Ahead of the Bitcoin Halving 2024 event, the spotlight is on Bitcoin, the hottest cryptocurrency, even as it appears that Ethereum has been quietly sidelined in the market trend. However, trade analysts, pundits and anybody with little-over technical understanding in crypto know that Ethereum, the second most popular cryptocurrency, holds strong potential and could emerge as a major player in future.
As the halving date is approaching, the chatter among the crypto community grows louder regarding Ethereum’s potential to cross the $10,000 barrier post the event. There are several predictions that Ethereum’s price will rise exponentially in the upcoming crypto cycle.
However, these predictions lack any concrete data or evidence to explain the exact trajectory of Ethereum unlike the prediction of Bitcoin price reaching $150,000 post the 22024 halving.
In this article, we discuss if Ethereum price could really break the $10,000 barrier and what are the factors that could lead to it after the upcoming Bitcoin halving event.
Factors That Could Send ETH Above $10,000
There are several major factors supporting Ethereum’s rise to $10,000 and some of them are as below.
Ethereum-Bitcoin (ETH-BTC) Price Correlation
It is historically proven that ETH price closely follows gain in BTC price due to Bitcoin’s major dominance in the cryptocurrency space. As both these crypto assets are largely fueled by speculations rather than actual use, the gain in Bitcoin price pushes Ethereum price upward because of the shared ecosystem.
There is also another major factor where both these assets are bought and sold using one another. For instance, ETH becomes cheaper in the ETH-BTC market when BTC price rises and vise-versa, ETH becomes expensive against BTC when its price decreases. This cycle is a major driver of the correlation between Ethereum and Bitcoin prices.
However, this case has been found unsteady due to major technical differences between both blockchain networks. Over the past year, Ethereum price has only gained 87% while Bitcoin has recorded a gain of over 133% – according to data from PortfoliosLab. This above chart shows that Ethereum has broken its price correlation during the past few months while lagging behind amid aggressive moves from Bitcoin.
The Pump Followed By Bitcoin Breakout
As mentioned above ETH prices tend to follow Bitcoin’s moves, the rapid increase in Bitcoin price could lead ETH to new highs. While there are speculations about Bitcoin price hitting $150,000 – which is a surge of 160% from its current market price – the ETH price is also likely to reach $10,000 due to the market correlation, which will be a surge of over 200% as it is currently placed at $3400-$3700.
Liquidity rotation also plays a major role at the cycle peak where profits in one major asset usually flows into other assets. In such a case, the massive amount of realized profit in Bitcoin could directly flow into Ethereum that might lead ETH price to shoot up beyond $10,000.
Potential Ethereum ETF Approval
After the approval of spot Bitcoin ETFs, the crypto community was much optimistic about the potential approval of spot Ethereum ETFs. However, the sentiment around ETH ETF has turned gloomy after the VanEck CEO Jan van Eck expressed doubts on it in a recent CNBC interview. He said that the Ethereum ETF will likely face rejection from the regulatory agency. A statement like this coming from one of the first Bitcoin ETF issuers holds much significance.
To counter this statement, analysts from Bitwise believe that there are 50 to 60% chances for ETH ETF to be approved by the SEC as it will happen “sooner or later.” The approval will bring billions of inflow from traditional investors as traditional finance players sees Ethereum as a more convenient option due to its smart contract functionality and massive adaptability in real world use cases.
Amid all the bullish speculations for 2024 bullrun, few reports also suggested that ETH will outperform BTC in 2024. There are supportive studies giving solid baking to the claim, so would it really happen?
Will ETH Outperform BTC in 2024
In the highly volatile and unpredictable cryptocurency market, various possibilities exist including Ethereum outperforming Bitcoin in gain. As witnessed in 2021, ETH outperformed BTC, gaining nearly 400% compared to Bitcoin’s 66%.
It is also acknowledged by exporters that Ethereum has a promising future due to several use cases and its unique functionality than Bitcoin. There are slight chances it may perform against Bitcoin in the upcoming rally in 2024. However, it could only outperform in periodic price gains rather than Bitcoin’s market cap and price which is currently far beyond Ethereum.
Conclusion
Bitcoin halving is considered a kick starter for bullrun and it majorly impacts the whole cryptocurrency ecosystem besides Bitcoin. As the second largest blockchain and crypto asset, Ethereum has the potential to unlock the most benefits out of this. While there are speculations about crypto market reaching record highs in the next months, Ethereum price will surely hit a new all-time high while possibly breaking the $10,000 target.
FAQs
Will ETH price reach $10,000 in 2024?
There are chances that ETH price may reach $10,000 in 2024. It could most probably followed by Bitcoin’s price breakout after halving.
How far Ethereum price could go in 2024 and 2025?
There are chances that ETH price may reach $10,000 in 2024. It could most probably followed by Bitcoin’s price breakout after halving.
Does Bitcoin halving impact Ethereum price?
Yes, the halving benefits Bitcoin’s economy which most probably brings positive outcomes in Bitcoin price. We have preciously seen that gains in Bitcoin price are followed by Ethereum price.
