Ethereum has gained 5.70% to $2360, approaching this year's highs around $2400. Currently, Ethereum's price is already above the highest daily close of the year. The rise is driven by generally positive sentiment in global markets and the cryptocurrency market. After recent strong gains in Bitcoin, attention is now shifting to Ethereum, which had previously lagged behind other major projects.
Below, we present the most important conclusions from analytical think tanks in the cryptocurrency sector, which have presented their forecasts for the year 2024.
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In 2023, Ether significantly underperformed compared to Bitcoin, despite gaining 89% in USD value. This underperformance was influenced by several factors, including Bitcoin-specific news that drove its prices higher and a lack of on-chain activity on Ethereum, which led to reduced demand for gas. Additionally, Ethereum faced unexpected competition from Bitcoin as Ordinals emerged, occasionally surpassing Ethereum NFTs in weekly trading volumes.
VanEck Report
Looking ahead to 2024, Ethereum is not expected to surpass Bitcoin but is predicted to outperform every mega-cap tech stock. Bitcoin's clearer regulatory status and energy intensity are likely to attract interest from quasi-state entities in regions like Latin America, the Middle East, and Asia, with countries like Argentina potentially joining others in state-sponsored Bitcoin mining. Bitcoin is anticipated to lead the market rally, with value flowing into smaller tokens post-halving. Ethereum may start outperforming Bitcoin after the halving but won't achieve a "flippening." Despite a strong performance, Ethereum is expected to lose market share to other smart contract platforms with clearer scalability roadmaps, such as Solana.
Ethereum Price Action
Looking at the chart, we can notice a dynamic rebound in the second-largest cryptocurrency after testing the first support zone around $2130. Since then, ETH prices have been rising steadily, and after a brief correction in recent days, today's prices are breaking above the $2300 level and heading towards the $2400 area, where the nearest resistance level is located.
Source: xStation 5
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