Ethereum, the second-biggest cryptocurrency in the world, has been going through a challenging time in 2023 under the pressure of many different factors. The increasing demands from regulators and the repeated collapses of several exchanges and crypto-friendly banks have also destabilized the market environment, contributing to uncertainty and mixed feelings among investors, who were apprehensive about conducting transactions. The current Ethereum price is the result of several developments and movements within the crypto space and is expected to continue climbing throughout 2024.

A bullish rally is a certainty, especially after the more sluggish pace of crypto over the past couple of years. However, since the digital currency environment can change suddenly, it’s essential for users to be prepared and have solid strategies in place to protect their assets.

 

Price climb

On January 12th, the ETH price managed to surge above $2,600, gaining more considerable momentum than it had in a long while. Since then, the values dropped a little, in an anticipated correction, but remained stable nonetheless. Between the 10th and 12th of January, ETH gained 13.5%, surpassing the $2,600 peak for the first time since May 2022. The main reason for the rally was the approval of the Bitcoin-backed ETF, an announcement that rocked both the worlds of crypto and traditional trading only a couple of days before.

However, Bitcoin itself performed rather poorly, going down 2% during the same timeframe. The slowdown isn’t especially consequential, but it is still important for investors because it is unexpected. Bitcoin was set to have an astronomic climb in the aftermath of the ETF announcement, and the fact that it didn’t couldn’t have gone unremarked.

Market cap

The current Ether market capitalization is around $322 billion. Some analysts and investors are wondering whether the coin itself will be able to support this steep level. Over the past two months, Ethereum gained almost 30% in price value, a little ahead of Bitcoin’s 24% during the same period. This is quite a feat because Bitcoin’s supremacy was believed to be uncontested in the aftermath of an ETF approval. However, it seems so far that Ethereum will perform better, at least for the time being.

The ETFs are set to revolutionize the crypto market by improving accessibility and allowing users to become investors without owning crypto directly. This is a great opportunity, especially for institutional investors, who have considerable capital to invest and can give the trading environment a real boost. Many investors currently expect an Ethereum ETF approval by May as well. However, others believe it will take a little longer and that August is the more likely date.

Asset managers

Several asset managers were involved in the proceedings for a Bitcoin ETF. Among them, BlackRock is perhaps the most noteworthy as the largest institution of its kind on the planet. The Securities and Exchange Commission issued numerous delays, which the companies had no choice but to accept. January 10th was the latest deadline, and the SEC made the announcement on the exact same day. Some investors were already bracing themselves for a new delay, which would have pushed the prices back again and perhaps caused further stagnation. However, this didn’t occur, and the community rejoiced. But, in true fashion for the cryptocurrency environment, the investors have already begun anticipating the next movement.

The Ethereum ETFs and their impact have already been discussed, and investors have already begun to offer their predictions. Some investors are incredibly optimistic, expecting an official ruling to arrive before May. Generally, delays and refusals are expected and even seen as a natural part of the process for crypto users. After all, Bitcoin had no choice but to wait for several years. But now that the infrastructure is already in place and that hurdle has been overcome, future ETFs are expected to have a much smoother experience.

Competitors

Ethereum and Bitcoin are seen as endless competitors even though they serve pretty different niches. While Bitcoin has remained more traditional, focusing mainly on the buying, selling, and trading of cryptocurrencies, Ethereum has expanded its use case to include decentralized finance and applications and is actually seen as a pioneer in these fields. However, the emergence of the so-called “Ethereum killers” has the market on the edge.

Since the environment is constantly changing, it’s not so surprising that many expect Ethereum, the second-largest crypto in the world, to have competition and perhaps even lose the race. But just as altcoins never surpassed Bitcoin, it is also unlikely that any other will manage to exceed ETH and win momentum over it. Solana was the most likely contender for Ethereum’s spot, but investors are now convinced this is unlikely.

For SOL, the bullish tendency disappeared after the SPL token airdrops. These fungible tokens adhere to SPL standards, allowing integration with applications and different platforms. The tokens can represent anything, ranging from native assets to unique holdings. Now, most tokens face considerable price corrections of at least 40%. The DApps and their activity remained focused on a few projects that had imminent launches but which also subsequently faded.

The NFT markets have also been challenged lately, especially after the introduction of the Ordinals on the Bitcoin blockchain. But regardless of the stagnation, it is clear that the market remains undisputed and that Ethereum continues to be one of the most important cryptocurrencies in the world.

Staking

Since upgrades allowed investors to withdraw their staked assets, the number of users that have chosen to stake has also climbed considerably. The trend remains strong, and the price has benefitted from the 4.3% annualized reward. The slightly negative issuance rate is another bonus. At the moment, nearly 24% of the entire circulating ETH supply is locked but still participates in the validating processes on the network.

This means that investors still have high expectations concerning the price movements. The network is set to undergo a hard fork, which would account for an advancement in the technological abilities of the marketplace. The rollup transaction costs will drop, and data availability will also increase.

To sum up, the Ethereum market is set to undergo numerous changes in 2024, and investors are eagerly awaiting. However, it’s essential to remain aware of the price changes that could occur and the ways in which they might impact your portfolio.