Ethereum experienced one of the sharpest declines during the recent market correction, losing almost a third of its value in just a few days.
While the Bitcoin price has regained most of its value since its March peak, Ether is still struggling to recover from the recent flash crash.
Could this be the story of Ethereum in 2024? Or maybe there is a chance that Ethereum price will recover before the end of this year and follow in BTC’s footsteps?
Ethereum price history
Ethereum’s journey began in August 2015, with its price remaining below $1 for most of the year. In March 2016, Ether reached $10 and rose to $100 in 2017, ending the year at $774. In early 2018, Ether crossed the $1,000 mark before the 2018 crypto crash caused its value to drop below $100.
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From 2019 to 2021, Ethereum recovered again, reaching an all-time high of $4,815 in November 2021. After a dip in early 2022, Ether began to rise in 2023, reaching $2,500 in January.
Amid a major bull run, Ethereum peaked at $4,000 in March 2023, but corrections in April and June dropped the price to $3,600 before a flash crash wiped $1,000 off its value.
From 2019 to 2021, Ether continued to rise again, reaching its peak price of $4,815 on November 9, 2021.
In the first half of 2022, Ether lost value. In 2023, the ETH price rose steadily throughout the year, reaching a price level of $2,500 in early January.
During the biggest crypto bull run this year amid the Bitcoin ETF craze, Ethereum was one of the most successful cryptocurrencies. At its peak in March, the ETH price reached $4,000.
A major crypto market correction followed in April, followed by a slightly milder one in June. As Ethereum price stabilized at $3,600, a flash crash occurred, wiping out $1,000 of value.
Current situation
With a loss of over $500 billion (14.5%), the crypto market has experienced its biggest crash in a year.
ETH fell as much as 21%, hitting a swing low of $2,112 on August 5 before recovering to the current price of $2,651. Ether’s rise to $2,750 on August 12 faced strong resistance from the supplier congestion zone at $2,800.
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Last week, the crypto market was on the road to recovery. When the Bitcoin price hit $63,000 on Friday, the total cryptocurrency market capitalization rose back to $2.1 trillion.
Despite all the difficulties, Ethereum (ETH) whales started a huge buying spree on Friday, which could potentially mean that they are buying up the low in large transactions.
Gas fees
Another potential problem for Ether could be network validators.
Ethereum is in trouble because gas fees, the main source of income for network validators, have plummeted. This decline threatens validators’ financial incentives and poses the risk of an exodus that could undermine the stability of the network.
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While gas fees typically rise during periods of high demand, the recent drop likely reflects reduced network usage and raises concerns about Ethereum’s long-term security and reliability.
Record ETF inflows
Last week, Ethereum ETF products recorded positive inflows for three consecutive days, generating total turnover of $10.8 million, $24.3 million, and $5.0 million, respectively.
However, after the three-day record inflow, ETH ETFs again recorded a net outflow. On Friday, Ethereum ETFs experienced their largest outflow since August 2, with $39.2 million leaving the market.
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So far, Ethereum ETFs have been widely viewed as disappointing in terms of ETH price, but if inflows return, it could potentially mark a turnaround for Ethereum price.
Price prediction
A long-term crypto forecast must be based on the major Bitcoin cycles that determine the trend for the crypto market in general.
These cycles are usually defined by halving events. When the BTC price recovers from a correction around the halving, the Ethereum price follows the trend.
Historically, Bitcoin prices have surged after halving events. After the first halving in 2012, the price shot up from $12 to $126 within six months. Similarly, after the second halving in 2016, Bitcoin price shot up from $654 to $1,000 within seven months.
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In 2020, after the third halving, the price rose from $8,570 to $18,040 during the same period.
Since Bitcoin has enough room to rise to $70,000 and beyond, it is safe to assume that another bull run for BTC is possible by the end of the year.
Currently, Ethereum is trading for around $2,600. This could be a pivotal moment for Ether that will determine its future for the next few months.
According to trader Peter Brandt, Ethereum is facing another crash in the near future.
Brandt’s prediction suggests the completion of a five-month rectangle pattern and the formation of a rising wedge formation on the intraday chart, which he believes could push the price of ETH to $1,625.
However, Brandt also cautions that these patterns may not always develop as expected, as market movements can be unpredictable.
If this prediction comes true, the Ethereum price will likely be below $2,000 by the end of 2024 – similar to 2022.
