Ethereum (ETH) Price Outlook for 2024: Recovery Expected?
Ethereum has experienced a significant drop in value during the recent market correction, with Ether losing nearly a third of its worth in just a few days. While Bitcoin has managed to recover most of its value since the peak in March, Ether continues to struggle to bounce back from the recent flash crash. The question arises: will this be the narrative for Ethereum in 2024, or is there a possibility of a price resurgence before the year concludes, mirroring Bitcoin’s trajectory?
Ethereum’s price trajectory commenced in August 2015 when it was priced at under $1 for the majority of that year. By March 2016, Ether had climbed to $10, escalating further to $100 in 2017 and culminating the year at $774. In early 2018, Ether surpassed the $1,000 mark before plummeting below $100 during the 2018 crypto market crash.
From 2019 to 2021, Ethereum witnessed another rally, hitting an all-time high of $4,815 in November 2021. Following a dip in early 2022, Ether began an upward trend in 2023, reaching $2,500 by January. During a major bull run, Ethereum peaked at $4,000 in March 2023, only to experience corrections in April and June, bringing the price down to $3,600 before a flash crash wiped off $1,000 from its value.
Amid the significant crypto bull run this year amidst the Bitcoin ETF hype, Ethereum stood out as one of the most successful cryptocurrencies. At its peak in March, the price of ETH surged to $4,000. Subsequently, a substantial crypto market correction ensued in April, followed by a milder correction in June. As the price of Ethereum stabilized at $3,600, a flash crash occurred, reducing its value by $1,000.
The current scenario in the crypto market has seen a significant downturn, with over $500 billion (14.5%) lost. Ether experienced a 21% decline, hitting a low of $2,112 on August 5 before rebounding to the current price of $2,651. Despite rallying to $2,750 on August 12, Ether faced strong resistance at the $2,800 level.
Gas fees pose another potential challenge for Ethereum as network validators rely on these fees for income. A sharp decline in gas fees threatens validators’ financial incentives, potentially leading to an exodus that could compromise the network’s stability.
In recent days, Ethereum ETF products observed positive inflows for three consecutive days, attracting $10.8 million, $24.3 million, and $5.0 million, respectively. However, following this streak, ETH ETFs experienced a net outflow, with $39.2 million exiting the market on Friday, marking the largest outflow since August 2.
Looking ahead, a long-term crypto forecast for Ethereum must align with significant Bitcoin cycles that dictate the overall market trend. These cycles, often tied to halving events, influence the trajectory of the crypto market. Historically, Bitcoin prices have surged following halving events, indicating the potential for another bull run by the end of the year.
Trader Peter Brandt predicts a forthcoming downturn for Ethereum, citing a five-month rectangle pattern and a rising wedge formation that could drive ETH’s price down to $1,625. Brandt acknowledges that market movements are unpredictable, emphasizing that patterns may not always unfold as anticipated. If this projection materializes, Ethereum’s price could conclude 2024 below $2,000, akin to the outcome in 2022.
