Ethereum Rally: Crypto Analysts Outline 3 Key Drivers For Price

Ethereum

Ethereum (ETH), the second largest cryptocurrency asset, is anticipated by several well-known analysts in the crypto industry to undergo a price surge in the upcoming months as the market is seeing a wave of bullish momentum.

Ethereum Poised To Go Parabolic In The Upcoming Months

Altcoin Daily crypto analysts have revealed three major factors that could propel the price of Ethereum in the coming months. The analysts shared their optimistic insights for ETH in a recent episode – “Ethereum price is still ready to explode” on YouTube.

According to the Altcoin Daily analysts, Ethereum is expected to reach $4,000 in the next three to six months from now. One of the major drivers noted by the analysts to take the price to this level is the impending “Ethereum Beacon Upgrade.”

In the video, they highlighted that the upgrade is the last big update for ETH, which is scheduled to go live in Q1 of 2024. Its primary goals are to lower transaction fees and improve layer 2 solution efficiency.

Additionally, the Ethereum Beacon upgrade promises a refined user experience. This is an important step forward toward creating a blockchain network that is more accessible and scalable. They pointed out that the update’s final test net is set to take place on Wednesday, February 7. Meanwhile, its overall mainnet roll-out is just one month away from going live.

For the second key factor, the experts have identified the hype surrounding the approval of Ethereum Spot Exchange-Traded Funds (ETFs). “I do want to be clear here the catalyst we are talking about is the anticipation of the ETH spot ETFs,” one analyst stated.

Although Ethereum futures have already garnered global permission, the analysts point out that the approval of the ETFs might signal a significant trigger for Ethereum’s long-term price growth.

Notable Shift From Bitcoin To ETH 

According to the experts, the anticipation surrounding its potential approval is expected to drive ETH’s price to $4,000, akin to the excitement surrounding Bitcoin ETFs in 2023. In addition, they underscored that the BTC ETFs approval is one reason why the US Securities and Exchange Commission (SEC) can not disapprove the ETH ETFs. 

If this is right, then ETH is very close to reaching the aforementioned price level. This is because the final date for ETFs approval is only 112 days from now. 

Meanwhile, the last key factor highlighted by Altcoin Daily is the “Bitcoin rotations after halving towards the rest of the ecosystem.” After the upcoming Bitcoin halving event, there might be a possible fund rotation from BTC to ETH.

Altcoin Daily also mentioned a possible sell-the-news scenario post-halving that could lead to a cooldown. As a result, Ethereum might take advantage of it and become the dominant player in the crypto market.

Ethereum is currently trading a little above $2,300, indicating a 1.23% rise in the past 24 hours. Its market cap is demonstrating the same increase, while its trading volume is up by over 41% in the past day.

Ethereum
ETH trading at $2,319 on the 1D chart | Source: ETHUSDT on Tradingview.com

Featured image from iStock, chart from Tradingview.com

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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