In a bold prediction, industry analysts foresee Ethereum’s price surging to $3,500 in the first quarter of 2024, largely propelled by Fidelity’s recent move into the cryptocurrency market. Michaël van de Poppe, the CEO and Founder of MN Trading, asserts that ETH will experience a substantial uptick once Bitcoin takes center stage.
Fidelity’s Spot ETF filing for Ethereum is the catalyst behind this optimistic forecast. This move is seen as a significant development, signaling a shift in the investment landscape. Van de Poppe’s prediction aligns with a broader trend of institutional interest in ETH, with BlackRock also awaiting approval for its spot Ethereum ETF.
BlackRock’s Pending Ethereum ETF
BlackRock’s application to offer an ETF based on Ethereum’s underlying token is expected to open the doors for traditional investors to enter the crypto space. The market eagerly awaits the potential impact of institutional capital on ETH’s price, especially considering BlackRock’s backing of both Bitcoin and ETH.
Austin Arnold from TheStreetCrypto delves into the possible scenarios following the approval of BlackRock’s ETF. While acknowledging the difference between Bitcoin and ETH in terms of tokenomics and use cases, Arnold suggests a bullish scenario where ETH could reach $42,000.
However, he emphasizes a more realistic expectation of Ethereum hitting $10,000 in the current market cycle, representing a substantial 1,000% increase in return on investment.
Arnold emphasizes the unique qualities of Ethereum as the “digital oil” powering a decentralized global supercomputer. Unlike Bitcoin, which aims to be a store of value, ETH plays a crucial role in supporting decentralized applications and the overall functionality of the network.
With ETH’s supply not fixed, Arnold points to a protocol upgrade contributing to a potential supply shock. He sees the BlackRock Ethereum ETF as the demand shock factor that could significantly influence the cryptocurrency’s value.
Nevertheless, the crypto community eagerly awaits the unfolding of events in the first quarter of 2024, anticipating whether ETH will indeed reach the predicted $3,500 mark or potentially exceed expectations with the backing of major institutional players like Fidelity and BlackRock.
Related Reading | Solana (SOL) and Dogecoin (DOGE) Buck the Trend with Positive Price Movement