Ethereum price prediction: Will ETH recover?

Ethereum Price Prediction: A Recovery Opportunity or a Dead Investment?

Bitcoin surged to 109,000 USD, reaching a new high after Trump's re-election, while Ethereum remains sluggish, down 68% from its peak in 2021. The market is bleeding, creating panic as Bitcoin could fall below the 80,000 USD mark, particularly negatively affecting altcoins. Trump is outraged by Russia's handling of the ceasefire, and the market atmosphere has been under significant pressure from the trade war and Trump's Bitcoin reserve plan, which has not impressed investors. Ethereum continues to move in tandem with risky assets, but the outlook is not promising.

Expert Predictions

Bloomberg's commodity strategist, Mike McGlone, warns that if U.S. stocks continue to decline, ETH could hit a bottom of $1,000 this year. The $2,000 level could be a sign of recovery, but with Bitcoin in a shaky position, altcoins may suffer even more severe negative impacts.

The Bumpy Journey of Cryptocurrency

McGlone reminds that Bitcoin was born in 2009 as a digital safe haven alongside gold and silver. Since then, Bitcoin has formed a huge ecosystem, pulling along Ethereum and various altcoins. The increase in speculation in the cryptocurrency market has led to warning signals emerging. When assets rely too much on hype and infinite growth, regulators may intervene, putting significant pressure on the future of Ethereum.

Gold Shines When Cryptocurrency Struggles

In contrast to cryptocurrencies, gold is having a stellar year with a 26% increase in 2024, surpassing even the S&P 500. Concerns about inflation and global tensions are driving investors to seek safer havens, with gold solidifying its position as a reliable option. The gold-copper index, an important economic signal, is also rising to levels not seen since 2009 and 2016, a potential sign of many economic difficulties.

The Future of Ethereum?

The future of Ethereum is unclear. If economic conditions improve and risk assets recover, ETH could reach 2,000 USD. But if the market continues to decline, another sharp drop may be waiting. With Bitcoin already facing difficulties, Ethereum investors are bracing for the next fluctuations.

Many Different Perspectives

Cryptocurrency analyst Quinn Thompson from Lekker Capital believes that the recovery prospects for ETH are slim, calling it a "dead investment" due to the decline in usage and transaction fees. As Layer-2 applications develop, a debate arises—will this help ETH or just boost other tokens? BlackRock still believes that ETFs allowing ETH staking could be a real game changer, despite the $4 billion flow into ETFs and the upcoming Pectra update.

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