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Ethereum, the undisputed king of altcoins, is the second-largest crypto by market capitalization, trailing only behind Bitcoin. Its market capitalization of $286 billion at the end of 2023, diverse functionalities, and cutting-edge technology make it one of the most dominant forces in the crypto sphere. Now, as the curtain rises on 2024, interest in Ethereum price prediction for 2024 hangs heavy in the air.
Like any other crypto, Ethereum’s future price can be influenced by an interplay of various factors. As is true for any financial market, gazing into the future can be a notoriously uncertain task. Aside from factors related to the Ethereum blockchain and its various utilities, or even the broader crypto sector, many other global events stand to sway Ethereum’s price, some predictable, and some sudden.
However, while predicting Etheeum’s trajectory in 2024 is undeniably tricky, understanding its 2023 performance can help us form a better understanding of what to expect in 2024. So, before making predictions regarding Ethereum’s future price, let’s look closer at its performance this year.
Ethereum performance 2023
2023 was a rollercoaster ride for Ethereum with its highs and lows. While it didn’t quite reach the dizzying heights of the 2021 bull run, it also managed to avoid the downturns brought by the crypto winter of 2022.
The year began with Ethereum hovering around the $1,200 mark, recovering from the 2022 crypto winter. The optimism surrounding ‘The Merge’ and Ethereum’s transition from a Proof-of-Work to a Proof-of-Stake consensus mechanism in late 2022 fueled a slow yet steady recovery of Ethereum’s price in 2023.
In April 2023 came the Shanghai upgrade, a major Ethereum upgrade since the merge and the transition in 2022. The Shanghai upgrade allowed validators to withdraw the staked ether (ETH) locked in the network. The update aimed to improve the blockchain’s functionality\. Ethereum’s price spiked over the $2000 mark around this time.
In the latter half of 2023, investors turned their attention toward the possibility of Securities and Exchange Commission (SEC) approved spot crypto ETFs for Bitcoin and Ethereum, namely ones from BlackRock. Overall, in 2023, Ethereum’s price grew over 99%, crossing the $2200 mark. Although there were a few dips below $1600, the overall trend remained positive.
Investor sentiment is largely bullish for Ethereum even at the end of 2023, and pricing momentum remains positive as we head into 2024.
Ethereum price prediction 2024
Now, moving on to the ‘Ethereum price prediction 2024’, let’s look at some significant factors that could influence Ethereum’s future price trends.
The Ethereum Dencun upgrade
Ethereum is set to undergo an upgrade in 2024 called the ‘Cancun-Deneb’ or ‘Dencun’ upgrade. The upgrade will first be tested on the Goerli network, then added to Sepolia on January 30 and Holesky on February 7. The upgrade aims to lower transaction fees, introduce new features for bridges and staking pools, and restrict the usage of self-destruct operations on smart contracts. The Ethereum team has not yet announced when this upgrade will be implemented on the mainnet. Still, we can expect for it to be done after undergoing a few months of testing.
Spot crypto ETF approvals
Over a dozen asset management firms, such as Grayscale, BlackRock, Invesco, Bitwise, and Valkyrie, are pursuing crypto spot ETF applications. The SEC had rejected these applications in the past, arguing that the cryptocurrency market is highly volatile and susceptible to manipulation, making it unsuitable for a spot ETF. However, the sentiments changed after Grayscale’s win against the SEC. Experts predict that spot Bitcoin ETFs will get approved early in 2024. If Bitcoin spot ETFs get approved, it will set a precedent for Ethereum spot ETF approvals in Q2 and Q3 of 2024. Many, including BlackRock, have already applied for the Ethereum spot ETF.
Follow-ups of ‘The Merge’
Ethereum founder Vitalik Buterin has a roadmap for the future of the Ethereum blockchain, mentioning the stages after ‘The Merge.’ As noted by Buterin, the up and coming stages are:
- The Surge: Upgrades that aim to improve scalability by rollups and data sharding.
- The Scourge: Upgrades that focus on enhancing censorship resistance, decentralization, and mitigating protocol risks caused by MEV (Maximal Extractable Value).
- The Verge: Upgrades that aim to simplify the process of verifying blocks.
- The Purge: Upgrades designed to reduce the computational costs of running nodes and simplify the protocol.
- The Splurge: Other upgrades that don’t fit neatly into the previous categories.
Regulatory scenario
Jurisdictions around the world are racing to regulate crypto, and precedents have been set by Hong Kong and the UK already. In 2024, positive regulatory frameworks are expected to continue to take shape worldwide, making investors more confident in crypto.
Ethereum price prediction 2024: onward and upward
If ETH repeats a hike similar to 2023 in the coming year, Ethereum’s price target for next year should easily be around $4,000 – putting it on path for a new ATH by 2025. The factors contributing to such a rally would be the expected ETF approvals, new ETH upgrades, and improved crypto regulations. However, ETH is yet to attract institutional attention on the same scale as Bitcoin, and that in particular is a force much needed for Ethereum’s continued growth in the coming times.
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