The cryptocurrency market has seen tremendous growth this year despite the challenging inflation pressure that happened in 2022. Bitcoin, the pioneering digital currency, has been on an ascending path, and there are many exciting events that investors are excited about, particularly the halving, which is expected to trigger a bull run. But there’s another digital asset that is raising investors’ interest, namely Ethereum, which is now worth $3,430 per coin – a substantial increase from $1,800 a year ago. Now, even if the Ethereum price chart makes investors enthusiastic, it’s a well-known fact that past performance doesn’t guarantee future results. And yet, Ethereum seems to have some groundbreaking moves up its sleeve, and it could continue its market-beating surge this year and beyond. If you’re curious to know where Ethereum is headed next, keep reading!
ETFs are a strong catalyst for the crypto market’s long-term growth
The first batch of 11 spot BTC ETFs enabled other types of crypto funds and investing firms have already filed applications to the SEC since January for the introduction of Ethereum-based ETFs. However, Ethereum ETF sponsors don’t seem to rush it, as they gave the approvals a 50% chance in May 2024, although they stated there could be a delay for December. Why is that so? Well, investors are still trying to comprehend the implications of the brand-new Bitcoin ETFs, and launching ETFs for another major cryptocurrency could turn out to be counterproductive.
TradFi is currently trying to get comfortable with Bitcoin, and it will take some time until it fully embraces it. Only then will it likely be ready for the next thing, so it’s not a good idea to compel traditional finance to accept Ethereum ETFs way too early. Once the Bitcoin furor diminishes, launching Ethereum ETFs in the market could lead to the same trends that the leading crypto has experienced for a while.
In short, when it comes to the approval of ETFs, timing does matter, and it could make a difference in the market, especially in the beginning. Once Ethereum goes through the growing pains of a brand-new investing avenue, the long-term implications could be fantastic, resulting in a more robust asset class that boosts access for investors who can’t buy crypto directly.
Ethereum is continuing its journey towards building a more effective network
While the Ethereum community may not have any control over the ETF approvals, things are different when it comes to technical improvements within the Ethereum network, which represent another major price catalyst. An essential upgrade ( known as Dencun) already took place on March 13, introducing shard blob transactions with the aim of speeding up processing and decreasing transaction fees, which are other small steps designed to make the Ethereum network more robust and effective.
Ethereum enthusiasts will see other upgrades unfold throughout 2024 as Vitalik Buterin has carefully designed Ethereum’s roadmap. The next development phase that everyone has their eyes on is” The Purge,” which is designed to clean out some obsolete security functions to offer more space for transaction data. It will be a slow and steady process, and the final cleanup will take place a few years down the line.
There are many exciting changes that will take place on Ethereum’s operating platform, with some coming up soon and others later in the future. However, a notable aspect here is that Ethereum is seeking to meet the requirements of a more crowded market, with a focus on making smart contracts cheaper, smarter, and more secure and staying competitive against alternatives like Solana or Avalanche.
Could these major catalysts drive the price of Ethereum to $10,000 by the end of the year?
The approval of Ethereum ETFs and the technological improvements within the Ethereum network are two that are generating a lot of excitement among enthusiasts, and naturally, they are wondering how they could influence the price of ETH. Is it possible for Ethereum to reach a $10,000 milestone in 2024? There is a chance it could, but there are no specific scenarios. The crypto market is volatile, so it’s better not to make time-limited bets on the price of Ethereum and, instead, focus on building a diversified portfolio which includes robust cryptocurrencies, stocks and even other asset options.
It’s also a good idea to let the portfolio’s collection value rise at its own pace instead of trying to rush the process. Ultimately, investors should remember that investing is not a sprint but rather a marathon, and throughout this process, patience is paramount—it is a virtue that will prove to be more beneficial than throwing value darts at the calendar.
Keeping a long-term perspective is the most helpful approach for investors, allowing them to remain focused on their goals and not make any rushed decisions, which is ultimately the key to long-term success.
The bottom line
There is no doubt that Ethereum’s value will grow in the following years, and we could see a substantial increase in price in 2024 as well, but no one can estimate whether it will achieve a milestone by a specific period of time (as you probably know, that’s just not how things work in the crypto landscape).
To find out how things will unfold in the Ethereum ecosystem, investors should keep an eye on the news to ensure they can quickly adjust their strategies based on the latest developments and, thus, take advantage of any arising opportunity. While it’s important to be prepared for a potential bull run, it’s equally essential to have a plan that allows you to mitigate risks as much as you can because the crypto market is a wild ride, and you never know in what direction it could go. In other words, be prepared for anything, and most importantly, remember to practice discipline. What does practicing discipline mean? It means resisting emotional investing, adapting, and rebalancing. If you want to stand a chance at crypto investing, don’t seek immediate gratification – instead, stay committed to your financial goals and always make informed choices. This will help you navigate the complex world of cryptocurrencies with more confidence and clarity.
