The latest Ethereum price prediction is about the second largest cryptocurrency getting to $5k. ETH price reaching $5k will set a new all-time high, and for this to happen, a lot of things have to be in favor of the cryptocurrency. Read here as we explore certain factors that will drive Ethereum to $5k.
Why Ethereum Can Reach $5k
Ethereum is following Bitcoin closely in the crypto market, waiting for an opportunity to grow massively. There are speculations that the second largest cryptocurrency by market cap could shoot up to $5k within 2024 and several factors support this theory, which we will be discussing below.
1. Ethereum Spot ETF
Already, the Securities and Exchange Commission has approved some exchanges to trade Ethereum Spot ETFs. However, this is only a partial approval as the applicants have not begun trading the ETFs. It is expected that the trading of the ETH Spot ETFs will kick off before the end of 2024. However, it could significantly change the price trajectory of Ethereum, with the price moving towards $5k. Moreover, the trading will solidify the revolutionary power of crypto assets beyond just Bitcoin in the eyes of regulators and institutional capital alike.
Parth Chaturvedi, Head of Investments, CoinSwitch Ventures, spoke about the spot ETH ETFs, saying it would have a huge impact on Ethereum. “The spot ETF will allow for an easy way to get exposure to ETH prices without the concerns associated with holding the underlying asset,” he added. In fact, Daniel Bernstein believes that Ethereum could reach more than $6,000 before the end of Q2 2024.
2. Dencun Upgrade/ RWA Boom
Although the Dencun Upgrade happened back in March, it will have lasting effects on Ethereum’s price. It comprises two different upgrades, “Cancun” and “Deneb,” and it will introduce the notion of proto-dank sharding. This upgrade on Ethereum reduces the cost of transactions because of layer two solutions, thereby improving its efficiency and scalability.
Besides the Dencun Upgrade, the recent surge of real-world asset trading could positively impact Ethereum. According to CoinGecko, the value of RWA tokens in the crypto market is now more than $9 billion, with a combined trading volume exceeding $700 million. The RWA sector covers many assets, such as private credit, U.S. treasuries, stablecoins, commodities, and real estate.
According to RWA.xyz, the Ethereum blockchain takes up more than 70% of the $1.5 billion total value of tokenized U.S. treasuries. Moreover, the largest issuer of tokenized U.S. Treasuries, BlackRock Financial Management, Inc., chose the Ethereum network for tokenized RWA. Even for stablecoins, Ethereum takes $88.1 billion out of the $160.57 billion total value. All these points at the increasing growth of Ethereum fundamentals, and the price will eventually catch up.
3. Technical Indicators
Many technical indicators show that Ethereum is in good hands at the moment. According to CoinMarketCap, Ethereum holder addresses (those holding for more than 1 year) have increased to more than 70%. This signifies that more people are becoming bullish about Ethereum’s future price increase. The Moving Averages on Ethereum mostly show buy actions. The Exponential Moving Average, with a value of 3753.1, is signifying buy. Furthermore, the Simple Moving Average, with a value of 3632.8, is also signifying buy.
At press time, Ethereum is currently holding gains above the $3,720 support level, and its resistance level is low above the $3,880 range. Thus, if Ethereum is able to break through this resistance, we could see the gains surpass $4,200 and continue moving upwards. Apparently, the 100-hourly SMA is acting as a vital support level for ETH, reinforcing the bullish trend observed in the short term, and it could further push Ethereum to move its support level to $3,920 if it breaks above $4,000. Also, breaking the $3,920 support, if it happens, could see ETH going to a new all-time high of $5,000.
Current Ethereum Market Performance
At the time of writing, Ethereum’s price was within the $3,800 range, with a daily decrease of more than 2%. While the weekly chart also remains bearish, Ethereum has been very profitable in the last 30 days, with an increase of more than 20% in the monthly chart. Looking at other metrics, the market dominance remains at more than 17% while the market valuation is at over $456 billion. On the other hand, the trading volume stands at over $13 billion.
Conclusion
There is massive speculation that Ethereum will reach $5,000 by 2024. Indeed, several factors support this motion, such as the full approval of the spot Ethereum ETFs and the improvement of the network due to the Dencun Upgrade. Moreover, other technical indicators, such as the Exponential Moving Average and Simple Moving Average, all point to Ethereum’s bullish nature. It is not yet defined whether Ethereum will reach $5k, but the signs are there.
Cover Image from Microsoft Designer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.
