Altcoins
How high can Ethereum go?
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According to Bernstein Private Wealth Management – a major US brokerage firm – in a first quarter research report on Ethereum released in February, Ethereum is most likely the only cryptocurrency other than Bitcoin that will likely be approved for spot by the SEC .
“Ethereum, with its yield dynamics, environmentally friendly design, and institutional utility for creating new financial markets, is well-positioned for mainstream institutional adoption.” wrote Bernstein analysts Gautam Chhugani and Mahika Sapra.
One really exciting part of the report: Institutions not only want to launch a spot ETF allowing regulated investors to buy and sell Ethereum in SEC waters, they are excited to participate in Web3 on the Ethereum blockchain and to “build more transparent and open tokens”. financial markets on the Ethereum network.
When will an Ether ETF be approved? Bernstein said in March that there was an almost certain chance that the SEC would approve an Ethereum ETF within the next 12 months. A report on Investing.com said:
“This optimistic forecast is supported by interest from financial heavyweights like Franklin Templeton, BlackRock (NYSE:BLK) and Fidelity, who have already seen Bitcoin ETFs approved and are now applying for their Ether counterparts.”
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Which crypto will explode in 2024?
Most recently, Coinbase, the leading US cryptocurrency exchange, predicted that “based on recent research findings, it will “soon eclipse other cryptocurrencies.” according to a May 17 report by BeinCrypto.
“Although Ethereum has underperformed year-to-date, its long-term positioning remains strong in our view,” Coinbase monthly outlook. reported report. “We think this has the potential to surprise on the upside later in the cycle.”
According to the principle of mean reversion, it may be that because Ethereum has underperformed year-to-date, it is more undervalued in the market relative to its peers and represents an opportunity to value buying for crypto investors who like to buy altcoins when their price is too low:
“Mean reversion is a financial theory that suggests that asset prices will eventually return to their long-term average. This concept is based on the belief that asset prices and historical returns will gravitate toward a long-term average over time. (Investopedia)
On top of that, Ethereum is a strong AI play in 2024, a year in which artificial intelligence is one of the dominant meta-strategies for investors. Then add the upcoming Ether ETF approvals to Ethereum’s technical undervaluation and its AI proposition, and here’s an altcoin ready to make a move.
Ethereum is the world’s first smart contract cryptocurrency network. It cannot obtain enough liquidity to meet demand. This is why new meme coins like SHIBA and PEPE often exceed the gains made by base layer ETH tokens by several orders of magnitude. A new Ethereum project Kai Cat (KAI) is on pre-sale now– and in pursuit of the great doges!
Will Ethereum reach $8,000 in 2024?
It cannot be said with certainty what digital commodity prices will do on open liquid exchanges until the markets have moved, but the markets are giving indications of their future intentions that the altcoin investor well informed can consider better calibrating its prospective vision…
Besides the 4-year supply halving in April, the most important event in Bitcoin’s market cycle, the second most important driver of its price in 2023-2024 was the Bitcoin ETF rally. First the retail rally starting in October last year, then Wall Street’s Bitcoin rally after the SEC approved a dozen ETFs on January 10, 2024.
There was a three-month gap between the start of this rally and official approval in Washington. Two months later, Bitcoin reached its all-time high price above $75,000 on March 15. During this five-month period, BTC gained approximately 170% (for an average annualized ROI of 408%).
But remember: the day the SEC gave the green light to Bitcoin ETFs, it wasn’t retail Bitcoin that rebounded. There had already been growing expectations since October that approval was close. It was Ethereum that rose 17% between January 7 and 11, while Bitcoin rose 5% during that window.
Markets are now in a similar position with Ethereum as they were with Bitcoin in October. If they generate the same gains for ETH as with BTC, the price of Ether could over the next 12 months rise to $8,000 from its average price of $3,050 on Sunday, May 19.
Trading meme coins on DeFi networks like Ethereum can be riskier when the market falls and more rewarding when the market recovers. It’s a bit like leveraged trading, but simpler and less risky in some ways than using derivatives contracts, because no debt is incurred to obtain your leverage – just economics and power meme.
A new coin, Kai Cat, is currently on pre-sale and has already raised nearly $250,000 in just a few days. Investors looking to bet small on bigger gains during Ethereum’s next bull run have already moved nearly $250,000 worth of ETH and BNB onto the KAI chain.
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