Analysts Expect Ethereum to Hit $6,000 by 2024

Despite its status as the second-largest cryptocurrency by market cap, Ethereum has faced significant challenges in trying to keep up with Bitcoin’s performance over the past year. While Bitcoin has seen gains of 85.8% over the same period, Ethereum has only seen an increase of 31.6%.

Even with the potential upside generated by Ethereum ETFs, ETH’s performance so far is modest compared to BTC, with gains of 5.9% versus 51.9% respectively, year-to-date.

Market analysts believe that Ethereum ETFs could replicate the success of Bitcoin ETFs, which led BTC to reach all-time highs in 2024. However, investor sentiment towards Ethereum ETFs is divided.

Ethereum ETFs and ETH Price

A Grayscale survey conducted between April 30 and May 2, 2024, revealed that 25% of respondents believe that the approval of ETFs would increase capital flows into Ethereum. Meanwhile, another 25% see no significant impact.

Furthermore, the survey highlighted that 43% of participants were unfamiliar with the concept of Ethereum spot ETFs. This suggests that there is still a lot of work to be done to educate investors about these new products.

When it comes to Ethereum price predictions for 2024, estimates vary widely. Analysts and fund managers project that the price of ETH could reach an average of $6,404 by the end of the year.

Among the most optimistic predictions, ARK Invest, led by Cathie Wood, predicts that the price of Ethereum could reach $166,000 in an extremely favorable scenario. However, most predictions are more conservative, placing the price between $4,400 and $8,000.

Ethereum Challenges

Despite recent performance and regulatory challenges, Ethereum maintains a prominent position in the cryptocurrency market, with significant potential for growth. Ethereum’s transition to the Proof of Stake (PoS) model, completed in September 2022, is a crucial step towards the network’s scalability, especially with the implementation of solutions such as sharding. The solution could increase the network’s transaction capacity to 100,000 per second.

This evolution makes Ethereum a prime candidate for hosting a wide range of decentralized applications (dApps). These solutions solidify its position as the leading platform for smart contracts.

However, Ethereum also faces criticism due to its complexity and the risks associated with its PoS model. Unlike Bitcoin, which has a fixed supply and a network focused on security and absolute scarcity, Ethereum is seen as a project in constant evolution.

ETH has an unlimited supply of tokens and the potential for unexpected changes. This may make it difficult to attract more conservative investors looking for a stable store of value. Still, ETH’s growth so far and the expectations surrounding the cryptocurrency reveal its full potential.

At the time of writing, Ethereum is priced at $2,753 with a daily appreciation of 3.7%, according to data from CoinGecko.

Follow Todaysgist on