Is Bitcoin Price Hike Doing Any Good To Ethereum? Where Is ETH Headed?

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Bitcoin Price Hike

The cryptocurrency market has resurged in the last year. Despite increased competition from hundreds of popular altcoins, Bitcoin (BTC) and the Ethereum network’s native tokens. Moreover, Ethereum remain the obvious crypto market leaders in 2024.

The combined market capitalizations of Bitcoin and Ether account for around 70% of the worldwide cryptocurrency market. Bitcoin’s market capitalization of $1.3 trillion dwarfs Ether’s $460 billion, yet Etherium hits market capitalization is more than four times that of any other cryptocurrency. 

Competitors may arise to challenge the two best crypto market leaders in the future. But for the time being, Bitcoin and Ether are the two most obvious options for crypto investors.

“Is the Bitcoin price hike doing any good to Ethereum? Will Ethereum’s price keep rising?”

Currently, ETH has a better score on a long-term technical analysis than 92% of the cryptos in use. This bitcoin price hike rating indicator benefits buy-and-hold investors who allocate their funds for solid, sustained growth. High long-term and short-term technical scores for coins can assist in identifying assets that have bottomed out, allowing investors to “buy the dip.” 

Ethereum Price Predictions

On May 10, 2024, Ethereum was trading for $3033.66, with a market value of $363.48 billion. The currency has grown significantly since the Shapella update in April 2023, increasing from $2,100 to $4,000. However, following the Dencun improvement, it has dropped by 9.40% in the previous seven days.

The continued interest in Spot Bitcoin ETFs has raised the possibility that Ethereum ETFs will be approved as well. Following the Dencun upgrade, which began on March 13, 2024, overall supply decreased. Furthermore, the upgrade did not support the market’s projected boom. ETH has risen 2.61% in the previous 24 hours. 

According to Cryptonewz, by the end of 2024, ETH will have reached $5,000. By 2025, Ethereum is anticipated to reach its peak of $6,500. Likewise, the minimum of $4,500 and an average of $5,500. And by 2030, it is predicted to reach a maximum of $20,500.

The Dencun update is scheduled for this year, and it is expected to increase the value of ETH. Bitcoin halving can also help to increase the trading value of ETH. If ETH continues to increase, it has the potential to surpass its all-time high.

According to a blog post by top cryptocurrency exchange CoinDCX, 2024 may build the groundwork for ETH’s rising trend. The rise might continue, perhaps driving prices beyond $10,000 and setting a new all-time high. However, negative action may rise once these levels are violated, suggesting a slight decline. By the end of the year, the pullback will be in a downward trend with the year closing in the $5,000 level.

At the start of the year 2030, the price of ETH might return to its $10,000 position by establishing a strong upward trend. ETH may even surpass the current all-time high of about $12,000 and make a new milestone. However, after hitting this high, a significant reverse may occur. The year for ETH will see a dynamic mix of bullish surges, market pressures, and negative adjustments. By the end of the year, it might be about $9,000 to $9,500.  

Why is the price of Ethereum rising?

In May 2021, ETH smashed all prior milestones, setting a new all-time high of almost $4,000. This was the first time Ethereum had reached the $3,000 barrier in its existence. As of May 3rd, when the Ethereum price remained unchanged at $3,110. Some cryptocurrency analysts projected that Ethereum would continue to rise. And it did, up to the $4,000 mark. 

On September 24th, ETH’s price saw an almost 10% increase in exchange value, following a significant jump in May. Even though its price fell in the interim. Furthermore, it recovered its losses in a run that began in July, around the London Hard Fork. 

As many would agree, there are several causes behind the price increase of Ethereum:

1. For starters, the price of Ethereum and most other significant cryptocurrencies in the market fluctuates with the price of Bitcoin. Bitcoin has made significant gains over the last year as a result of the epidemic, whereas Ethereum has trailed behind. Cryptocurrency analysts thought that the recent ETH rise was just ETH catching up to Bitcoin price hike advances.

