Ethereum (ETH), the second-largest cryptocurrency by market value, faces strong competition from tech stocks, complicating the achievement of a new all-time high by the end of 2024.
Competition for Ether
Since the beginning of 2024, there has been no significant rise in Ethereum’s price. As of September 6, ETH is trading at $2,352, marking a 3% increase compared to the beginning of the year. In contrast, tech stocks like Nvidia and Meta Platforms have gained significantly; Nvidia rose by 122%, and Meta by 50%. Despite these figures, some investors believe a sudden increase in Ether’s price is imminent. Derive’s founder Nick Forster noted that Ethereum struggles to develop a strong narrative to drive a significant price increase. "Currently, Ethereum lacks a strong narrative to boost its price, especially compared to other assets,” said Forster. Ether-based exchange-traded funds (ETFs) launched on July 23 attracted more interest on Wall Street but put Ether in direct competition with tech stocks. Although ETFs have garnered interest, their returns have not been very attractive so far.
Impact of US Elections on Ethereum
The upcoming US elections could add another layer of volatility for Ethereum. According to Forster, the election could be the “most significant event” in Ethereum’s history, even more important than spot ETFs. Investors predict that Ethereum’s daily price movements could increase from 2.5-3% to 3.5%.
Forecasts and Possible Scenarios
Amid these predictions, some investors remain optimistic about a potential price increase. An investor known as Titan of Crypto noted that Ethereum’s relative strength index (RSI) is approaching the oversold region, which usually triggers either a rally or a short-term price increase. While the likelihood of Ether breaking its all-time high in 2024 remains uncertain, key financial and geopolitical events could shift market dynamics and trigger volatility in the coming months.
The chances of Ethereum surpassing its previous peak remain uncertain, but upcoming events could significantly impact the market. Investors continue to closely monitor developments, assessing possible scenarios.
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