Some prominent cryptocurrency industry analysts expect Ethereum (ETH), the second-largest cryptocurrency asset, to see a price surge in the coming months as the market experiences a wave of bullish momentum.
Ethereum is poised to go parabolic in the coming months
Cryptocurrency analysts at Altcoin Daily have identified three main factors that could affect the price of Ethereum in the coming months. Analysts shared their bullish views on ETH in a recent YouTube episode: “Ethereum Price Still Ready to Explode.”
According to analysts at Altcoin Daily, the price of Ethereum is expected to reach $4,000 in the next three to six months. Analysts note that one of the main factors driving the price to this level is the upcoming “Ethereum beacon upgrade.”
In the video, they highlighted that the update is the last big update for ETH, which is scheduled to launch in the first quarter of 2024. Its main goals are to reduce transaction fees and increase the efficiency of the second-tier solution.
Additionally, the Ethereum Beacon update promises an improved user experience. This is an important step forward towards creating a more accessible and scalable blockchain network. They noted that the final test network of the update should take place on Wednesday, February 7th. Meanwhile, there is only one month left until the full deployment of the main network.
Experts identified the buzz surrounding the approval of spot Ethereum exchange-traded funds (ETFs) as a second key factor. “I want to be clear: the catalyst we are talking about is the anticipation of spot ETH ETFs,” said one analyst.
Although Ethereum futures have already received global approval, analysts note that the approval of ETFs could be an important driver for long-term growth in Ethereum prices.
Noticeable transition from Bitcoin to ETH
According to experts, the anticipation of its potential approval is expected to push the price of ETH to $4,000, which is akin to the Bitcoin ETF frenzy in 2023. In addition, they emphasized that the approval of the BTC ETF is one of the reasons why the US Securities and Exchange Commission (SEC) cannot reject the ETH ETF.
If this is the case, then ETH is very close to reaching the above price level. This is because the ETF's final approval date is just 112 days away.
Meanwhile, the final key factor noted by Altcoin Daily is “Bitcoin’s post-halving rotation relative to the rest of the ecosystem.” Following the upcoming Bitcoin halving event, there may be a rotation of funds from BTC to ETH.
Altcoin Daily also mentioned a possible scenario of selling news after the halving, which could lead to a cooldown. As a result, Ethereum can take advantage of this and become a dominant player in the cryptocurrency market.
Ethereum is currently trading just above $2,300, indicating an increase of 1.23% over the past 24 hours. Its market capitalization has seen similar growth, with trading volume up more than 41% over the past day.
ETH is trading at $2,319 on the 1D chart |Source: ETHUSDT on Tradingview.com.