Even though the BTC price dips below $46,000, the long-term demand period has begun, and as ETFs are traded, growth should continue. Therefore, it seems sensible to focus on developments this year and the increasing growth through ETFs rather than short-term fluctuations. Moreover, the same scenario could happen to Ether by the middle of the year with the launch of spot ETH ETFs.
Ethereum 2024 Forecast
ETH price was at $2,670 at the time this article was prepared. We mentioned that before the ETF approval, ETH price was preparing for a significant rise in BTC parity and could rise to $3,200 within a few months. Now, despite many setbacks, the approved spot BTC ETF is causing ETH price to increase. There are two main reasons for this, aside from general market sentiment such as interest rate cuts and halving events, specific to ETH.
- The upcoming Ethereum update will reduce fees and improve performance. Therefore, ETH L2 solutions should continue to grow.
- Decisions on spot ETH ETFs are expected by the middle of this year, with giants like BlackRock already expressing optimism about approval. Fidelity is not leaving the $10 trillion asset manager alone in this regard.
ETH staking revenues will take the appetite for ETF issuance to a different level, and we can see that staking protocols will also benefit from this. Long-term investors will be attracted by ETFs that return a significant portion of staking income.
Ethereum Price Prediction
Weekly chart readings indicate that the price has been weak but steadily increasing since May 2022. ETH was trading below the resistance area of $2,410 and the rising resistance trend line during this period, but this week the situation changed.
After four unsuccessful attempts, this week ETH broke through the critical region and saw a peak of $2,689. This means the 600-day trend line has finally been breached. The weekly RSI and fundamental analysis support the rise. If ETH’s increase continues, the nearest resistance area will be 35% above the current price, between $3,340 and $3,500.
If the scenario of closing below the trend line begins, ETH could fall to $2,000. However, for this to happen, the SEC needs to make clearer statements regarding ETH being a security.
