new all-time high while ether lags behind, but past market cycles indicate that change is on the horizon.

Ether’s price could surge to $10,000 or more this year due to various catalysts, says Bitwise.

Ether (ETH) has been living in the shadows of Bitcoin (BTC) for quite some time, but according to Juan Leon, a crypto research analyst at asset manager Bitwise, that might change soon. Leon predicts that Ether could more than double in price this year, potentially reaching $8,000 or even $10,000. While Bitcoin has been hogging the spotlight with the launch of Bitcoin ETFs, Ether has a couple of major catalysts that are set to take center stage.

Dencun Upgrade and Spot ETFs: Key Catalysts

The upcoming Dencun upgrade and the excitement around spot ETF applications are the driving forces behind Ether’s potential surge. The Dencun upgrade, scheduled for this month, will make transactions cheaper on layer 2 networks, attracting mainstream consumer demand and bolstering activity. Leon explains that the positive effects of this upgrade will unfold in the weeks and months following its implementation, leading to increased sentiment towards Ether.

On top of that, the possibility of a spot Ether exchange-traded fund (ETF) approval is generating even more excitement. The regulatory decision deadline is approaching in May, and although the odds of approval are not as clear-cut as they were for the spot Bitcoin ETFs, Leon believes there is a 50%-60% chance of approval. He states that it’s just a matter of time before an ETF for Ether is approved, which would further enhance its appeal to institutional investors.

Factors Fueling Ether’s Potential Growth

Aside from the upcoming catalysts, several factors are contributing to Ether’s growth potential. First, Ether’s deflationary supply, combined with the restaking boom led by EigenLayer, is creating a favorable environment. Additionally, the increasing activity in decentralized finance (DeFi) is also supporting higher prices for Ether, as recently outlined in a report by brokerage firm Bernstein.

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When Could Ether Reach New All-Time Highs?

While Bitcoin has already reached a new all-time high this week, Ether is still trailing behind, approximately 20% lower than its 2021 peak. However, this pattern is reminiscent of the previous market cycle, where Bitcoin led the market recovery while Ether and other cryptocurrencies lagged behind. In late November 2020, Bitcoin was knocking on the door of its all-time highs while Ether remained around $600, significantly lower than its previous peak in 2018. But once Bitcoin surpassed its former record price, Ether embarked on a multi-month rally, eventually hitting a peak of $4,400 in May.

Therefore, if history repeats itself, Ether will have its shot at new all-time highs once Bitcoin crosses the $69,000 level.

Currently trading at $3,850, Ether has seen a 14% increase over the past seven days, outperforming Bitcoin’s 9% gain. The broader Blocking.net 20 Index (CD20) has also experienced a 13% increase during this period.

Q&A: Addressing Your Burning Questions

Q: What is the Dencun upgrade, and why is it important for Ether?
The Dencun upgrade is an upcoming Ethereum network upgrade that is set to improve transaction efficiency and lower costs on layer 2 networks. This upgrade is crucial for Ether as it will make transactions cheaper and attract mainstream consumer demand.

Q: What is the significance of a spot Ether ETF approval?
If a spot Ether exchange-traded fund (ETF) is approved, it would open up Ether to a broader base of investors, particularly institutional investors. This approval would likely create a surge in demand and could drive up the price of Ether.

Q: How does Ether’s deflationary supply impact its price?
Ether’s deflationary supply means that the number of Ether in circulation decreases over time. This reduction in supply can create scarcity, driving up the price of Ether.

Q: What is the restaking boom and how does it affect Ether?
The restaking boom refers to the practice of staking Ether in order to earn rewards. This process locks up a portion of Ether’s supply, reducing the available circulating supply and potentially increasing its price.

Expert Analysis: Future Outlook and Investment Recommendations

Based on the upcoming catalysts and current market trends, it is reasonable to anticipate a positive outlook for Ether in the future. The Dencun upgrade and the potential approval of a spot Ether ETF could provide significant momentum for Ether’s price increase. Additionally, factors such as Ether’s deflationary supply and the growing DeFi activity further support the case for higher prices.

Therefore, it may be a wise investment strategy to consider adding Ether to your portfolio. However, as with any investment, it is crucial to conduct thorough research and consult with a financial advisor to make informed decisions.

References:

• Ethereum’s Dencun Upgrade Could Mean Near-Zero Fees for Layer-2 Blockchains: Fidelity Digital Assets
• Bernstein said in a report

Remember, cryptocurrency investments can be volatile and involve risks. Always make sure to do your own research and consult with a financial advisor before making any investment decisions.

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