Will Ethereum reach $10,000 after Bitcoin halving in 2024?

While Ethereum appears to be quietly sidelined by market trends ahead of the Bitcoin halving event in 2024, the hottest cryptocurrency, Bitcoin, is in the spotlight. However, trade analysts and experts, as well as those with little technical understanding of cryptocurrencies, believe that Ethereum, the second most popular cryptocurrency, has strong potential to become a major player in the future. I know it can rise.

As the halving date approaches, there is growing buzz within the crypto community about the possibility of Ethereum breaking the $10,000 barrier after the event. There are several predictions that the price of Ethereum will rise exponentially in the upcoming cryptocurrency cycle.

However, these predictions lack concrete data and evidence explaining Ethereum's exact trajectory, unlike predictions that Bitcoin price will reach $150,000 after the halving in 2024.

In this article, we will discuss whether Ethereum price can really break through the $10,000 barrier and what factors could cause it after the upcoming Bitcoin halving event.

Factors that could cause ETH to exceed $10,000

There are several key factors supporting Ethereum’s rise to $10,000, some of which are:

Ethereum-Bitcoin (ETH-BTC) Price Correlation

Due to Bitcoin's major dominance in the crypto space, it has been historically proven that the ETH price closely tracks the rise in the BTC price. Since both of these cryptoassets are primarily supported by speculation rather than actual usage, the shared ecosystem causes a rise in the price of Bitcoin to drive up the price of Ethereum.

There is also another major factor in why both these assets are bought and sold against each other. For example, in the ETH-BTC market, when the BTC price rises, ETH becomes cheaper, and conversely, when the price falls, ETH becomes more expensive relative to BTC. This cycle is the main factor behind the correlation between Ethereum and Bitcoin prices.

However, this case turned out to be unstable due to significant technical differences between both blockchain networks. Over the past year, Ethereum's price has only increased by 87%, while Bitcoin has increased by more than 133%, according to data from PortfoliosLab. The chart above shows that Ethereum has broken price correlation over the past few months while lagging behind amid Bitcoin's aggressive moves.

Pump and Bitcoin Breakout

As mentioned above, the ETH price tends to track the movement of Bitcoin, so a rapid rise in the Bitcoin price could push ETH to new highs. While there is speculation that the price of Bitcoin will reach $150,000, a 160% jump from the current market price, the price of ETH is also likely to reach $10,000 due to market correlation, and if this continues That would be a jump of more than 200%. Currently selling for $3400-$3700.

Liquidity rotation also typically plays a large role at the peak of the cycle, when profits from one major asset flow into other assets. In such a case, huge realized gains in Bitcoin could flow directly into Ethereum, causing the ETH price to soar above $10,000.

Possibility of Ethereum ETF approval

After the approval of the Spot Bitcoin ETF, the crypto community was very optimistic about the chances of the Spot Ethereum ETF being approved. However, sentiment surrounding the ETH ETF has taken a turn for the worse since VanEck CEO Jan van Eck expressed doubts about the ETF in a recent CNBC interview. He said the Ethereum ETF would likely face rejection from regulators. A statement like this from one of the first Bitcoin ETF issuers is very important.

To counter this statement, Bitwise analysts believe there is a 50-60% chance that the ETH ETF will be approved by the SEC “sooner rather than later.” This approval will generate billions from traditional investors, as traditional finance players believe Ethereum is a more convenient option due to its smart contract capabilities and greater adaptability to real-world use cases. This will bring about an influx of dollars.

While there was a lot of bullish speculation about a 2024 bull run, there were also few reports that ETH would outperform BTC in 2024. There is some supporting research to support that claim, but is it really true?

Will ETH surpass BTC in 2024?

In a highly volatile and unpredictable cryptocurrency market, there are many possibilities for Ethereum to outperform Bitcoin in profits. As witnessed in 2021, ETH outperformed BTC, rising nearly 400% compared to 66% for Bitcoin.

Exporters also acknowledge that Ethereum has a promising future as it has several use cases and more unique features than Bitcoin. There is a small chance that it will perform against Bitcoin in the upcoming bull market in 2024. However, Bitcoin's market cap and price far exceed Ethereum at the moment, and it could only be surpassed in regular price increases.

conclusion

The Bitcoin halving is considered a bull run kickstarter and will have a major impact on the entire cryptocurrency ecosystem outside of Bitcoin. Ethereum, the second largest blockchain and crypto asset, has the potential to derive maximum benefits from it. While there is speculation that the cryptocurrency market will reach all-time highs in the coming months, Ethereum price is certain to reach new all-time highs and possibly even surpass its $10,000 target.

Also read: Two weeks left until Bitcoin halving: The countdown begins

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