ETH hits $3k, Experts say be careful ETH may drop to $1,700′

Whitney Anderson
Whitney Anderson
Technology Writer
Last updated: May 15, 2024
Why Trust Us
Our editorial policy emphasizes accuracy, relevance, and impartiality, with content crafted by experts and rigorously reviewed by seasoned editors for top-notch reporting and publishing standards.
Disclosure
Purchases via our affiliate links may earn us a commission at no extra cost to you, and by using this site, you agree to our terms and privacy policy.

Ether (ETH), Ethereum’s cryptocurrency, crossed the $3,000 threshold on February 21 for the first time since last April. This significant rise has caught the attention of many in the crypto world. According to CoinMarketCap, Ether has seen a 25% increase in the past month and an impressive 76% growth over the last year.

As the second most valuable cryptocurrency, Ethereum’s recent price surge has sparked excitement and speculation among investors and enthusiasts alike. They’re closely watching to see if the price will climb higher or start to fall.

Several factors are driving Ether’s price up. More people and businesses are using blockchain technology, which Ethereum is a part of. There’s also a lot of interest in decentralized finance (DeFi) and continuous improvements to the Ethereum network. These developments make Ethereum more appealing and valuable.

However, some experts are urging caution. They warn that Ether’s price could potentially fall to $1,700. The world of cryptocurrency is known for its volatility, with prices fluctuating due to various factors like government regulations and investor sentiment.

Keeping an eye on Ethereum and Ether will be interesting for anyone involved in the crypto space. Whether its price will keep rising or face a downturn is uncertain, but it remains a key topic of interest.

Ethereum hits $3,000 again: A story of big changes and hope

Ether’s remarkable ascent back to the $3,000 benchmark has been a testament to the resilience and innovation within the Ethereum ecosystem. This journey, marked by significant technological upgrades and strategic developments, underscores Ethereum’s commitment to enhancing its network and fostering widespread adoption.

The big update: The Merge

At the forefront of Ethereum’s transformative journey was The Merge, finalized in September 2022. This monumental upgrade transitioned Ethereum from the energy-intensive proof-of-work (PoW) model to the more sustainable proof-of-stake (PoS) mechanism. By slashing energy consumption by an astonishing 99.95%, The Merge not only elevated Ethereum’s environmental credentials but also solidified its position as a leader in the push for greener blockchain technologies.

Another important update: Shanghai/Shapella

Following the success of The Merge, the Ethereum network rolled out the Shanghai/Shapella upgrade in April 2023. Through the introduction of Ethereum Improvement Proposal-4895 (EIP-4895), this upgrade addressed a crucial aspect of the ecosystem: liquidity and trust. It enabled validators to withdraw their staked ETH that had been locked on the Beacon Chain since December 2020, marking a significant step towards enhancing user confidence and flexibility within the Ethereum network.

Ethereum April 2022 to February 2024
Source: CoinMarketCap

Looking forward: What’s next for Ethereum

Ethereum has some exciting things coming up that could make it even more popular.

The possibility of an Ether ETF

One of the most anticipated milestones is the potential approval of a spot Ether exchange-traded fund (ETF) by the United States Securities and Exchange Commission. Such approval would mark a significant milestone for Ethereum, potentially unlocking new levels of institutional and retail investment. Market predictions are optimistic, with Polymarket indicating a 45% chance of approval by May 31, and experts like Bloomberg’s Eric Balchunas suggesting a 70% likelihood, signaling strong confidence in Ethereum’s future market performance.

A new upgrade: Dencun

Looking ahead, the Ethereum community eagerly awaits the Dencun upgrade, scheduled for March 13. This upgrade is set to introduce several critical Ethereum Improvement Proposals (EIPs), including EIP-4844, which aims to revolutionize Ethereum’s transaction processing through proto-danksharding. By offloading certain data from the blockchain, this upgrade promises to enhance transaction speed and reduce costs, further optimizing Ethereum’s network for its users.

The Dencun upgrade is expected to mark the beginning of a new era for Ethereum’s proof-of-stake network, with Robert Quartly-Janeiro, chief strategy officer at crypto exchange Bitrue, highlighting its potential to usher in unprecedented levels of efficiency and scalability.

Ethereum’s price future: Different opinions from experts

Ethereum is keeping its value steady for now, but experts have different guesses about what will happen next, especially with the upcoming Dencun upgrade.

