Ether's All-Time High in 2024: Possible, But the Odds Are Slim

Wall Street Eyes Ether, But Tech Stocks Outshine

Ethereum (ETH) may have caught the attention of Wall Street with the launch of spot Ether ETFs in July 2024, but it’s facing stiff competition from the tech sector. According to crypto analyst Nick Forster, while the Ether ETF launch was a positive sign, it now competes directly with tech giants like Nvidia and Meta, which have delivered significantly better returns this year.

Nvidia stock, for instance, is up 122.57% since January 1, while Meta Platforms has surged 49.26%. By contrast, Ether has only seen a modest 0.98% increase in value, currently trading at $2,376. This lackluster performance has led Forster to believe that hitting a new all-time high by the end of 2024, while possible, is “not highly likely.”

What Could Drive Ether’s Price Surge?

For Ether to break its current all-time high of $4,878, three key events need to align, Forster explained. These include:

• Donald Trump winning the U.S. presidential election in November 2024.

• The Federal Reserve making aggressive interest rate cuts to stimulate the market.

• A broader increase in global financial liquidity, which would flood more capital into markets like cryptocurrency.

Forster gives this scenario around a 10% chance, noting that traders have priced in more significant price swings for Ethereum, with volatility levels expected to increase as the election draws near.

Election 2024: A Game Changer for Ether?

The upcoming U.S. election could play a major role in determining Ether’s fate in 2024. Forster believes it could be the “most significant event” for Ethereum’s price movements, even more so than the approval of the spot ETFs. Traders expect a potential 10–15% swing in Ether’s price around election day, creating a volatile environment for the asset.

However, crypto trader Zen has warned that rate cuts by the Federal Reserve alone may not be enough to push Ether to new heights. A smaller-than-expected rate cut could lead to a bearish market reaction, he noted.

Traders Bet on a Price Spike

While analysts remain cautious, some traders are more bullish. Pseudonymous trader Titan of Crypto pointed out that Ether's relative strength index (RSI) is nearing oversold territory on the three-day chart, a sign that could indicate a rally or at least a short-term pump is imminent.

Fellow trader Yoddha shares this optimism, predicting that Ether is “getting ready for five figures,” despite the current market consolidation. These traders believe that upward momentum is building and that a price surge could happen sooner rather than later.

Conclusion: Will 2024 Be the Year for Ether?

While Ether may not be keeping pace with tech stocks, and its narrative might seem weak compared to its competitors, there’s still hope among traders that the cryptocurrency could see a significant price spike. However, much will depend on external factors, such as the U.S. election and the Federal Reserve’s policies. Ether’s journey to a new all-time high may be possible, but it’s far from guaranteed.