Ethereum (ETH) – Market Analysis and Price Prediction

Bitcoin's (BTC) most recent halving took place in April 2024, and previous halving events have seen Bitcoin's price rise dramatically in the following year.

Bitcoin’s latest halving event took place in April 2024, and previous halving events have seen Bitcoin’s price rise dramatically in the following year. BTC prices have risen during the second quarter, although this has likely been fuelled by the introduction of spot BTC ETFs.

Historically, it isn’t just BTC that has seen gains following the halving event, though, because as Bitcoin rises, it takes other cryptos with it, and there is the potential for even more gains to be had in other areas of the market. Ethereum, with its own spot ETF launch and continued utility with blockchain developers, represents strong potential for price increases.

Ethereum is a decentralized blockchain. Developers can use the Ethereum network to establish decentralized applications (DApps). It, and Solana, have proven especially popular with meme coin developers, and that trend looks set to continue this year.

Several presale crypto projects are being established on the Ethereum network, including Pepe Unchained which, according to crypto writer Alan Draper, is one of the most appealing new projects in crypto. Other new DApps launching on the Ethereum blockchain include The Meme Games (MGMES), WienerAI (WAI), Shiba Shootout (SHIBASHOOT), and 99Bitcoins (99BTC).

Developers invest in Ether, the network’s native cryptocurrency to develop these tokens, and more app development means greater Ether utility, helping underpin the crypto’s value.

However, while Ether is the native cryptocurrency used by developers on the Ethereum network, the coin is best known as a cryptocurrency used for investing and trading, as well as for buying goods, paying for services, and for use on crypto gambling and gaming websites. It has a total market capitalization of over $400 billion, which is around a third of Bitcoin’s market cap. Its current price of nearly $3,500 is $4,720 which was achieved in November 2021. But it is almost double the $1,850 ETH started the year at and the currency clearly has room for more price increases.

With an unlimited supply of coins, that growth does depend on market factors and trading volume, though. Increased trading volume will be seen in the coming weeks, as ETH is getting its own ETF, following on from the launch of BTC funds.

Bitcoin underwent a ten-year battle with the Securities and Exchange Commission. The SEC argued that Bitcoin’s volatility meant that allowing the trading of ETFs would expose investors to unnecessary risks. However, the courts declared that because of how readily available Bitcoin is, and because of the accessibility of information about it, there was minimal risk associated with further allowing the trading of Bitcoin-based funds.

Following on from that decision, and the subsequent January launch of BTC funds, the SEC gave the green light to Ether ETFs in May, stating that the findings of the court would also be similar for Ether funds, and there was little point in further contesting applications.

Fund managers and investment groups, including many that had already launched Bitcoin funds, started submitting applications. Early applications were rejected because they included staking as part of the fund process. Staking means locking Ether into a smart contract to assist in verifying transactions.

The SEC rejected staking because they claimed it constituted the trading of securities. After staking was removed, applications were accepted and the first spot ETFs launched in late July.

When Bitcoin ETFs launched, billions of dollars of new money entered the market as fund managers looked to purchase BTC. However, it took some time before BTC prices were affected. At the end of February, Bitcoin broke and held $50,000 resistance levels and then went on a bull run to achieve an all-time high of over $73,000 by the middle of March: a more than 50% increase from when spot ETFs were launched.

The removal of staking from funds has put a slight dent in Ether’s armor as it reduces potential gains from the investments, but if ETH prices follow a similar path to BTC prices, it could see a significant boost by the end of August.

Ether’s price boost is dependent on the market, as a whole, as the cryptocurrency market effectively mirrors Bitcoin’s movements. Bitcoin has overcome several potential hurdles this year.

The U.S. and German governments offloaded large volumes of Bitcoins they had seized from criminals and illegal operations and trustees working on behalf of the bankrupt Mt. Gox crypto exchange also started making payments to creditors. Despite these actions, BTC prices have risen steadily from the beginning of July, when they suffered as investors cashed in.

Investors are hoping Bitcoin’s halving will have a positive impact on BTC prices. Halving events occur roughly every four years with previous events in 2020, 2016, and 2012. In those instances, BTC prices rose approximately 12 months later. And, when they did, they took the rest of the cryptocurrency market with them.

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