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Ethereum Is Poised to Hit $10,000 This Year If These Key Factors Play Out

Ethereum's potential for growth in 2024 depends on a major network upgrade and the will of the SEC

Despite Bitcoin's (BTC) recent surge to new all-time highs, Ethereum gears up for a significant rally, potentially soaring to $10,000 or beyond within this year. Juan Leon, a crypto research analyst at Bitwise, highlights Ethereum's bright horizon despite its recent overshadowing by Bitcoin. Leon explicitly states: 

"[Ether] could very well go above $8,000, $10,000 this year, maybe even higher."

Currently lagging about 20% behind its 2021 peak, Ethereum's trajectory is reminiscent of previous market cycles where Bitcoin initially leads the recovery, followed by Ethereum and other altcoins. This historical pattern suggests Ethereum is on the brink of a monumental rally, with Leon asserting: 

"Bitcoin has sucked up all the attention with the Bitcoin ETFs launching, but [ETH] has at least two major catalysts that will come into focus."

By leveraging direct insights from industry analysts and recognizing the cyclical nature of cryptocurrency markets, Ethereum's journey toward unprecedented heights in 2024 is both anticipated and grounded in solid market analysis.

The Dencun upgrade and ETF excitement: catalysts for Ethereum

Ethereum's ascent in 2024 is not just speculative; it's driven by tangible developments, notably the Dencun upgrade and the anticipation surrounding spot Ether ETF applications. The Dencun upgrade, expected this month, promises to significantly reduce transaction costs on layer 2 networks, enhancing Ethereum's utility and attractiveness. Juan Leon, from Bitwise, underscores the importance of this upgrade: 

"This month's Dencun upgrade will make transactions cheaper on layer 2 networks, which will bolster activity and even attract mainstream, mass consumer demand for Ethereum."

Additionally, the buzz around potential approval of spot Ether ETFs adds another layer of excitement. With a decision deadline looming in May, the community is optimistic, though cautiously so. Leon gives a nuanced view of the prospects:

"The odds for an approval are not as clear as were in the case for the spot Bitcoin ETFs earlier this year...but the possibility will bring excitement to ether." 

He estimates a 50%-60% chance of approval, signaling a significant shift in investor sentiment and potentially drawing in more conservative, institutional investors.

Ethereum vs. Bitcoin: a comparative analysis of market movements

Reflecting on the previous cycle, Juan Leon, a crypto analyst at Bitwise, recalls: 

"Late November 2020, BTC was knocking at its all-time highs at $19,000, while ETH was hovering below $600, some 60% lower than its 2018 peak." 

A similar pattern unfolds today, with Ethereum gradually gaining momentum. Recently, ETH showcased a robust 14% increase over seven days, outpacing Bitcoin's 9% gain, hinting at the growing investor interest and the shifting market dynamics favoring Ethereum.

This comparative analysis not only illuminates the cyclical nature of cryptocurrency markets but also positions Ethereum for a potential breakout. With Bitcoin having paved the way, Ethereum's path to new all-time highs seems increasingly attainable, fueled by solid fundamentals and growing investor enthusiasm.