Source: PaxForex Premium Analytics Portal, Fundamental Insight
In the first half of 2024, Bitcoin captivated crypto investors. However, Ethereum should not be overlooked. With a 54% increase year to date, it has nearly matched Bitcoin's performance and has a new catalyst that could propel it even higher in the second half of the year.
Now might be the ideal time to consider Ethereum for your investment portfolio. Here are three compelling reasons why it might surpass the $4,000 mark and achieve a new all-time high.
The major catalyst on the horizon is the anticipated launch of the new spot Ethereum ETFs. If these ETFs see similar success to the spot Bitcoin ETFs, they could significantly boost Ethereum's price. In the first six months of the year, spot Bitcoin ETFs attracted $30 billion from investors, causing Bitcoin's price to surge by 60%. It's expected that the new spot Ethereum ETFs could attract up to $3 billion within their first six months.
The only uncertainty is the exact timing of the new ETFs' debut. Initially expected by the end of May, this was later delayed to the end of June. Now, according to SEC head Gary Gensler, it is anticipated to occur sometime before the end of summer. So, by the time you return from summer vacation, these ETFs might be available for purchase.
An often overlooked fact about Ethereum is its dominance across various blockchain sectors. From decentralized finance (DeFi) to gaming, web3, and the metaverse, Ethereum leads the market. Its blockchain technology underpins many of the most innovative and influential apps of the future. This dominance translates to more users, developers, active wallets, transactions, and cash flows than any other blockchain ecosystem.
Consider this: In the DeFi sector, Ethereum dominates with 60% of all total value locked (TVL), a crucial metric for blockchain performance. In contrast, its main competitor Solana holds only a 4% market share. Emerging rivals like Sui and Aptos barely register. Therefore, the so-called "Ethereum killers" may pose less of a threat to Ethereum than initially anticipated.
No other cryptocurrency garners as much attention for its blockchain upgrades as Ethereum. Following The Merge, a significant upgrade, Ethereum has implemented several smaller technical improvements to enhance its speed and cost-efficiency. Last year saw the Shapella upgrade, followed by Dencun earlier this year. Now, excitement is building for the upcoming Prague-Electra upgrade.
These incremental upgrades are crucial for two main reasons. Firstly, they help Ethereum stay ahead of its competitors. While Solana might currently be faster and cheaper, Ethereum is continually working to close the gap. The ultimate goal is to process 1 million transactions per second, and each upgrade brings Ethereum closer to this milestone.
Secondly, each upgrade reinforces confidence in Ethereum's future roadmap. Unlike other cryptocurrencies that often appear disorganized in their development, Ethereum outlines a clear roadmap at the start of each year, explaining how all the steps fit together. This process is akin to how publicly traded companies provide guidance on future results.
Considering these factors, there's a reasonable chance Ethereum could hit a new all-time high of $5,000 by early 2025 - a 40% increase from its current price of $3,500.
However, $5,000 might be a conservative estimate. Some analysts predict Ethereum could reach $10,000, while investment firm VanEck suggests it could soar to $22,000 by 2030.
Much of this depends on the performance of the new spot Ethereum ETFs. If these ETFs are delayed or fail to attract significant investment, expectations may need to be adjusted. If you're comfortable with this risk, now might be a good time to consider investing in Ethereum while it remains below $4,000.
As long as the price is above 3350.00, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 3472.25
- Take Profit 1: 3800.00
- Take Profit 2: 4100.00
Alternative scenario:
If the level of 3350.00 is broken-down, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 3350.00
- Take Profit 1: 3150.00
- Take Profit 2: 2900.00
