Ethereum Predictions: Will Ethereum Price Break $4,000 in 2024?
Christian Cochinto
May 17, 2024
Ethereum’s outlook is less optimistic than it was at the start of the year, with the possibility of a delay in the approval of an Ethereum exchange-traded fund (ETF) by the Securities and Exchange Commission. Here are the latest Ethereum predictions for 2024 and the future of Ethereum.
The Ethereum/US Dollar (ETH/USD) price has had a turbulent journey throughout the second quarter of 2024, marked by significant ups and downs. After gaining 60% in the first quarter and testing the $4,000 levels, the beginning of the second quarter brought a correction towards the $3,000 levels.
The long-awaited Bitcoin halving, the Shapella upgrade followed by the Dencun upgrade in March, and expectations of Fed rate cuts have boosted the crypto market through late 2023 and early 2024. However, with enthusiasm fading and Ethereum funds launch approvals delayed, ETH/USD is trading at a key juncture.
Will Ethereum survive a retest of the $3,000 support level after hitting a near all-time high in March?
In this updated Ethereum predictions guide, let's delve into what 2024 might hold for Ethereum, learn about the future of Ethereum, and assess whether it will maintain its momentum in the coming years.
Ethereum Predictions 2024 & Ethereum Future – Key Takeaways
Ethereum Price Prediction Today: The bearish move tested the prevailing uptrend and the 50% Fibonacci retracement level, suggesting that the pattern may resolve to the upside by the end of Q2.
Ethereum Predictions 2024: While the average consensus for Ethereum price ranges from a conservative estimate of $2,500 to $4,000 during the year, some still expect the Cryptocurrency Futures Exchange (CET) approval and updates to be included in the price.
Ethereum Future 2025-2030: Many veteran analysts and market experts are very bullish on Ethereum and maintain positive long-term forecasts, expecting the price of Ethereum to reach $40,000 by 2030.
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Ethereum Predictions: Fundamental Forecasts
Ethereum’s momentum in Q1 2024 promised continued growth, supported by historical trends and positive analyst forecasts. However, regulatory uncertainties, particularly surrounding the approval of an Ethereum exchange-traded fund, have posed obstacles to its upward trajectory.
The trend in 2024 was expected to be in the bullish phase that the crypto market had been waiting for since June 2022. Along with the rest of the market, Ethereum was also expected to see an upward trend due to one factor – the recent approval of spot Bitcoin ETFs. As Bitcoin is expected to target its all-time highs in 2024 amidst potential interest from institutional investors, Ethereum is expected to play its role as the “silver to gold” and will likely push other altcoins higher as well.
Asset managers are already watching Ethereum ETFs, and this clearance would set a precedent for them as well. Three other investors have already applied for a spot Ethereum fund: VanEck, ARK Invest, and BlackRock.
However, delays or regulatory hurdles in the process have disrupted the market and created uncertainty. Contributing to the range of speculation are different views from industry professionals. While at the beginning of the year there was a 70% chance of an Ethereum fund being approved in May, there is now a more negative outlook, with the probability dropping to just 25%. The doubts are rooted in the absence of data from the SEC, which points to a bleak outlook for the approval process.
The risk that the SEC poses to ether prices is twofold:
The commission continues to receive ETH tokens classified as securities.
Additionally, regulators may delay approval of an Ethereum fund for Wall Street investors.
This is a big problem because VanEck believes that Ethereum funds could outperform the Bitcoin fund once they are approved.
Meanwhile, the Securities and Exchange Commission is “actively pursuing a legal campaign to classify Ethereum, the second most popular cryptocurrency, as a security,” according to the latest crypto news.
The commission has issued subpoenas to a number of companies to investigate their dealings with the Ethereum Foundation, sparking speculation that the SEC will prosecute acquisitions of Ethereum tokens classified as securities.
Developments related to this possibility represent a continued risk to Ethereum long positions and headwinds for asset prices, leading to less bullish revisions to Ethereum forecasts and price predictions for 2024.
This seems to be one of the driving factors behind the bullish Ethereum forecast for Q2 2024.
Cryptocurrency Predictions September 2024
SEC Delays Ethereum Fund Launch
The trend in 2024 was expected to be in the bullish phase that the crypto market had been waiting for since June 2022. Along with the rest of the market, Ethereum was also expected to see an upward trend due to one factor – the recent approval of spot Bitcoin ETFs. As Bitcoin is expected to target its all-time highs in 2024 amidst potential interest from institutional investors, Ethereum is expected to play its role as the “silver to gold” and will likely push other altcoins higher as well.
Asset managers are already watching Ethereum ETFs, and this clearance would set a precedent for them as well. Three other investors have already applied for a spot Ethereum fund: VanEck, ARK Invest, and BlackRock.
Post-merger mutation
Ethereum founder Vitalik Buterin has confirmed that the Ethereum blockchain is currently only 55% complete, indicating that there is a big journey ahead of us. After the merge, we will see a major network upgrade that will move Ethereum from a Proof-of-Work (PoW) protocol to a Proof-of-Stake (PoS) consensus mechanism. Buterin outlined the following four phases: The Surge, The Verge, The Purge, and Spluurge. The first phase, The Surge, will bring the sharding process to Ethereum.
Sharding is a key scalability solution for the Ethereum network, aiming to enhance the network’s ability to process transactions and execute smart contracts. This involves dividing the network into smaller, manageable chains known as shards.
These shards act as individual components within the Ethereum network. Each shard operates as an independent blockchain with its own set of smart contracts. These chains operate independently, and can process transactions and execute smart contracts, relieving congestion on the main Ethereum network.
The primary goals of Ethereum developers through the sharing update include: