Key points
- Ethereum enters 2024 with bullish momentum.
- The SEC might approve the first ethereum spot ETFs soon.
- The long-term upside hinges on the coin’s popularity.
Ethereum’s momentum is carrying forward into 2024. The world’s leading altcoin is soaring to highs not seen since 2021.
What’s causing the ethereum rally? Well, investor sentiment has increased since the Securities and Exchange Commission approved the first spot bitcoin exchange-traded funds earlier this year.
Ethereum spot ETFs might be just around the corner. That prospect could open the door for a wave of institutional investors and send ethereum prices to new all-time highs.
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Ethereum performance
Ethereum prices surged to new 52-week highs in mid-February 2024 and topped the $4,000 level in early March 2024.
The spot bitcoin ETF news has been the most significant cryptocurrency catalyst in 2024. But ethereum could also rally in the coming months if the Federal Reserve cuts interest rates sooner or more aggressively than expected.
ETH prices are up 48% in 2024. That’s roughly in line with bitcoin’s year-to-date gain. As of late March, Ethereum is trading below its all-time high of $4,891 set in November 2021.
Additional upside in 2024 depends on monetary policy. It also hinges on clarity regarding crypto regulations and ethereum’s ability to demonstrate scalability. The scalability factor is important as the number of decentralized applications on its blockchain grows.
Ethereum price stats
Ethereum price prediction 2024
Ethereum's momentum has been bullish in 2024. Its chart looks impressive, too. The crypto experienced a "golden cross" when its 50-day simple moving average crossed above its 200-day SMA in November 2023. That’s a bullish technical indicator.
The leading altcoin might be overbought in the near term due to the rally in February and March. But a pullback to around the 50-day SMA at $3,000 wouldn't necessarily be a bearish signal. The key resistance level to watch is $4,000, where the ethereum rally stalled in March.
If ethereum breaks out above $4,000 in 2024, the next key level will be surpassing the all-time high of $4,891.
Industry price targets for ethereum in 2024 range between $2,600 and $20,000. But crypto markets are unpredictable and volatile. So take price targets with a grain of salt.
Ethereum spot ETFs
The SEC delayed its ruling on BlackRock's ethereum spot ETF application.
News on the approval and subsequent launch of ethereum spot ETFs could be a major bullish catalyst. But the SEC might want to observe the spot bitcoin ETFs for an extended period before giving other spot crypto ETFs the green light.
Bloomberg ETF analysts recently lowered their odds of an ethereum spot ETF approval by May 2024 to just 30%.
Ethereum price prediction 2025
Ethereum models and predictions get even less reliable when you look to 2025. Several variables could impact the crypto’s price next year.
Artificial intelligence-based websites, crypto traders and industry analysts have 2025 ethereum price targets ranging from around $6,000 to above $21,000. Industry insiders project the crypto will reach nearly $7,500 by 2025.
Fintech solutions provider Modulus Global’s models predict ethereum will reach $6,828 during the current cycle. But Modulus CEO Richard Gardner said that peak could be one to three years away.
Will ethereum outperform bitcoin eventually?
Both cryptos have performed extremely well. But bitcoin's 153% gain in the past year has topped ethereum's 104% gain as spot bitcoin ETFs have grabbed headlines.
Ethereum has been the better investment over a longer period, though. It’s generated nearly double the return of bitcoin over the past five years. But in context, ethereum had a longer runway, trading at less than $200 in April 2019.
Lucas Kiely, chief investment officer at Yield App, said comparing bitcoin and ethereum is like comparing apples and oranges. While Kiely noted ethereum could outperform bitcoin eventually, many analysts say it’s unlikely to happen in the short term.
Historical sentiments: Ethereum price history
The ethereum blockchain went live in 2015 and spent most of its first few months trading for less than $2. Ethereum didn't generate significant price momentum until skyrocketing bitcoin prices gained mainstream awareness in late 2017.
ETH prices hit $100 for the first time in May 2017. They broke above $1,000 in January 2018 after the launch of the first bitcoin futures contracts in December 2017.
CME Group's bitcoin futures were the first crypto-related financial products from a mainstream financial institution. It followed up with ethereum futures contracts in September 2022.
Ethereum prices peaked above $1,300 in January 2018 before plummeting to less than $100 by December 2018.
