Ethereum’s price faced a downturn on Wednesday with a 1.5 percent intraday loss to $2,300 amid market volatility and uncertainty ahead of the recent Federal Open Market Committee (FOMC) Meeting.
Despite this setback, crypto analytics firm Santiment highlights Ethereum’s robust network growth. Over 101,000 new Ethereum addresses are created daily, with 484,000 unique addresses actively engaging with the network. This expansion represents a 28 percent increase in daily network growth compared to three months ago.
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“Ethereum has returned to a $2,345 value for the first time since its fall began on January 22nd. The network is encouragingly rising in active addresses and network growth. Increased utility is a primary pillar to justify an increasing $ETH market cap,” Santiment said on X (formerly Twitter)
Market analysts foresee a potential price rally for Ethereum if the channel pattern remains intact, with projections aiming for a retest of the overhead trendline at $3,000. However, resistance levels may present hurdles at $2,430 and $2,700 along the way.
This projection is further reinforced by the recent support of around $2,200, which indicates renewed buying interest and potentially paves the way for a renewed recovery trend in the market.
Initially, Ethereum saw its price dip 20 percent from $2,714 to $2,171, following a correction in the broader cryptocurrency market post-mass spot Bitcoin ETF approval. However, the price found support around $2,200 and rebounded by six percent within a week, reclaiming the breached support level.
In addition, the Ethereum project’s developments also continue to advance. The successful launch of the Dencun upgrade offers hope for a potential recovery of ETH price.
Slated for 2024, the Dencun upgrade presents a dual enhancement occurring across Ethereum’s primary blockchain layers. Its recent rollout on the Sepolia test network marks a substantial advancement, with only one more testnet deployment remaining before the introduction of the “proto-danksharding” feature.
Proto-danksharding is poised to revolutionize transaction costs on Layer-2 blockchains by introducing a new data storage method termed “blobs.” This innovation aims to lower transaction expenses and data availability costs.
📈 #Ethereum has returned to a $2,345 value for the first time since its fall began on January 22nd. The network is encouragingly rising in active addresses and network growth. Increased utility is a primary pillar to justify an increasing $ETH market cap. https://t.co/nyXkLceYDX pic.twitter.com/i9N9yaggB5
— Santiment (@santimentfeed) January 30, 2024
Ethereum Price Prediction: StanChart forecasts ETH to surpass $4,000
Analysts at the British Standard Chartered Bank are eyeing a potential 70 percent increase for ETH, envisioning it surpassing the $4,000 milestone by May.
StanChart analysts anticipate that the U.S. Securities and Exchange Commission (SEC) will likely delay decisions on spot ETH ETF applications until the final approval date, which is slated for May 23. This deadline coincides with the latest submission date for applications from asset managers VanEck and Ark/21Shares.
The bank’s forecast is underpinned by the SEC’s treatment of Ethereum thus far, notably since Ether has yet to be categorized as a security in the SEC’s legal actions against crypto firms. In addition, Ethereum’s listing as a regulated futures contract on the Chicago Mercantile Exchange (CME) also contributes to the optimistic outlook.
Lead analyst Kendrick suggests that Ethereum price would likely face less selling pressure compared to Bitcoin following a potential ETF approval. This hypothesis is drawn from the fact that the Grayscale Ethereum Fund (ETHE) holds a smaller proportion of Ether market capitalization compared to the Grayscale Bitcoin Fund (GBTC).
Kendrick anticipates that, initially, only straightforward spot ETFs tracking Ethereum’s price movements may receive approval by May 23. However, he envisions the possibility of more specialized ETFs, including those incorporating staking rewards, being introduced at a later stage.
Despite this optimism, SEC Chairman Gary Gensler has consistently emphasized his distinction between Bitcoin and other cryptocurrencies, signaling a cautious approach to regulatory decisions in the crypto space.
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