Fund Managers See Ethereum as the Digital Asset with the Brightest Growth Potential
Ethereum’s value surged after a period of consolidation, capturing the interest of investors and traders, especially those involved in the speculative perpetual futures market. Many analysts in the crypto space now consider it highly probable that the SEC will approve a Bitcoin ETF by the end of January 2024, which would likely provide a further boost to the cryptocurrency market by attracting significant institutional investments, particularly from hedge funds.
The SEC’s approval of such ETFs would significantly increase Bitcoin demand, which would positively affect the price of Bitcoin and many other cryptocurrencies. Positive movements in Bitcoin usually increase investor confidence and tend to influence the value of other cryptocurrencies, including Ethereum (ETH).
Notably, a survey by CoinShares found that fund managers currently view Ether as the digital asset with the most promising growth potential. In the survey, nearly 45% of participants favored Ether, while about 39% believed in Bitcoin’s growth potential. Additionally, 6% of fund managers showed interest in Solana. CoinShares analysts commented in their report:
“Ethereum is seen as the digital asset with the most compelling growth outlook. This is reflected in the recent large validator entry queue, indicating strong demand for its yield.”
Ethereum Might Break the Key $2,000 Barrier
Prominent cryptocurrency analyst Dmitry Noskov, from the European trading platform StormGain, has recently shared his outlook on Ethereum (ETH) and revealed his expectations for where ETH could be by the end of the year. Noskov’s projections are influenced by the current growth of the cryptocurrency market, spurred by the upcoming Bitcoin halving in 2024. He anticipates that the crypto market will continue to grow through the end of the year, with Ethereum riding this momentum.
Noskov estimates that Ethereum could reach $1,900 before the year ends, and it might even surpass the psychological $2,000 mark. His forecasts are also shaped by enthusiasm within the cryptocurrency community, as well as positive developments surrounding the potential approval of a Spot Bitcoin ETF.
However, investors should remain cautious, as cryptocurrency markets are notoriously volatile. There is also potential for “market turbulence” in the weeks ahead. The Federal Reserve has kept interest rates steady for the second consecutive meeting, but there is still the possibility of one more rate hike this year.
The strength of the U.S. economy and its robust labor market could lead to further interest rate hikes, and investors will be closely watching the upcoming October job report. Geopolitical uncertainty, especially escalating tensions between Israel and Hamas in the Middle East, could also lead to risk-off sentiment in the cryptocurrency market.
Technical Analysis for Ethereum (ETH)
Ethereum has gained over 20% since October 19, 2023, rising from $1,543 to a high of $1,867. The current price of Ethereum (ETH) stands at $1,814, and despite some minor corrections, bulls continue to control the price movement. Many analysts believe that more investors may buy ETH in the coming weeks, and as long as ETH remains above $1,700, it is in the BUY-ZONE.
Key Support & Resistance Levels for Ethereum (ETH)
On the chart (from January 2023), I have highlighted key support and resistance levels that could help traders anticipate ETH’s price movement. According to technical analysis, bulls are currently in control of ETH’s price, and if it rises above $1,900, the next resistance could be around the $2,000 mark.
The primary support level is $1,700, and if ETH drops below this, it would signal a “SELL” and open the way to $1,600. If it falls below $1,600, which also represents strong support, the next target could be around $1,500.
Factors Supporting the Rise in Ethereum (ETH) Price
The primary reason for Ethereum’s recent price surge is its correlation with Bitcoin’s growth, similar to other cryptocurrencies. For the bulls to maintain control, breaking the $2,000 level would be crucial. The growing speculation around the approval of the first Bitcoin ETF in the U.S. is certainly positive for Ethereum, and many analysts believe that approval is imminent.
Indicators of a Potential Decline for Ethereum (ETH)
The approval of the first Bitcoin ETF in the U.S. would likely have a positive effect on Ethereum’s price, but investors should also consider the potential impact of regulatory concerns in the cryptocurrency space. These concerns could spill over and dampen investor sentiment, potentially leading to a broader market correction.
The volatile nature of cryptocurrencies might also trigger a sell-off in ETH if negative news surfaces—such as a failure to secure SEC approval for Bitcoin ETFs or the bankruptcy of a major crypto firm. ETH’s critical support level is $1,700, and if it breaks this, a drop to $1,600 is possible.
Inzichten van analisten en experts
Speculation surrounding the first Bitcoin ETF approval in the U.S. is a major positive for Ethereum. A CoinShares survey reveals that fund managers currently see Ether as the most promising digital asset. Around 45% of participants favored Ether, while 39% were confident in Bitcoin’s growth.
Renowned cryptocurrency analyst Dmitry Noskov believes that the crypto market will continue growing through the end of the year, with Ethereum benefiting from this trend. In the coming weeks, ETH’s price will be heavily influenced by developments with the SEC, as well as broader economic and geopolitical factors such as potential economic slowdowns, rising tensions in the Middle East, and central bank monetary policies.
Disclaimer: Cryptocurrency is highly volatile and may not be suitable for all investors. Never speculate with funds you cannot afford to lose. The content on this site is intended for educational purposes and should not be considered financial or investment advice.
