Ethereum did not get much love in the recent crypto market rally, which was primarily centered around Bitcoin. Moreover, the asset has started to retreat as markets cool, but there could be big bullish moves for ETH in 2024, according to analysts.
Ethereum has already pulled back around 8% from its 2023 high, and it has taken a back seat to big brother Bitcoin and potential spot ETF launches.
Ethereum Fundamentals Still Solid
Nevertheless, nothing has changed, and Ethereum fundamentals remain solid. Ethereum prices have more than doubled since its cycle low of just under $1,000 in June 2022.
On December 20, Ethereum advocate and educator Anthony Sassano posted his “modest bull case” for the network in 2024.
Several catalysts could propel Ethereum to outperform even Bitcoin in 2024, though it has failed to do so in 2023.
He noted the potential for a spot ETH exchange-traded fund approval in 2024. However, on December 18, the SEC delayed its decision on the Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures ETF. It will likely test the waters with Bitcoin products before approving a spot Ethereum-based ETP.
Read more: How to Buy Ethereum (ETH) and Everything You Need to Know
The Dencun upgrade will be deployed in March or April. This heralds scaling improvements with EIP-4844, which also lowers layer-2 gas costs.
Layer-2 activity has surged recently and is currently at an all-time high. According to L2beat, the total value locked across the ecosystem is at a record $16 billion.
Sassano also noted that non-EVM layer-2s such as Eclipse and Fluent are launching, which brings in new types of apps and developers. Crypto gaming will also be predominantly based on the L2 ecosystem, he said.
He added that wallet user experience will continue to improve quickly and,
“Onboard millions of new users to the Ethereum ecosystem.”
Finally, real-world asset tokenization has been gaining steam, bringing more of the “old world” financial products on-chain.
ETH Price Outlook
ETH prices have retreated 1.3% on the day as crypto markets cool. As a result, the asset has fallen back to $2,207 at the time of writing.
Ethereum may be getting no love at the moment, but Sassano concluded:
“It’s nothing new to have to deal with the “crowd” being bearish on Ethereum or fading ETH – though it’s ridiculous to me that this is the case given how much Ethereum has achieved over the last 3 years alone and how much growth potential Ethereum and ETH still have for the very long-term future.”
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