Ethereum (ETH), the second-largest cryptocurrency by market value, shows no signs of reaching a new all-time high by the end of 2024. Some analysts believe it is possible, but current market conditions and competition from tech stocks hinder Ether from surpassing its previous peak.
Ether Faces Strong Competition
Since the beginning of 2024, there has been no significant rise in Ethereum’s price. As of September 6, ETH is trading at $2,352, marking a 3% increase compared to the beginning of the year. In contrast, tech stocks like Nvidia and Meta Platforms have gained significantly; Nvidia rose by 122%, and Meta by 50%.
Despite these figures, some investors believe a sudden increase in Ether’s price is imminent. Derive’s founder Nick Forster noted that Ethereum struggles to develop a strong narrative to drive a significant price increase.
“Currently, Ethereum lacks a strong narrative to boost its price, especially compared to other assets,” said Forster.
Ether-based exchange-traded funds (ETFs) launched on July 23 attracted more interest on Wall Street but put Ether in direct competition with tech stocks. Although ETFs have garnered interest, their returns have not been very attractive so far.
Forster emphasized that for Ether to surpass its all-time high of $4,891, three significant events must occur simultaneously: Donald Trump winning the 2024 US presidential election, the Federal Reserve making aggressive rate cuts, and an increase in global liquidity. However, options markets estimate only a 10% chance of Ether reaching these levels by the end of the year.
Impact of US Elections on Ethereum
The upcoming US elections could add another layer of volatility for Ethereum. According to Forster, the election could be the “most significant event” in Ethereum’s history, even more important than spot ETFs. Investors predict that Ethereum’s daily price movements could increase from 2.5-3% to 3.5%.
Amid these predictions, some investors remain optimistic about a potential price increase. An investor known as Titan of Crypto noted that Ethereum’s relative strength index (RSI) is approaching the oversold region, which usually triggers either a rally or a short-term price increase.
While the likelihood of Ether breaking its all-time high in 2024 remains uncertain, key financial and geopolitical events could shift market dynamics and trigger volatility in the coming months.