Ethereum trading during the COVID-19 pandemic
Crypto trading became trendy once again during the COVID-19 pandemic. The price of ethereum soared to new all-time highs and peaked at nearly $5,000 in November 2021. That was before rising interest rates triggered a sell-off in cryptos in 2022.
The 2022 sell-off created chaos in the crypto market. Luna and its associated stablecoin terra completely collapsed in May 2022. Crypto exchange FTX and a handful of other prominent crypto firms and crypto lenders filed for bankruptcy protection later that year.
Crypto winter and beyond
Ethereum prices dropped as low as the $1,000 threshold during the crypto winter of 2022. But ETH made it back above $1,500 by January 2023. Since then, it’s continued gaining ground throughout the year. ETH finished 2023 in the $2,200 range.
The crypto rally picked up in early 2024 following the launch of the first spot bitcoin ETFs. The SEC approval sent ethereum's price above $4,000 for the first time in more than two years.
Ethereum's utility
Bitcoin is used primarily as a store of value and a means of value transfer. The ethereum blockchain network, on the other hand, has a unique utility for dApp developers. They use the ethereum network to develop other cryptocurrencies, trade non-fungible tokens, and create and run smart contracts and other decentralized finance applications.
Bitcoin's overall crypto market dominance has been on the rise. But ethereum's utility and decentralization have helped it continue to dominate the sprawling field of altcoins.
Ethereum is also the most popular blockchain for NFT sales. Its network has nearly 60% more NFT sales than the bitcoin blockchain. It also has significantly more NFT sales than any other blockchain, according to CryptoSlam.
Finally, ethereum's transition from proof-of-work verification might make the crypto more scalable. It’s also more appealing to those who are concerned about the environmental impact of crypto mining.
Ether futures
Ethereum is the only crypto other than bitcoin with futures contracts that trade on the Chicago Mercantile Exchange. Futures contracts are agreements to buy or sell an asset at a specific price at a future date. They can provide a high degree of leverage that can supercharge returns.
Futures trading is prevalent among institutional investors. And ethereum futures can serve as useful hedges against bitcoin positions.
You can trade ethereum futures contracts as a retail investor. But their inherent volatility creates an additional dimension of risk on top of an extremely volatile and risky crypto.
Can ethereum hit $20,000?
Determining a true value for ethereum can be difficult for even professional financial analysts. The crypto doesn't generate cash flow or revenue like a traditional business. It also doesn't represent ownership of a physical asset or intellectual property.
Analysts at VanEck use estimates of total ethereum network revenue to make long-term price projections for the crypto. VanEck forecasts that ethereum network revenue will climb from $2.6 billion to $51 billion by 2030.
The firm's bull-case projection of $136.7 billion in 2030 revenue represents a best-case scenario ethereum price target of around $51,000.
Can ethereum reach $50,000?
Ethereum prices could surpass $50,000 by 2030 in a best-case scenario, according to VanEck. But that would require a significant rise in activity on the ethereum blockchain over the next six years. When more apps are running on the blockchain, increased fee revenue is generated.
Kadan Stadelmann, chief technology officer at Komodo Platform, said such growth hinges on the ethereum network's scalability.
"If the ethereum network becomes more scalable, ETH could be a good investment alternative to bitcoin. However, reaching $50,000 during the next bull market cycle is possible … but unlikely," Stadelmann said.
Should you invest in ethereum?
The ethereum blockchain has emerged as the top blockchain for dApp developers. That positions the crypto as a key player in the future of finance, NFTs and other industries. The more popular the ethereum network becomes, the more the long-term bull case makes sense.
But there is no guarantee ethereum will maintain its position as the top dApp blockchain over the long term. The crypto has been an excellent long-term investment up to this point. That said, ethereum prices have always been extremely volatile and prone to extreme sell-offs.
Frequently asked questions (FAQs)
Ethereum’s all-time high was $4,891 in November 2021.
Ethereum might be an appropriate investment for short-term market speculators and traders who have a high risk tolerance and are looking for an extremely volatile asset.
But ethereum has an unproven long-term track record compared to assets such as gold, stocks and bonds. Don’t assume its strong past performance is a guarantee of future returns.
It’s extremely difficult to accurately predict the price of crypto given fluctuations in the market are based largely on investor sentiment. VanEck forecasts ethereum prices will reach a base of around $11,800 by 2030. Its best-case bull scenario for 2030 is around $51,000.