2. One of the key causes for the growth in Ethereum’s price is the growing popularity of DeFi (Decentralized Finance). Ethereum hosts a large number of DeFi projects on its blockchain network. And, the majority of DeFi activities take place on it. This has and continues to fuel the surge of Ethereum prices in the crypto market. 

3. In addition, Ethereum applications have been creating several software upgrades and aim to offer ETH 2.0, an update that is expected to be released by the end of this year or early 2022 and will make transactions quicker, fees lower, and so on. This new development has piqued people’s interest in its future growth possibilities.

4. Data suggest that growing institutional use has contributed to the surge in Ethereum pricing. According to Coindesk’s Annual Review, an increasing number of institutional investors are considering Ethereum as a store of wealth. 

Effect of Ethereum Dencun Upgrade on ETH Price

Following the successful execution of the Ethereum Dencun update, the Ethereum price has experienced a significant sell-off, dropping by about 14%. Before the update came live, Ethereum had a rise, hitting over $3,470, a 2.5% increase in 24 hours. This increase occurred before the mainnet implementation of the Ethereum Dencun upgrade on March 13, 2024.

The upgrade’s excellent reaction is due to Ethereum’s continued growth as a strong platform for decentralized applications (DApps) and smart contracts. Addressing scalability difficulties, Ethereum wants to attract more developers and projects, thereby increasing demand for its native currency, ETH.

Furthermore, the transition to a proof-of-stake (PoS) consensus mechanism, which is part of the Ethereum 2.0 upgrade that includes DenCun, is seen positively due to its potential energy efficiency and low environmental effect. This is consistent with the industry’s quest for sustainable blockchain solutions, which appeals to environmentally sensitive investors.

Despite initial excitement about the Ethereum Dencun upgrade, the following drop in ETH price demonstrates the unpredictable nature of crypto markets and the challenges of forecasting price fluctuations. Nonetheless, the upgrade is a step forward in Ethereum’s drive to improve scalability, security, and sustainability, cementing its place as a premier blockchain platform.

Bitcoin and Ethereum Performance

Both Bitcoin and Ether have been excellent long-term investments, yet both are subject to tremendous price volatility. Purchasing any cryptocurrency demands a high risk tolerance.

When comparing previous performance, it is impossible to pick who will prevail between Bitcoin and Ether because their relative returns vary depending on the time range. Bitcoin prices have increased by 195% over the last year, while Ether has increased by 140%. 

In the last three years, Ether prices have increased by roughly 147%, while Bitcoin price hike have increased by about 36%. Over the last five years, Bitcoin prices have climbed by around 1,626%, while Ether prices have increased by approximately 2,624%.

It appears that Ether has been the superior long-term investment, but this tendency has changed in the last year due to increased excitement over the debut of spot Bitcoin price hike exchange-traded funds, or ETFs. Of course, previous performance does not guarantee future outcomes, and even expert analysts struggle to precisely anticipate crypto market moves.

Will Ethereum ever surpass Bitcoin?

Given the very unpredictable nature of the crypto market, there are several possibilities for cryptocurrencies, including Ethereum surpassing Bitcoin. As shown in 2021, ETH outpaced BTC, rising approximately 400% vs Bitcoin’s 66%.

Experts believe that Ethereum has a solid future owing to its numerous use cases and unique blockchain and that it has the potential to outperform Bitcoin. However, it is exceedingly improbable that Ethereum’s price would exceed that of Bitcoin. Nonetheless, ETH has the potential to attain a comparable market value to BTC, owing to its unbounded supply, as opposed to Bitcoin.

Closing Thoughts

Price projections indicate that Bitcoin and Ethereum’s recent bullish run will continue. While bitcoin price hike is more established and has a higher market capitalization, swapping it for ETH in the near term has the potential for significant gains. The ETH price has risen dramatically over the last three weeks, with rises ranging from 6% to 16%, making this an excellent time to trade it with Bitcoin and other cryptocurrencies.

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