In the world of cryptocurrency, Bitcoin (BTC) has dominated headlines in recent months, but according to Juan Leon, a crypto research analyst at asset management firm Bitwise, Ethereum (ETH) could be ready for significant growth by 2024. Leon suggests that ETH’s price could double from its current levels and potentially exceed $8,000 or even $10,000 this year.
Two Catalysts That Could Boost Ethereum’s Price
While Bitcoin has attracted attention with the launch of spot ETFs in the US, Ethereum has remained in the shadows. Leon lists two key catalysts for a potential price increase of ETH to $8,000 or even $10,000 this year. The first catalyst he mentions is the planned Dencun update this month, which aims to make transactions on Layer 2 networks cheaper. The update is expected to increase network efficiency and attract mainstream consumer demand for Ethereum.
As a second catalyst, Leon points to the excitement surrounding spot Ethereum ETFs. The US Securities and Exchange Commission (SEC) is expected to make a final decision on spot Ethereum ETFs in May. Although Leon admits that the likelihood of approval is less clear compared to spot Bitcoin ETFs, he still gives it a 50-60% chance and emphasizes that it’s only a matter of time.
The potential approval of spot Ethereum ETFs is expected to significantly increase Ethereum’s appeal among conservative, institutional investors and draw a strong demand similar to that seen with the launch of spot Bitcoin ETFs, which attracted about $9 billion in net inflows earlier this year.
Bernstein Also Expects a Rise in ETH
Furthermore, a recent report from leading brokerage firm Bernstein points to various factors supporting a bullish outlook for ETH, including deflationary supply, a staking boom led by EigenLayer, and increased decentralized finance (DeFi) activity.
Although Ethereum has lagged behind Bitcoin in reaching all-time highs, historical models show that BTC typically leads the market’s recovery, with ETH and other altcoins following suit. As Bitcoin approaches and surpasses its all-time high (ATH), ETH could start a rally lasting several months to reach new peaks.
Current data shows ETH has risen 3.41% in the last 24 hours to trade at $3,900. In the same period, Bitcoin has seen a smaller increase of 1.72%, showing a lower performance compared to the altcoin king.
