Will Ethereum’s 10% Rally Spark a New Bull Run?

Could the next cryptocurrency market bull run be started by Ethereum's 10% Rally?

Ethereum's recent 10% increase has made headlines in cryptocurrency news due to the ever-volatile nature of the market. The recent spike in Ethereum prices has sparked speculation about the possibility of a fresh bull run, producing volatility in cryptocurrency prices and keeping investors closely monitoring the cryptocurrency market.

The prices of Ethereum (ETH) and Ethereum Classic (ETC) remained stable on Thursday following the approval of eleven Bitcoin ETFs by the Securities and Exchange Commission (SEC). At US$2,630, the second-largest cryptocurrency globally, ETC reached its highest level since May 2, 2022. Comparably, the ETC shot up to US$27.73 (the peak in September 2022).

The SEC's decision to approve eleven Bitcoin exchange-traded funds (ETFs) from firms including Blackrock, Franklin Templeton, Invesco, and Ark Invest was the biggest crypto news of 2011. This was a significant move as it will increase institutional demand for Bitcoin in the upcoming years. Additionally, it was important because it had previously refused many funding requests.

Analysts expect that these businesses will also apply for their ETFs, which is why ETH, and ETC prices increased following the ruling. An Ethereum ETF, which is expected to be called the iShares Ethereum Trust, has already been registered by Blackrock. Additionally, Grayscale is probably going to submit a transition request to convert its Ethereum Trust (ETHE) into an exchange-traded fund (ETF). Indeed, there is now a 13.7% premium over ETHE's market price to NAV rather than a discount.

Ethereum is the second-biggest cryptocurrency in the world with a market capitalization of more than US$309 billion, therefore it makes sense to invest in an Ethereum ETF. Among the most liquid tokens on the market is this one as well. Because it supports major companies in sectors like gaming, NFTs, and DeFi, it is also the most beneficial.

The problem with Ethereum ETFs is that the 2022 merger event will likely compel the SEC to examine them more closely. Ethereum became a proof of stake (PoS) network after this merger, replacing its proof of work (PoW) architecture. This implies that it uses validators to verify transactions rather than mining. Because of this, the SEC considers it to be a financial security and feels that investors should have more protection. As a result, the SEC may first reject Ethereum ETFs.

Conversely, Ethereum Classic's strong correlation with the main Ethereum network contributed to its recent rise. To begin with, Ethereum Classic is derived from the original Ethereum and retains its core technology, such as Proof of Work. Even though ETC is less liquid, analysts think that if an application is made, the SEC will accept its ETF.

Ethereum Price Prediction Outlook

Ethereum's price forecast for 2023–2030, according to CoinCodex, is based on an examination of previous data, technical indications, and market trends. By the end of 2023, Ethereum is expected to reach US$0.10, by the end of 2024, US$0.15, and by the end of 2025, they forecast, capping a positive turnaround. Ethereum may reach US$1 by 2030, with a possible peak of US$1.21.

Ethereum's price projection for 2023–2030, according to Forbes, is predicated on the idea that the cryptocurrency will keep expanding and become more well-known among online groups and celebrities. A maximum of US$0.0824 in 2023, US$0.158 in 2025, US$0.50 in 2027, and US$1.19 in 2030 are predicted for Ethereum.

Ethereum's price projection for 2023–2030, according to LiteFinance, is based on an assessment of the market dynamics, and technical and fundamental variables. According to their predictions, Ethereum will fall in 2023 and average US$0.0757 by year's end. However, it will rise in 2024 and 2025, averaging US$0.22 and US$0.41, respectively.