700% profit coming? Why Some See Ethereum ETH Price Reaching $20,000
Ether's price surpassed $2,800 on February 15 for the first time since early 2022, reaching an all-time high above $4,900 reached at the end of 2021.
The recent rally has been driven by a confluence of factors – pending approval of an ETH exchange-traded fund (ETF) in the US, rising participation levels closing in on indirect supply, and overall positive market sentiment.
TLDR
Ether (ETH) price rose above $2,700 on February 15, 2024 for the first time since May 2022 as traders awaited the approval of an ETH exchange-traded fund (ETF) in the US by major financial firms such as Franklin Templeton, BlackRock, Ark. INVEST PROVIDED ETH ETF THAT CAN GROW INSTITUTIONAL INTEREST 25% Ethereum distribution supply now locked in ETH 2.0 share contracts More than 943,000 validators now active as investors deposit more ETH to earn ~4% annual high reward. As stakes on the Ethereum Beacon Chain increase, improving network security, analysts predict that the price of ETH could quickly reach $5,000, with $3,500 as a key mid-term target if this momentum continues.
Several major financial services firms, such as Franklin Templeton, BlackRock and Arch Invest, have received regulatory approval for spot Bitcoin ETFs in 2023.
They are now racing to launch the first spot ETH ETF, which will open the floodgates for trillions in corporate capital to invest directly in the asset.
SEC approval for spot Bitcoin ETFs has helped boost the price of BTC to over $50k this year. If spot ETH ETFs get the green light, market participants expect a similar impact on ETH prices.
In parallel, participation on the Ethereum 2.0 Beacon Chain continues to grow steadily. About 25% of the total circulating supply of ETH is now locked in escrow, reducing sell-side pressure.
More than 943,000 validators are actively participating in the consensus process on Ethereum as it transitions to an energy-efficient proof-of-stake blockchain.
Validators earn ~4% annual returns on capital locked up as collateral for rewards, creating a passive income stream that boosts engagement.
As stake levels increase, so does the chain's security, making 51% attacks impossible due to the cost of acquiring a large supply of ETH.
In line with the growing focus of institutional investors and funds on ESG mandates, ETH's stake certification pillar is environmentally sustainable. This makes it more likely that the SEC will greenlight Ether ETFs.
With consolidation around $2,800, analysts say ETH looks poised to challenge its historic highs of around $5,000 in 2024.
Key target levels in progress are the April 2022 high of $3,500 and the November 2022 pre-Creto winter high of $4,200.
Continued stockpiling by locking in the supply of ETH, the approval of spot ETFs to bring in new institutional capital, and the return of a broader crypto bull run could be the perfect storm that sees Ether trade in the 5 digits for the first time.
