YEREVAN (CoinChapter.com) — Ethereum (ETH), the second-largest crypto by market capitalization, is poised for a massive rally this year. According to one crypto analyst, Ethereum’s price can hit $10,000, with a more optimistic target being the $15,000 mark.
I am Crypto Wolf, who boasts over 103,000 followers on X (formerly Twitter) and made this prediction based on current ETH price charts.
Here are three reasons that could see Ethereum reach the estimated price of $10,000 in 2024.
1. Technological upgrades on the Ethereum network
Ethereum’s transition to a Proof-of-Stake (PoS) model and its subsequent implementation of the Shanghai upgrade in early 2023 saw significant network infrastructure improvement.
While these upgrades helped consolidate Ethereum’s position in the ever-growing competitive cryptocurrency market, the network’s team has more upgrades ahead.
According to JPMorgan analysts, the upcoming EIP-4844 upgrade, Proto-Danksharding, will help Ethereum outperform Bitcoin.
“We believe Ethereum will re-assert itself and recapture market share within the crypto ecosystem. The main catalyst is the EIP-4844 upgrade or Protodanksharding, which is expected to take place during the first half of 2024. We believe that this upgrade will likely prove a bigger step towards improving Ethereum network activity, thus helping Ethereum to outperform,”analysts at JPMorgan stated in their crypto outlook for 2024 last month.
At the time of writing, Ethereum exchanges hands a little above the $2,200 mark, having dropped from its recent high of $2,600.
2. ETH market dominance over other chains
Several blockchain networks have sprung up over the years, each looking to gain a market share with several competitive offerings. However, according to a recent report by the ETC Group, Ethereum continues to maintain its dominance in the market.
As per the findings of the crypto firm, developers continue to opt for Ethereum when launching decentralized applications, DeFi products, and nonfungible token (NFT) collections.
“According to data provided by blockchaincenter.net, Ethereum is still the most dominant smart contract platform by far commanding 58.5% of the market cap, followed by Binance’s BNB token and Solana which only account for 8.5% and 6.6% of the total market cap, respectively,”the bank said in its Crypto Market Outlook for 2024
Moreover, the massive dominance of Ethereum’s ERC-20 tokens in terms of the total market cap against competitors like Binance’s BRC-20 tokens is another indicator of the network’s market superiority.
As the report indicates, the value of Ethereum stablecoins, which include Tether (USDT), USD Coin (USDC), or Dai (DAI), accounts for 51% of the current total stablecoin market cap.
This indicates that the network will be at the heart of blockchain development. This will keep its native token in demand, pushing Ethereum’s price towards $10,000.
Moreover, growing excitement around Ethereum ETFs, once the market recovers, will further sustain a bullish trend in ETH price in 2024.
3. Growing Institutional Interest
According to analysts, there is a rising institutional interest in Ethereum, which can help ETH hit $10,000 in 2024.
The fact that the SEC, notorious for cracking down on cryptocurrencies, does not consider Ethereum a security akin to Bitcoin draws big names to it. Major financial institutions usually avoid tokens that could face the regulatory hammer. For ETH, that danger doesn’t exist, at least now.
Moreover, the potential introduction of Ethereum-related funds by major financial institutions like BlackRock further underscores this growing interest.
The recent approval of the first spot Bitcoin ETF in the US by Gary Gensler-led SEC has opened the gates for the future approval of Ethereum ETFs.
Additionally, the general expectations of a crypto bull run in 2024 could become catalysts for ETH price to reach $10,000 this year.