Ethereum (ETH), the second largest cryptocurrency, is expected to experience a significant price increase in the coming months. Several prominent crypto analysts have identified three key factors that could contribute to this surge.
1. Ethereum Beacon Upgrade:
The impending Ethereum Beacon Upgrade is a major driver for the anticipated price increase. Scheduled for Q1 of 2024, this upgrade aims to reduce transaction fees, improve layer 2 solution efficiency, and enhance user experience. The final test net for the upgrade is set for February 7, with the mainnet roll-out expected within a month.
2. Anticipation of Ethereum Spot Exchange-Traded Funds (ETFs):
The hype surrounding the potential approval of Ethereum Spot ETFs is another key factor driving the expected price surge. Although Ethereum futures have already gained global permission, the approval of ETFs could signal a significant trigger for Ethereum’s long-term price growth. The analysts believe that the anticipation of this approval will push ETH’s price to $4,000, similar to the excitement surrounding Bitcoin ETFs in 2023. The final date for ETF approval is only 112 days away.
3. Bitcoin Rotations After Halving:
After the upcoming Bitcoin halving event, there might be a fund rotation from BTC to ETH. Altcoin Daily suggests that a possible sell-the-news scenario post-halving could lead to a cooldown, allowing Ethereum to take advantage and become the dominant player in the crypto market.
Currently, Ethereum is trading above $2,300, showing a slight increase in the past 24 hours. Its market cap and trading volume have also seen a rise.