Ethereum
Ether (ETH) price could reach $10,000 or more after being ‘eclipsed’ by Bitcoin (BTC), analyst says
Ether (ETH) has been “largely eclipsed” by bitcoin (BTC) in recent months, but the laggard’s price could more than double in 2024, according to Juan Leon, a crypto research analyst at asset manager Bitwise.
“[Ether] could very well exceed $8,000, $10,000 this year, maybe even more,” Leon said in an interview with CoinDesk Markets Daily.
“Bitcoin got all the attention with the launch of Bitcoin ETFs, but [ETH] There are at least two major catalysts that will be brought to the fore,” Leon noted.
This month’s Dencun update will be make transactions cheaper on Layer 2 networks, which will boost activity and even attract mass consumer demand for Ethereum, he explained.
“Most of the positive feelings will show up weeks and months after the upgrade, as the effects are felt,” he added.
Another catalyst are applications for spot exchange-traded funds (ETFs), with a regulatory decision deadline approaching in May.
The chances of approval are not as clear as in the case of Bitcoin spot ETFs earlier this year, the Bitwise analyst said, but the possibility will generate enthusiasm for ether. He gave a 50 to 60 percent chance of approval, but said it would happen “sooner or later.”
Potential approval would boost Ether’s appeal among more conservative institutional investors, just as new spot Bitcoin ETFs launched in January attracted strong investor demand, accumulating net inflows of nearly $9 billion.
The deflationary supply of ether, the resumption of the boom led by EigenLayer, and growing decentralized finance (DeFi) activity also support higher prices for ETH, brokerage Bernstein said in a report last month.
This is similar to how the previous market cycle played out, with bitcoin – being the oldest cryptocurrency and largest market capitalization – leading the market recovery from below, while ether and smaller cryptocurrencies are lagging behind.
In late November 2020, BTC hit its all-time high at $19,000, while ETH hovered below $600, about 60% below its 2018 high. A few weeks later, when BTC surpassed decisively its former all-time high price, ETH embarked on a multi-month rally, eventually reaching a high of $4,400 in May.
If history is to be believed, bitcoin must first surpass the $69,000 level for ether to reach new all-time highs.
Recently, ETH changed hands at $3,850, rising 14% over the past seven days, outperforming Bitcoin’s 9% gain. The CoinDesk 20 Broad Market Index (CD20) is up 13%.