Ethereum (ETH) $2,349.89the second-largest cryptocurrency by market cap, shows no signs of seeing a new all-time high until the end of 2024. While some analysts believe it is possible, current market conditions and competition from tech stocks are preventing Ether from surpassing its previous peak.
Ether Faces Strong Competition
Since the beginning of 2024, there has been no significant increase in the price of Ethereum. As of September 6, ETH is trading at $2,352, which is a 3% increase compared to the beginning of the year. In contrast, technology stocks such as Nvidia and Meta Platforms have gained significantly, with Nvidia up 122% and Meta up 50%. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
Despite these figures, some investors believe that a sudden surge in Ether’s price is imminent. Nick Forster, founder of derivatives platform Derive, noted that Ethereum has struggled to develop a strong enough narrative to sustain a strong price rally.
“Currently, Ethereum lacks a strong narrative that would drive its price, especially when compared to other assets,” Forster said.
Ether-based exchange-traded funds (ETFs), which launched on July 23, have drawn more attention on Wall Street but put Ether in direct competition with tech stocks. While the ETFs have gained traction, their returns have not been as attractive so far.
Forster emphasized that three major events would need to occur simultaneously for Ether to surpass its all-time high of $4,891, including Donald Trump winning the 2024 US presidential election, aggressive interest rate cuts by the Federal Reserve, and increased global liquidity. However, options markets only assess the probability of Ether reaching these levels by the end of the year at 10%.
US Election Impact on Ethereum
The upcoming US elections could add another layer of volatility for Ethereum. According to Forster, the election alone could be “the most important event” in Ethereum’s history, even more important than spot ETFs. Investors are predicting that Ethereum’s daily price movements could reach 3.5% from 2.5-3%.
Amid these predictions, some investors remain optimistic about a possible price increase. One trader, who goes by the pseudonym Titan of Crypto, noted that Ethereum’s relative strength index (RSI) is approaching the oversold territory, which usually triggers either a rally or a short-term price increase.
While the likelihood of Ether breaking its all-time high in 2024 remains uncertain, key financial and geopolitical events could alter market dynamics and trigger volatility in the coming months.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
