Ethereum (ETH) has historically mirrored Bitcoin‘s price movements, yet in 2023, it has lagged behind other strong Layer-1 competitors like Solana, Polkadot, and Chainlink. This has sparked debates about Ethereum’s future and its ongoing relevance in the crypto market.
Despite speculations, some crypto analysts had predicted ETH could reach $3,500 by year-end. Crypto analyst Michael van de Poppe weighed in on the discussions, asserting that Ethereum’s significance will not diminish but will strengthen due to several factors.
Van de Poppe highlighted Ethereum’s transition from Proof of Work (PoW) to Proof of Stake (PoS) as a focal point of interest. However, the real effects of this transition are yet to be fully understood. He believes that if the ecosystem’s fundamental growth continues, Ethereum could potentially become more attractive than Bitcoin in the coming year.
Additionally, Ethereum, like Bitcoin, is awaiting a potentially valuable Spot ETF process. If realized, this could include decentralized applications (dApps) built on Ethereum into ETFs, potentially increasing interest in the platform.
The analyst also pointed out the cycle of money flow, noting that Bitcoin typically gains attention before a halving event. Following this cycle, the approval of Bitcoin ETFs could create a positive sentiment in the market, which might benefit Ethereum as one of the first altcoins to capitalize on the increased market value.
Van de Poppe also mentioned that Ethereum has historically outperformed Bitcoin in the first quarter of the year. He suggested that with the focus shifting to Bitcoin due to ETF speculation, Ethereum’s recent underperformance is a natural price movement. He speculates that Bitcoin’s price could settle between $48,000 and $51,000 upon ETF approval, with Bitcoin dominance likely peaking before the halving.