Ethereum
Ethereum Price Prediction – Forbes Advisor Australia
The affair of the bull
Sassano believes that there are a number of scenarios that could fuel an increase in the price of Ethereum in the future, one of them being a new development known as “resttaking”, in which users stake the same tokens on the central blockchain and other protocols, thereby securing multiple networks at the same time.
“The rollback unlocks an entirely new primitive for Ethereum and expands ETH’s strong market cap and liquidity profile to secure services,” Sassano said.
Investor enthusiasm regarding the re-easing has been high, with many new re-easing protocols emerging over the past few months and billions of Ethereum deposited by investors. “EigenLayer, the current leading restructuring protocol, has already collected over $6 billion in staked ETH tokens,” Sassano said.
Just like the BTC spot ETF Applications have created a positive narrative for Bitcoin, driving up the price of Bitcoin until the approval date, Sassano believes the same situation could happen for Ethereum.
“With the approval of spot BTC ETFs in January and the SEC’s change in attitude toward Ethereum over the past six months, there is good reason to believe that the SEC will approve trading of spot ETH ETFs sometime in the future. of 2024,” he said.
The earliest approval date is expected to be May 23, but it could happen any time this year.
Many major network upgrades are also planned for 2024, which could have a positive impact on the price of Ethereum. For example, Sassano points to Dencun, the long-awaited upgrade to the Ethereum network, which will go live sometime in March and will bring many improvements, not the least of which will be lower transaction fees. This is particularly important as much transaction activity has moved from Ethereum to Ethereum-based Layer 2 networks over the past 12 months. These layer 2 networks, which are essentially blockchains existing on top of Ethereum, take advantage of Ethereum’s decentralization and security while providing faster and cheaper transactions for users. The Dencun upgrade will make these networks even more economical, reducing transaction fees to pennies, or potentially even lower in some cases.
With the approval of spot BTC ETFs in January and the SEC’s changing attitude towards Ethereum over the past six months, there is good reason to believe that the SEC will approve trading of ETH ETFs spot sometime in 2024.
Petra, another Ethereum upgrade expected to go live by the end of this year, is still in development, but as Sassano notes, “it looks like the main improvement will be the strengthening of resistance properties to the censorship of Ethereum. This enhancement ensures that all users have equal access to the network’s services, preserving the platform’s decentralized and open format for digital transactions and applications.
Finally, Ethereum’s fee reduction mechanism, introduced in The Merge upgrade, continues to operate, reducing the overall supply of Ethereum. “This steady burn of Ethereum continues, further supporting a potential increase in value,” adds Sassano.
The bear affair
Although Sassano is optimistic about Ethereum’s potential, he acknowledges the possibility of slowdowns. He argues, however, that a bearish scenario for Ethereum seems explicitly less likely given the positive catalysts on the horizon. Instead, a bearish scenario would likely be linked to broader market conditions or increased regulatory oversight.
“I don’t think there’s really a bear case for Ethereum or ETH right now, given all the positive catalysts ahead,” Sassano said. “The bearish scenario for crypto as a whole would be more about a shock to the macroeconomic environment or a worsening of regulatory pressure that we have already seen on crypto.”
In the long term, Sassano identifies potential factors that could hinder Ethereum’s growth. “If we think about a bearish scenario for Ethereum over the next five to ten years, it would be Ethereum failing to continue growing; its product-market fit turns out to be only niche; and being hampered by regulations, particularly at points of entry,” he says. This could involve stricter regulation of fiat currencies’ engagement with Ethereum, or even stricter regulation of stablecoins more generally.
Sassano points out, however, that this scenario seems relatively unlikely. “I obviously give very little chance of that happening,” he adds. While it is essential to consider all possibilities in the unpredictable world of cryptocurrencies, the current landscape suggests a more positive outlook for Ethereum.