Explore Ethereum’s journey towards reclaiming the $3,000 mark as the crypto market eyes growth. Learn how it stands against Bitcoin and prepares for the next bull run.
Ethereum, the second-largest crypto in the world, and Bitcoin, the blueprint for digital currencies that has earned the name digital gold, have had a longstanding rivalry. Ethereum Support Help UK Many believe that the situation is bound to change and that Ethereum will ultimately manage to overcome Bitcoin. While many are skeptical about this possibility, it’s clear that ETH is on an ascending path. The current Ethereum price is the result of constant growth over the past couple of months after a relatively challenging 2023.
However, going into 2024, investors expect the situation to change and believe that cryptocurrencies are set for growth. What can investors do to prepare for the next bull run, and when can it be expected to arrive?
Performance considerations
It’s impossible to say for sure when the bull run will go in full swing since the market is typically quite volatile. Changes in the crypto environment don’t occur in the same way as in other financial spheres, where some of the movements are relatively predictable. Things can change abruptly in the crypto world, and investors must learn to keep up with them.
So, how is Ethereum set to perform over the near future? Will it really manage to surpass BTC? Some investors seem convinced this will be the case, as the next bull run might relegate Bitcoin to the second position. The Ethereum ecosystem is quite different from the other blockchains, being a pioneer in decentralized finance solutions as well as applications. These utilities have played a vital role in how the currency grew and developed.
In fact, many researchers see Ethereum as a trailblazer in the blockchain industry as well and believe that its numerous functionalities will soon be integrated into traditional systems. Yet, many who have observed the crypto market for a time have noted that it is still unlikely that Ethereum will be able to sustain enough growth to surpass Bitcoin anytime soon.
Next Level
However, that doesn’t mean that Ethereum will continue to stagnate. 2021 was the best year for the crypto market, and at the time, prices were steadily approaching $5,000. The bear market and crypto winter of 2022 managed to negate all those gains, and crypto coins have been making their way up ever since, against considerable resistance. Many exchanges have come under scrutiny for allegedly committing fraudulent activities.
Many ended up collapsing, taking their investors’ money with them. Ethereum Support Help UK Crypto-friendly banks were in a similar situation. Many investors moved to the remaining trustworthy platforms to continue their transactions. It appears now that their efforts will soon pay off since Ethereum is set to reclaim the $3,000 level. The price broke through the resistance level at $2,000 and appears to hold the one at $1,930 steady, meaning that a bull run is imminent.
Examining data charts shows that this level is in the coin’s near future. The numbers reveal that Ethereum is subjected to a series of higher highs but also higher lows, indicating that the bull market is already beginning to show up. It also managed to overcome the resistance provided by the moving averages at 50 and 100 days.
Volume
Cryptocurrencies are very complex, and there are many things you need to consider when looking for an indicator for future trends. The volume is one of them, and, in the case of Ethereum, the data shows that it is on a descending path. Yet, this isn’t necessarily a cause for concern, and many investors believe that it is actually an opportunity to obtain strong momentum. Historically, this pattern has preceded consolidation phases, with the price stabilizing before making the final move and setting out to grow.
The possibility of an incoming consolidation would confirm that the bull run is sustainable and that the coin can continue to evolve without the risk that it will be bound to a continuous cycle of dropping very low and then growing, only to plummet shortly after. The rise of layer 2 has a role to play in this regard as well, as it has been increasing network fees. The features were initially designed to scale back the network and make it more affordable.
While it’s still possible that these results will appear after a while, the transition period still means that the fees will climb slowly but surely. If users start to be displeased with the elevated costs, the network might come under scrutiny, and stagnation could intervene, setting the progress back.
Broad market rise
The crypto environment is quite sensitive to pressures, whether they’re internal or external. This is precisely why investors must be aware of any changes in the news, as geopolitical situations can significantly increase or decrease prices. Typically, all cryptocurrencies grow and drop around the same time, so if most of the market is in a slump, it is implausible that a specific coin will be more successful. Even if it stands out from the rest, its growth will probably not be very noteworthy.
Currently, the environment is undergoing a period of steep growth. It started in October, after the difficulties of the previous month, and it appears now that the upswing trend will continue into the last month of 2023 and further into the new year. The price of Ethereum succeeded in climbing to $2,200 for the first time in several months. Similarly, Bitcoin reached $40K for the first time since May 2022, one of the last few months of higher prices before the drop that began in July.
Many Bitcoin holders withdrew nearly 40,000 coins between November 17th and December 1st, showing that many users will likely want to take custody of their holdings. The marketplace expects a rate cut over the coming year, as investors are set on the potential of the ETF applications, set to be approved shortly. The price points could still see more growth in the following weeks, as a result.
To sum up, prices have been challenged over the past months, but it seems now that Cryptocurrencies are set for an upwards path. If the major players like Bitcoin and Ethereum are doing well, the whole marketplace will succeed.