As 2024 progresses and the cryptocurrency market keeps evolving, Ethereum (ETH), the second-largest cryptocurrency by market capitalization, stands as a strong contender, garnering the attention of both investors and traders. With various developments in the pipeline, and a volatile market to deal with, there are speculations about ETH price will surge this year. This article delves into the key factors that could influence Ethereum price in 2024 and what traders should keep an eye on.

Recent Market Performance of Ethereum Price

According to CoinMarketCap data, Ethereum price has experienced challenges in the market, having declined by 2.8% in the past day to trade today at $3,357.89. The past month was not friendly either, with the token recorded losses of about 12.17%. With a market cap of $403.6 billion, and a trading volume of $10.8 billion, ETH remains a strong contender among cryptocurrencies. Although the coin achieved its all-time high milestone of $4,891.70 on November 16, 2021, it has since dropped in price by 31.32%.

Key Factors Influencing Ethereum’s Price in 2024

1. Ethereum Upgrades and Developments

In 2024, the Ethereum network will experience several major enhancements. The ongoing “Sharding” is designed to improve the network’s scalability even more.

Sharding will enable Ethereum to handle numerous transactions at once, easing congestion and decreasing gas fees. Anticipated enhancements in technology are likely to draw in additional developers and users to the platform, potentially increasing the need for ETH

2. Institutional Adoption

Interest from institutions in Ethereum is increasing. Many big financial institutions are starting to incorporate Ethereum in their activities, whether through investing directly, using DeFi apps, or creating products based on Ethereum.

In 2024, the anticipated introduction of Ethereum ETFs could potentially unlock the doors for a surge of institutional funds. These advancements are expected to increase investor trust and encourage interest in ETH.

3. Decentralized Finance (DeFi) Expansion

Ethereum has been behind the growth of the DeFi ecosystem. The sector has seen an increasing number of assets on Ethereum. Decentralized exchanges (DEXs), lending platforms and yield farming are innovations on DeFI continuing to gain traction.

As the ecosystem expands, the demand and utility for ETH are likely to increase, positively impacting its price.

4. Non-Fungible Tokens (NFTs) and Metaverse

Ethereum is also making big advancements in the metaverse and NFT areas. The popularity of virtual real estate, collectibles and digital arts is driving demand for ETH, especially since most NFTs are created on the Ethereum blockchain.

Most NFTs are minted on the Ethereum blockchain. As the concept of metaverse develops, the role of Ethereum in fueling these virtual worlds could result in higher adoption, leading to increase in ETH price.

5. Regulatory Environment

The regulatory environment for cryptocurrencies still has both positive and negative aspects. Although clear regulations can support growth, overly strict policies may hinder innovation and discourage investment.

Traders need to monitor regulatory changes worldwide, as they could affect the price of Ethereum. Favorable ETF approvals or supportive blockchain policies could trigger price surges as positive regulatory updates.

Technical Analysis and Market Sentiment

The Ethereum (ETH) technical analysis shows a complex situation with indicators like EMA, MACD, RSI, and Fibonacci levels. EMA signals ‘Sell’, hinting at a bearish trend, with potential support at $3,090.3.

MACD at -47.4 suggests selling due to bearish momentum, while RSI at 41.2 is neutral but near oversold levels. Fibonacci levels indicate support at $3,266.8 and resistance at $3,767.7, offering insights on potential price movements.

Falling below $3,266.8 could lead to further drops, while surpassing $3,767.7 might indicate bullish momentum.

What Traders Should Know

1.  Stay Informed: Staying updated about Ethereum’s technical upgrades and their schedules is essential. Effective execution of these improvements could signify a significant uptrend.

2. Monitor Institutional Movements: Pay attention to updates from large financial institutions about their participation in Ether. Higher adoption by institutions can result in noticeable price gains.

3. Follow DeFi and NFT Trends: The rise of DeFi and NFTs within the Ethereum ecosystem shows the high demand and usefulness of ETH. Monitoring these industries can offer understanding of potential price fluctuations.

4. Regulatory News: Keep informed about regulatory changes happening across the world. Favorable regulatory updates may result in optimistic market outlook, while unfavorable news can elicit the opposite reaction.

5. Technical Analysis: Make use of technical indicators for insight into market trends and possible entry and exit points. This can assist in forming informed decisions when trading

Conclusion

thereum faces a critical juncture in 2024,  driven by tech advancements, institutional attention, and the evolving DeFi and NFT sectors. Despite current bearish trends, the long-term outlook is optimistic with the upcoming upgrades and potential ETF greenlights. Traders must stay alert to market shifts and regulations to seize Ethereum’s anticipated growth in 2024 through informed decision-making and technical analysis.

The post Will Ethereum Price Surge in 2024? What Traders Should Know appeared first on CoinGape.

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Filed under: News - @ July 3, 2024 8:16 am