Cryptocurrency analyst Juan Leon from Bitwise suggests that Ethereum (ETH) is on the cusp of a significant price rally that could see its value double to surpass $8,000 or even reach $10,000 in 2024. Despite Bitcoin‘s dominance in the news, Ethereum’s upcoming updates and the prospect of spot ETFs in the US have set the stage for potential growth.
Ethereum’s Upcoming Upgrades May Propel Price Increase
Ethereum’s anticipated Dencun update, scheduled for this month, is expected to cut costs for Layer 2 network transactions, boosting network efficiency and attracting consumer interest. Alongside the technical upgrade, the potential launch of spot Ethereum ETFs in the US adds to the momentum, with the SEC slated to review these ETFs in May. Leon assigns a 50-60% probability to their approval, positing that it’s a question of when, not if, they will be greenlit.
The introduction of spot Ethereum ETFs could mirror the success of Bitcoin ETFs which garnered $9 billion in net inflows, appealing to a conservative, institutional investor base. This shift could drive significant demand for Ethereum, further fueling its price growth.
Supporting Views and Market Trends
Bernstein, a notable brokerage firm, echoes Leon’s bullish sentiment on Ethereum, citing factors such as deflationary supply, a staking boom, and increased DeFi activity. Ethereum traditionally trails Bitcoin in reaching peak prices, but tends to follow in a robust rally once Bitcoin has set new highs. With Ethereum already seeing a 3.41% rise in 24 hours to $3,900 and outperforming Bitcoin’s 1.72% gain, the stage is being set for its ascent.
Ethereum’s potential growth is buoyed by historical patterns in the cryptocurrency market, where Bitcoin leads in recovery, with Ethereum and other altcoins following suit. As Bitcoin approaches its all-time high, Ethereum is expected to witness a months-long rally reaching new records.