With Ethereum’s price reaching $2,400, what factors are driving the market? Let’s analyze Ethereum (ETH) price predictions for 2024.
Ethereum (ETH) has been in the spotlight due to its rapid price jumps since late October 2023. On January 2, ETH’s price rose to $2,400, with market sentiment remaining strongly positive.
A key development contributing to this surge is the highly anticipated EIP-4844 upgrade, which improves Protodanks hardening and scaling for layer-two networks.
Additionally, analysts including those from JPMorgan are optimistic about Ethereum’s ability to outperform Bitcoin in 2024.
As we delve into Ethereum’s evolving landscape, it is essential to consider these factors and their implications on the Ethereum forecast.
Factors Affecting ETH Price
Several key factors have influenced Ethereum’s recent performance, each contributing to its price trajectory in different ways:
Unique addresses and long-term holders
As of January 3rd, Ethereum’s network has seen a steady increase in unique addresses, now exceeding 250 million, a strong indication of Ethereum’s growing user base.
Additionally, more than 73% of the more than 120 million circulating supply of ETH is held by long-term holders who have held their holdings for a year or more, underscoring Ethereum’s potential.
Fresh capital inflows
The Ethereum market saw a shift in capital flows during the second week of December, with an inflow of nearly $20 billion in capital in both ETH and Bitcoin (BTC).
Additionally, the year-to-date fund flow for ETH turned positive in December 2023, showing renewed interest from fund managers.
This change suggests that investors are increasingly looking to Ethereum for investment opportunities, adding to the bullish ETH outlook.
Technological developments and upgrades
Ethereum’s expected network upgrade in 2024, known as the Dencun Upgrade, is set to introduce improvements aimed at boosting network efficiency, such as reducing transaction fees on the mainnet.
This upgrade is essential for the future of Ethereum, potentially easing congestion issues and optimizing the ecosystem for users and developers.
Regulatory Environment and ETF Potential
Following the approval of spot Bitcoin exchange-traded funds (ETFs), the potential approval of an Ethereum-based spot ETF could be a game-changer for the Ethereum price forecast.
The approval of a spot ETF for Ethereum could boost investor confidence and market liquidity and contribute to Ethereum’s growth trajectory.
ETH price action and analysis
As of January 3, Ethereum is trading at around $2,380. Over the past year, its price has seen an impressive 95% rise, a strong indication of its bullish Ethereum potential.
Furthermore, Ethereum is trading above its 200-day simple moving average (SMA) of $1,860, suggesting a bullish or positive trend.
In the short term, Ethereum shows a balance of power slightly in favor of the bulls. The price did not break below the 20-day exponential moving average (EMA) of $2,270.
However, it is crucial to note that selling pressure may increase if the price does not rise above the channel soon.
If the price breaks below this 20-day EMA, we could see it drop to the 50-day SMA at $2,177 and possibly to the support level near $2,000.
Looking at Ethereum’s future, if Ethereum manages to break and close above its current channel, it will indicate that the bulls are still in control.
This could lead to the buyers trying to push the price above $2,446 resistance levels, targeting a long-term uptrend towards the $3,000 mark.
ETH price prediction
Ethereum’s price predictions are attracting considerable attention from various industry analysts.
VanEck, a notable investment firm, predicts a significant increase in Ethereum’s network revenue, suggesting that it could rise from $2.6 billion to $51 billion by 2030.
Based on the premise that Ethereum can secure a 70% market share in smart contract protocols, VanEck’s analysis indicates a future ethereum price of around $11.8k in 2030.
Crypto analyst Lark Davis offers a more bullish stance in his ETH price forecast. He speculates that if Ethereum mirrors its previous cycle’s gains or slightly underperforms, the price could rise to around $15,000 per coin, considering a potential gain of 200% from its peak 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 Ether projections.
Frequently Asked Questions
Will Ethereum rise or fall 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 near-term rally. However, the crypto market is notoriously volatile, and you should always be careful.
What is the long-term outlook for Ethereum?
In the long term, the Ethereum future looks promising, especially with the expected Dencun upgrade in 2024, which is expected to improve network efficiency. If Ethereum breaks and holds above its current channel, it could try to cross the $2,446 resistance, with an eye on $3,000. However, you should never invest more than you can afford to lose, as the crypto market is extremely volatile.
Is Ethereum a good investment now?
Considering Ethereum’s continuous growth in unique addresses, the influx of fresh capital and technological upgrades, this presents a potentially good investment. However, factors such as regulatory changes and market volatility must be taken into account, making it essential to approach with informed caution.
Should I Buy Ethereum?
Whether you should buy Ethereum should be based on your investment strategy and risk appetite. With its price above the 200-day SMA and positive ETH price forecast from analysts, it appears to be a bullish ETH outlook. But as with any investment, especially in volatile markets like crypto, it is advisable to do thorough research or consult with a financial expert.
Disclosure: This article does not represent investment advice. The content and materials on this page are for educational purposes only.
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
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