Amid a bullish momentum in the cryptocurrency sector, which has pushed its representative asset, Bitcoin (BTC), over the $50,000 price threshold, things have been going great for the largest altcoin by market capitalization – Ethereum (ETH) – and investors are wondering if five figures could be in store this year.
As it happens, the recent market optimism has pushed Ethereum closer to the psychologically important price level of $3,000, and breaking through this barrier could give it enough strength to continue further, possibly making a new all-time high (ATH) and perhaps even ending up in the $10,000 range.
Bullish factors for Ethereum
That said, such a significant price increase would not be possible without other important factors falling into place, including the upcoming launch of Proto-Danksharding, as observed by Simon Dedic, the CEO of blockchain advisory and investment firm Moonrock Capital, on February 20.
Specifically, proto-danksharding, a.k.a proposal EIP-4844, which should launch in mid-March 2024, refers to a new type of transaction on Ethereum that accepts ‘blobs’ of data to persist in the beacon node for a short period of time, with blobs “small enough to keep disk use manageable,” according to the team.
On top of that, the network is looking at a possible approval of its spot exchange-traded fund (ETF) by the United States Securities and Exchange Commission (SEC) this year, which would lead to massive inflows and possibly contribute to an increase in the price of its native token.
Furthermore, Dedic stressed the launch of EigenLayer and re-staking, which will “take a ton of ETH supply out of circulation,” thanks to allowing users to use their staked ETH as cryptoeconomic security for protocols other than Ethereum, in exchange for protocol fees and rewards,” the team said.
Finally, the Moonrock Capital CEO highlighted Ethereum’s deflationary tokenomics (its value increases due to a reduction or stagnation in supply) and the possible non-fungible token (NFT) craze coming back at some point with the return of the “mainstream mania.”
With this in mind, he believes that Ethereum, out of all blue chips, is best positioned for the next two years “in terms of supply/demand ratio given the future supply sinks and reflexivity” and “5 digits is programmed imo,” Dedic said, referring to the possibility of Ethereum hitting $10,000.
Ethereum price analysis
Meanwhile, Ethereum is currently trading at $2,934.6, up 0.68% in the last 24 hours, as well as gaining 8.15% across the previous seven days, and adding up to the accumulated increase of 21.87% on its monthly chart, as per the most recent price data retrieved on February 21.
All things considered, Ethereum is in a great position to significantly increase its price in 2024 and perhaps even reach a new ATH. However, $10,000 might be overly optimistic for this year, and even an ETH bull like Dedic gives it a two-year window for five figures to enter the narrative.
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Source: https://finbold.com/can-ethereum-hit-10000-in-2024/