In the virtual world, people typically discuss the most popular and trending cryptocurrency, Bitcoin, but they also have an interest in Ethereum, which is considered the second-largest cryptocurrency in the world. It's obvious that ETH is overtaken by the popular cryptocurrency BTC, but is it truly capable of competing?
Ethereum (ETH) Recap
Ethereum is the cryptocurrency used within the Ethereum network, which is known for its smart contract functionality. Ethereum was listed in 2015 at around $2.79, it was not until 2016 that the crypto saw significant increases up to $10. The Ethereum price then continued to increase to nearly $1,400 in 2018 before experiencing a bear market in 2019 that returned it to around $100.
However, the market boom in the period 2020 – 2021 drove the price of Ethereum to over $4,500, driven by increased interest in decentralized finance (DeFi) and non-fungible tokens (NFTs). Ethereum's price experienced volatility throughout the year, influenced by market speculation, regulatory developments, and technological advancements within the Ethereum ecosystem. A new stock market crisis disrupted the market in 2022 by bringing the ETH price below $1,500.
In 2023, Ethereum's price was influenced by the ongoing transition to Ethereum 2.0, as well as macroeconomic conditions, technological advancements, and regulatory developments impacting the cryptocurrency market.
Ethereum (ETH) 2024 Predictions
On March 12, Ethereum overtook the $4,000 mark, reaching a maximum of around $4,066, which is the maximum of its recent uptrend. However, it began to decline, dropping to $3,158 by March 20th. After that, it increased in value, reaching $3,695 by April 9th.
Despite the potential for additional gains, a significant drop in value began, which suggests that Ethereum is entering a transitional phase.
This drop could suggest the end of a correction, with its recent price increase potentially starting a new uptrend. Alternatively, the recent price increase may be a response to the oversold conditions indicated by the daily chart's relative strength index.
The probability of a long-term recovery and continued progress is significant.
LongForecast estimated that ETH would cost $4,531 by the end of 2024. However, CaptainAltCoin predicted that the coin would reach $4,181.77 by December. Meanwhile, DigitalCoinPrice’s price for Ethereum is predicted to be $6,390.30 this year.
Conclusion
Ethereum is a viable currency, but be aware of the crypto market's extreme volatility. This is why you should never spend more than you can afford to lose. We also suggest that you investigate on your own. Here are resources that can help you keep an eye on all the news regarding ETH:
- CoinDesk;
- Ethereum's official blog;
- CryptoSlate;
- The official Ethereum Foundation website.
