HODL FM is back with another solid price prediction for Ethereum, an assessment of the onchain, community, technical and fundamental metrics impacting Ethereum’s future outlook.
What’s currently happening on Ethereum?:
- Ethereum network fees: Transaction fees on Ethereum network remain at record lows, with average transaction cost at 0.00029 ETH (equivalent to $0.7340).
- Ethereum spot ETF products: Spot Ether ETF suffered $84 million outflows in the first week of September.
What will happen to Ethereum in Future?:
- Ethereum exchange reserves: ETH exchange reserves shot by 163K ETH in the first four days of September.
- Inflationary activity: Ethereum issuance rate is inflationary as per insights by Ultrasound.Money at 0.734% annually.
- Vitalik Buterin’s holdings: Ethereum founder Vitalik Buterin withdrew 800 ETH, fueling speculations of a massive sell-off.
Expert predictions:
- ETH at $5,000: A crypto analyst on X (degentradingLSD) states ETH will climb to $5,000 by end of October.
- Big ETH breakout in Q4: EljaBoom, another crypto analyst on X is convinced the ETH breakout we’ve been waiting for will happen in Q4 this year.
More: Spot Ethereum ETF Trading Starts Altcoin Season
Ethereum is 6.45% down this week vs last week with price falling from $2,557.12 to $2,388.93 over the last seven days.
Ethereum Price Prediction for the short-term
Over the past 30 days, Ethereum has experienced a 25% price decline. However, the capitulation phase may be over, which signals potential upward movement. Hence, the market could anticipate a breakout for Ethereum in Q4, 2024.
Additionally, Ethereum remains above its 50-day EMA support level, and its momentum indicator currently sits at -125, positioning it in the buy zone. These technical factors indicate a positive outlook for the asset.
As a result, some experts like EljaBoom on X project Ethereum could reach $3,000 by October 2024, based on this analysis.
$ETH is still trading above EMA 50 support level
— Elja (@Eljaboom) August 28, 2024
Price capitulation has happened ✅
Now, the boring phase is going on where price keeps trading within a certain range
I'm still convinced of no breakout before Q4 pic.twitter.com/udYwi5uuvf
According to TheScalpingPro, a well-known crypto analyst on X, the largest altcoin is also currently trading within a large triangle pattern.
The analyst suggests we could see a potential double bottom formation near the upward-sloping trendline support before the price moves higher. Traders are advised to watch for this critical support level, as a bounce could signal the next leg up for Ethereum.
$ETH
— Mags (@thescalpingpro) September 3, 2024
Ethereum is trading inside a massive triangle.
Expecting a possible double bottom formation near the upwards sloping trendline support before it goes higher. pic.twitter.com/pAeg5S0MWt
Ethereum Price Prediction for the medium-term
Crypto trader and analyst CryptoYodhaa expressed confidence in Ethereum's future, stating that he isn’t concerned if the asset consolidates for another month.
He remains certain that Ethereum is positioning itself for a significant move, potentially reaching five figures over the next few months.
I don't care if it consolidates for another month. I'm sure #Ethereum is getting ready for 5 figures pic.twitter.com/tQBpq9Kb4M
— Yoddha (@CryptoYoddha) September 4, 2024
Meanwhile, Ethereum fees have drastically fallen, but significant drops in gas fees have historically coincided with price bottoms for ETH, further suggesting the potential for future upward movement.
However, the decline could also be due to several factors, including a struggling market where altcoins are lacking momentum, which could also reduce on-chain activity.
Moreover, the migration of meme season and decentralized app interactions to faster and cheaper Layer 2 blockchains on the Ethereum ecosystem could have diverted traffic away from the Ethereum mainnet, as well as the introduction of blobs which significantly boosted network processing speeds and reduced transaction fees.
Ethereum Price Prediction for the long-term
Ethereum continues to outpace Bitcoin in wallet growth, with a 3.3% increase over the past three months, bringing its total holders to 126.96 million. In contrast, Bitcoin saw a slight decline of 0.1%, with 54.18 million total holders. Meanwhile, Tether also experienced growth, with a 4.0% increase, reaching 5.99 million holders.
The continued growth in Ethereum's wallet holders compared to Bitcoin suggests that Ethereum is solidifying its position as a key player in the broader crypto ecosystem, potentially driven by its versatility in powering decentralized applications (dApps), NFTs, and DeFi.
This could indicate that, in the long term, Ethereum's user base and utility may expand further, possibly even outpacing Bitcoin in terms of overall market adoption. Meanwhile, Bitcoin’s slower growth or slight decline may hint at its more established, store-of-value role rather than active utility.
The growth in Tether wallets suggests that stablecoins will continue playing a crucial role in facilitating crypto transactions and maintaining liquidity across platforms.
Abimbola Adu
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, HODL FM strongly recommends contacting a qualified industry professional.
