Predictions for Ether reaching new highs by the end of 2024 remain skeptical. Analysts believe that the asset lacks a strong growth driver, especially compared to tech stocks.
Struggles of Ether
Nick Forster, founder of the crypto derivatives platform Derive and a former Wall Street trader, believes Ether lacks a strong narrative to drive growth. According to him, the asset lacks a compelling story to attract investors.
ETF Performance
The launch of spot Ether ETFs on July 23 may draw more Wall Street attention, but it also puts Ether in competition with more lucrative tech stocks. Since the beginning of the year, Ethereum has gained 0.98%, while some leading tech stocks have shown significantly higher returns. Forster estimates the likelihood of Ether reaching a new high of $4,878 by the end of 2024 to be around 10%. However, three key events must align for this to happen: Donald Trump winning the US presidential election, aggressive rate cuts by the Federal Reserve, and an increase in global financial liquidity.
Impact of US Elections
Forster suggests the US elections could be the most significant event in Ether’s history, perhaps more so than the approval of the ETFs. Significant volatility is expected on election day, potentially moving the price by 10-15%. While traders anticipate more pronounced price swings, pseudonymous trader Titan of Crypto believes Ether is gearing up for an upward move amid ongoing consolidation.
Ether faces uncertainty in achieving new highs in 2024. Key factors will be global financial conditions and the outcome of the US elections.
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