Ethereum is going steadily above $2,300 at the time of drafting this article. More specifically, the token is exchanging hands at $2,309.65, increasing to 0.705 in the last 24 hours. It further marks a jump of 0.30% and 3.63% in the last 7 and 30 days, respectively. ETH surpassing $2,300 was a rare feat in recent days.
The community now speculates that that could be a thing of the past. The token is being teased to surge by almost twice in the coming months of this year, that is, in 2024.
Why is Ethereum price set for a 2x surge in the coming months?
Three factors could be coming into play as the year 2024 progresses. These are Ethereum Beacon, Spot Ethereum ETF, and fund rotation.
For starters, the Ethereum Beacon upgrade is imperative to the ecosystem, irrespective of what it does to the trading value. The upgrade aims to reduce the transaction cost and enhance the efficiency of L2 solutions. The rollout to the mainnet is tentatively scheduled to happen next month. The team has defined it as a crucial step toward making its blockchain network more accessible and scalable.
Next, the approval of Spot Bitcoin ETF has paved the way for more crypt-oriented ETF applications to enter the market. Ether ETF is one of the most anticipated applications. Members are confident that the Commission will give a green signal in the next 112 days, enabling financial platforms to list the product for trading purposes. Analysts have suggested that the approval of Ether ETF will fuel up the price to $4,000.
Finally, fund rotation from Bitcoin Ethereum will cool down for a few days, but then it will uptick in trading value. Fund rotation is likely to happen after Bitcoin’s halving event. It just remains to be seen if Ether ETF will gather better momentum than Bitcoin ETF. BTC traded at a higher value of $47,000 but then dropped to $40,000 and is now at $42,699.60.
All the factors combined will form a supportive ground for a significant surge in the value of Ethereum.
Surge in Ethereum’s staking ratio
The surge is at 24%, with an increase still in progress. This has contradicted multiple opinions that estimated the token would lose its value. The Shapella upgrade was activated in April 2023, enabling users to withdraw their staked funds. Many had said that the crypto market would encourage them to make withdrawals. That did not happen, and the majority of the holders expressed their bullish sentiments.
Later, the staking ratio for Ethereum reached 24%. The aggregated volume is estimated to touch $72 billion with an APY of ~4.25%.
It is interesting to note that the launch of Shapella intersected the time window when the crypto market was bearish. Traders had their sights set on ETH, which was dancing between $2,000 and $2,100. Withdrawals were obviously a natural option.
Ki Young Ju, the founder and chief executive officer of the foremost on-chain analytical firm CryptoQuant, commented on the development of Ethereum (ETH) staking. He acknowledges that his assessment of the effects of the Shapella hard fork was incorrect. The staking ratio of Ethereum (ETH), defined as the fraction of ETH coins locked in staking, hits 24% and continues to surge, according to data supplied by Ki Young Ju. A mere 11% of the total supply of ETH is currently held in centralized exchanges. Additionally, he asserted that Staked Ethereum (ETH) yields the greatest profit margins.
Ethereum price forecast for 2024
Volatility is far from leaving the crypto sphere. So, ETH will continue to experience fluctuations in the months to come. Assuming everything plays out well, the token will surpass the milestone of $4,700 by the end of this year. Ethereum price prediction estimates that an alternative milestone of $5,000 is also achievable.
Eager anticipation remains grounded in the approval of the Ether Spot ETF by the US Securities and Exchange Commission.
Ethereum is poised to surge by two times in the coming months of 2024. However, it depends on how well Ethereum Beacon and Spot Ether ETF happen. Also, fund rotation will happen around the time when Bitcoin halving takes place. The road for Ethereum in 2024 is uncertain as the community keeps its bullish sentiments intact.