Different thoughts on the Dencun upgrade

Robert Quartly-Janeiro from Bitrue points out that the Dencun upgrade will help Ethereum handle more activity, but it might not fix the problem of network delays completely. He thinks that if the upgrade doesn’t do as much as people hope, Ethereum’s price might drop to $1,700.

Yuya Hasegawa from Bitbank brings up concerns about the U.S. banking world and the Federal Reserve’s actions. The end of the Fed’s emergency money help on March 11, 2024, could shake things up. Hasegawa warns that if there’s more trouble in banking, the Fed might have to step in again. If these problems spread to many banks, it could make both the stock and crypto markets more unpredictable, affecting Ethereum’s price after the upgrade.

However, there’s a lot of hope for Ethereum’s price to go up. Bitrue’s research team thinks Ethereum could reach $3,500 soon after the Dencun upgrade and maybe $4,000 later on.

Positive expectations and growing interest

0xBeachball, the head of Synonym, has a positive long-term view. He believes Ethereum’s price might go down for a bit but expects it to rise significantly in the summer, driven by big investments.

Ryan Sean Adams, a well-known voice in the crypto space, talks about the increasing interest in Ethereum that hasn’t fully shown up yet. He’s excited about the chance of a new Ethereum investment product, especially since there’s been less Ethereum available lately.

According to Ultrasound.money, there’s been a drop of 18,960 ETH in the total number of coins over the last month. This drop, while not directly saying how much ETH is for sale, still points to less being available, which could push prices up.

Crypto influencer Michaël van de Poppe sees a big shift coming from Bitcoin to Ethereum, suggesting a strong period ahead for Ethereum.

Conclusion

Ethereum’s recent climb over the $3,000 mark is a result of a few key developments. The most significant is its change to a Proof-of-Stake system with The Merge, along with excitement about the upcoming Dencun upgrade and the possibility of an Ether ETF being approved.

Bitcoin’s halving events, which happen every four years, have also played a role. These events have traditionally sparked more interest in cryptocurrencies, including Ethereum, leading to price increases.

However, there are some concerns that could lower Ethereum’s value. These include strict government rules, problems with future updates, or not being able to solve issues with high fees and slow transaction times. Also, other blockchain platforms that offer cheaper and faster services could take some of Ethereum’s market share.

Despite all the different predictions for Ethereum’s price, there’s a saying, “In a gold rush, sell shovels.” Ethereum, with its ERC-20 standard and Ethereum Virtual Machine, is definitely a key player in the cryptocurrency world.

It’ll be interesting to see if these new updates can maintain Ethereum’s leading position.

Posted in :

Related terms

Related articles

About XPS's Editorial Process

XPS's editorial policy focuses on providing content that is meticulously researched, precise, and impartial. We adhere to rigorous sourcing guidelines, and every page is subject to an exhaustive review by our team of leading technology specialists and experienced editors. This method guarantees the integrity, pertinence, and utility of our content for our audience.

Whitney Anderson
Whitney Anderson
Whitney Anderson is a dynamic technology writer and content creator known for her quick learning and strong interpersonal skills. With a passion for community service and travel, she excels in crafting engaging tech content and leading diverse teams. Whitney is eager to bring her tech expertise and creativity to make a significant impact in your organization.

Why Trust Us

Our editorial policy emphasizes accuracy, relevance, and impartiality, with content crafted by experts and rigorously reviewed by seasoned editors for top-notch reporting and publishing standards.

Disclosure
Purchases via our affiliate links may earn us a commission at no extra cost to you, and by using this site, you agree to our terms and privacy policy.

Latest articles

Most popular

Latest articles

Popular categories

Artificial intelligence

Artificial Intelligence (AI) is a branch of computer science focused on creating systems that emulate human intelligence.

Cryptocurrency

Cryptocurrency is a digital currency secured by cryptography and operates without a central authority.

Tech

Latest developments in technology, including new gadgets, software updates, industry trends, and breakthroughs in science and innovation.

Gaming

Covers updates and developments in the video game industry, including new game releases, updates, reviews, and events.

Cybersecurity

Cybersecurity is protecting computer systems and data from digital attacks and unauthorized access.

Investing

Provides updates on financial markets, stock performances, economic trends, and investment strategies.

VPN

Updates on VPN technology, security features, service providers, privacy issues, and changes in regulations affecting VPN usage.

Networking

Networking connects computers and devices to share resources and information using hardware and software.