2024 hasn’t been a smooth year for Ethereum so far. The price of the 2nd most popular asset skyrocketed early, going from $2,200 to $4,000 in around three months, and by that time, it was expected that Ethereum was close to reaching $5,000 by the end of the year. Unfortunately, that’s not how things happened, as the value of cryptocurrency dropped after it hit $4,000, so now, Ethereum sits below the $3,000 level. Is this bad news for crypto enthusiasts? Not necessarily. It’s common for cryptocurrencies to go up and down unexpectedly and in a relatively short time, and the current ethereum price usd isn’t a sign that the asset will no longer be profitable. In fact, when it comes to ethereum price prediction 2025, two major catalysts could help it hit the $5,000 mark. Want to learn more? Keep reading!
The Altcoin Season is coming, bringing new opportunities for investors
One of the most notable factors that pushed the price of Ethereum was the arrival of Altcoin Season. As the term itself implies, Altcoin Season refers to a market period when alternative digital assets experience substantial price surges, outperforming Bitcoin, and it often happens during Bitcoin halving cycles’ early stages, when investors look for ways to diversify their holdings in order to get higher returns. Looking back at the previous Altcoin Season, which lined up with the beginning of the Bitcoin Halving cycle in May, it’s easy to see how the event impacted the price of Ethereum. On the halving date, Ethereum had a value of just $200, but the following year, it started trading for $3,800 and experienced a massive surge to $4,891 in November 2021. Now, there’s no guarantee that the same will happen this year, but if it does, investors must be prepared for the opportunities it will bring, and capitalize on lucrative opportunities. How can they do that? Well, first and foremost, you should take the time to do your research, analyzing the technical and fundamental aspects of any investments you’re interested in, as this will help you find the most profitable altcoins to buy. However, we recommend diversifying as a way to spread risk and increase the chances for profit. Remember, putting all your eggs in one basket is never a good idea, so don’t overlook the importance of diversification.
Another essential aspect to keep in mind if you want to profit from the Altcoin season is to time your entries and exits. To this end, you can use technical analysis tools such as resistance and support and RSI, or relative strength index, to recognize optimal entry and exit points for traders. These can be good indicators for the Altcoin Season, helping you monitor crypto market sentiment and price trends before you decide to buy an altcoin. Experienced investors rely on these tools to make informed decisions regarding their investments ( for instance, when to take profits) and establish clear entry and exit strategies that help them reduce losses and maximize gains when there’s heightened market volatility. Lastly, it’s a good idea to participate in presale altcoin events, as they offer early access to potentially lucrative projects at a reduced price. So, be sure to research upcoming ICOs and presale events to spot innovative projects with huge growth potential – this will help you secure positions before they become more widespread and lead to more significant returns once the project matures.
The SEC could approve spot Ethereum ETFs, pushing the price of ETH higher
Another major factor that could boost the price of Ethereum is the potential approval of spot Ethereum exchange-traded ETFs, which are similar to Bitcoin ETFs and have been making waves since they were approved. Although spot Ethereum ETFs aren’t likely to see the same inflows as BTC ETFs, there would still be a substantial influx of new money, which would make a massive difference in the price of the crypto asset, with its price reaching new heights over the next 18 months.
But just as Bitcoin ETFs didn’t become a reality overnight, many influential Wall Street players are doing their best so that Ethereum ETFs will be launched in the market. While initially, Ethereum ETFs were supposed to be approved in May, the SEC delayed it until the end of the summer. What will happen by the time they are approved? Well, without a doubt, the impact could be significant. If you think about it, the main reason why Ethereum price increased so much earlier this year was the expectation regarding the approval of Ethereum ETFs, so considering this aspect, it wouldn’t be unlikely for Ethereum to soar beyond $4,000 when these investment products are launched.
Now, there’s only one problem. The SEC doesn’t like the fact that Ethereum switched to PoS as part of the Merge and has classified the asset as a security. This oversight has negatively impacted the Ethereum price, and it’s unlikely that the asset will reach the $5,000 mark this year because investors first need clarity regarding regulatory risk. The good news? The regulatory environment looks brighter in Washington, D.C., favoring crypto legislation, and some lawmakers have talked about the potential overreach of the SEC and the importance of changing the regulatory framework surrounding cryptocurrencies after the 2024 election.
Is it a good idea to invest in Ethereum now?
Ethereum is a reliable investment, just as Bitcoin is. It represents one of the most proactive blockchains in improving its network, with many future upgrades aiming to boost its performance. Moreover, by far, it is the most popular network among developers, with nearly 1,000 significant protocols built on Ethereum and thousands of NFT collections and meme tokens.
This won’t likely change soon for Ethereum, which is the cryptocurrency with the biggest utility in the market. With this in mind, it would be a good idea to invest in Ethereum, especially if you’re looking for a profitable long-term investment. Considering the two catalysts discussed above, there is a good chance Ethereum will soar to $5,000 by the end of 2025, and that translates into substantial profits for investors. Of course, things could always change, so be sure to keep an eye on the market to see where Ethereum is headed.
