Ethereum Rally: Crypto Analysts Outline 3 Key Drivers For Price Rise
Many crypto analysts predict a price surge for Ethereum (ETH), the second-largest cryptocurrency, as bullish momentum sweeps the market in the coming months.
Various factors are responsible for this Ethereum price increase prediction. The growing stipulation for DeFi applications running on the Ethereum blockchain has led to a surge in ETH demand. The DeFi platforms provide different types of financial services and yield farming that necessitates users to hold and use ETH as the main currency.
Also, the upgrade to Ethereum 2.0, scheduled to increase scalability and minimize transaction fees, has been highly anticipated by investors. The upgrade will shift Ethereum from the PoW consensus mechanism to the PoS, which is more environmentally friendly. Such an expectation of these enhancements made many investors believe that the currency value will rise considerably.
Besides, institutional interest in cryptocurrencies is steadily increasing. Awareness among top financial industries and their companies is growing in the potential of digital assets, such as Bitcoin and Ethereum, as alternatives to investments or stores of value.
Ethereum Will Skyrocket Soon!
Altcoin Daily analysts highlight multiple factors that could boost ETH prices in the upcoming months. The analysts expressed optimism for ETH in a recent YouTube episode titled -Ethereum price set to explode.
Ethereum may hit $4,000 within three to six months, as per Altcoin Daily analysts. They attribute the price rise to the upcoming "Ethereum Beacon Upgrade."
The Canonical Ethereum upgrade is a highly touted event among the crypto community. It aims to address scalability and efficiency issues the present Ethereum network is facing.
Based on what the Altcoin Daily analysts say, this change will boost the network’s capacities and attract more investors to the platform. The switch to PoS allows users to stake their Ethereum (ETH) holdings, earning rewards for validating and securing the network. The switch would most likely reduce energy consumption and fees, making transactions faster.
The more people hear about the Ethereum Beacon Upgrade, the more interest and excitement among investors will be. Such heightened attention could also trigger an increase in demand for ETH tokens, pushing up the value in the market.
The video emphasized that the final crucial ETH update will launch in Q1 2024. The aim is to reduce fees and enhance layer II efficiency. The Ethereum Beacon upgrade also improves user experience. Its final test is in February. The roll-out will go live in just one month.
The second key factor is the hype around Ethereum Spot ETF approval. One analyst clarified about the ETH spot ETFs anticipation.
Despite the global permission for Ethereum futures, analysts note that ETF approval may impact long-term price growth.
The anticipation concerning the approval of Ethereum Spot ETFs is a powerful catalyst worth noting. Similar to the Bitcoin scenario, the launch of ETFs for Ethereum will also let institutional players utilize Ethereum in their investment portfolios.
Ethereum Spot ETF would, in essence, be shares in a fund with physical Ether, the native cryptocurrency of the Ethereum blockchain, in it. That would represent a more regulated and even traditional investment vehicle for those who are cautious or figuratively unable to invest in cryptocurrencies directly.
The ETF of such a kind has triggered immense hype among the crypto community and beyond. Some think it would be accompanied by a spike in demand for Ether, thus pushing up its price. Even the mere expectation has fueled some price reactions in the market as traders and investors try to position themselves before any good news.
Moreover, an Ethereum Spot ETF could also add liquidity and stability to the whole crypto market. It would invite more institutional investors who had been waiting on the other side for regulated investment products.
The Shift From Bitcoin to ETH is Notable!
Experts predict the price to reach $4,000 if approved, mirroring excitement for Bitcoin ETFs in 2023. They said the US SEC cannot disapprove ETH ETFs because of BTC ETF approval.
If correct, ETH is nearing the mentioned price. The ETF's approval deadline is in just 112 days.
Altcoin Daily also emphasized Bitcoin's rotation towards the rest of the ecosystem after halving. Experts expect a Potential fund shift from BTC to ETH after the Bitcoin halving event.
Investors move toward the rest of the crypto sphere following the Bitcoin halving event is a significant crypto industry development. The stress laid by Altcoin Daily on this change reveals the increased awareness of the altcoins, or alternative cryptocurrencies, as good investment opportunities.
The Bitcoin halving occurs every four years, cutting the speed at which new Bitcoins get created. This scarcity is often the main factor responsible for an increase in demand and a rise in the price of Bitcoin. But experts assert that following that halving, some investors might diversify their portfolios and look into other promising cryptocurrencies like Ethereum (ETH).
Such remarkable attention has been received by Ethereum, adding the ability of smart contracts and the ability to host DApps. Thanks to its big developer community and many projects developed and deployed on its blockchain, Ethereum proposes various opportunities for development and innovation.
Altcoin Daily noted a potential sell-the-news scenario after the halving, causing a cooldown. Ethereum could benefit and dominate the crypto market as a result.
Ethereum is trading slightly above $2,300, showing a 1.23% increase in the past 24 hours. The market cap is increasing, and the trading volume is up by over 41% in the past day.
The latest events have become a good sign for Ethereum in the crypto market. The fact that it is fetching slightly above $2,300 proves an increasing price rise, thus improving investor confidence. A 1.23% growth for the past 24 hours is another step of the uptrend.
Also, a growing market cap is an encouraging sign for Ethereum. With more capital starting to flow into Ethereum, the market cap also increases. It implies that the popularity and adoption of Ethereum are soaring. So, the possibility of drawing more institutional investors and traditional financial institutions increases.
Additionally, an extraordinary spike in trading volume by over 41% within a day underlines an increased activity and interest in Ethereum. High trading volume often reflects more liquidity in the market. Also, the participation of traders contributes to price stability and enhanced market efficiency.
Possible drivers for the observed positive indicators are diverse and can be Ethereum development news, upgrades to its network, or simply an upward trend in cryptocurrencies.
