Crypto analyst explains 3 factors driving price fluctuations
Ethereum (ETH)The second-largest cryptocurrency asset, several prominent analysts in the cryptocurrency industry are predicting that the market will see a price surge in the coming months as it shows bullish momentum.
Ethereum is likely to go parabolic in the coming months.
Altcoin Daily cryptocurrency analysts have revealed three key factors that could push Ethereum prices higher in the coming months. Analysts have recently shared some bullish insights on ETH. illustration – On YouTube “Ethereum price is still ready to explode.”
According to analysts at Altcoin Daily, Ethereum is expected to reach $4,000 in the next three to six months. One of the key drivers pointed out by analysts to push the price to this level is the impending “Ethereum beacon upgrade.”
In the video, they highlighted that this upgrade is the last major update for ETH, which is scheduled to be released in the first quarter of 2024. The main goal is to lower transaction fees and improve layer 2 solution efficiency.
Additionally, the Ethereum Beacon upgrade promises a refined user experience. This is an important step toward creating a more accessible and scalable blockchain network. They pointed out that the final testnet for the update is scheduled to take place on Wednesday, February 7th. Meanwhile, the full mainnet launch is only a month away from going live.
As a second key factor, experts identified the hype surrounding approval. Ethereum Spot Exchange Traded Fund (ETF). “I want to be clear that the catalyst we are talking about here is expectations for an ETH spot ETF,” said one analyst.
Ethereum futures are already licensed globally, but analysts point out that ETF approval could be a significant trigger for long-term price growth for Ethereum.
Notable changes from Bitcoin to ETH
According to experts, anticipation surrounding a potential approval is expected to push the price of ETH to $4,000 in 2023, similar to the excitement surrounding the Bitcoin ETF. They also highlighted that the approval of the BTC ETF is one of the reasons why the US Securities and Exchange Commission (SEC) cannot approve the ETH ETF.
If this is correct, ETH is very close to the previously mentioned price level. This is because there are only 112 days left until the final date for ETF approval.
Meanwhile, the final key factor highlighted by Altcoin Daily is “Bitcoin rotation after halving to the rest of the ecosystem.” There may be a circulation of funds after the upcoming Bitcoin halving event. BTC to ETH.
Altcoin Daily also mentioned a possible news selling scenario after the halving that could lead to downtime. As a result, Ethereum can leverage this to become a dominant player in the cryptocurrency market.
Ethereum is currently trading at just over $2,300, up 1.23% in the last 24 hours. The market capitalization is also showing the same upward trend, and the trading volume also increased by more than 41% from the previous day.
Featured image from iStock, chart from Tradingview.com
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