Ethereum Could Surge to $4,000 in Coming Days, Experts Predict
Ethereum’s price has hovered around the $3,500 mark in recent days, reflecting a stabilisation within the broader crypto market after several weeks of volatility. At the time of writing, ETH is positioned firmly within this range, but analysts are divided over its near-term trajectory, citing a mix of bullish and cautious perspectives.
Optimistic Outlook Despite Volatility
As November draws to a close, there is a prevailing sense of cautious optimism among Ethereum investors. Analysts have pointed out that Ethereum could reach as high as $4,000 by the end of the month if current market conditions continue. This projection is supported by recent developments in Layer-2 solutions, which are expected to reduce transaction fees and increase the scalability of Ethereum’s network. These factors are seen as pivotal in driving ETH’s adoption, especially in the burgeoning decentralised finance (DeFi) space.
However, despite these optimistic projections, there are concerns over Ethereum’s underperformance in key areas. The network has seen a decrease in daily active addresses, which has contributed to a slump in transaction volume. Additionally, Ethereum’s total value locked (TVL) in DeFi has shown only modest growth compared to competitors like Solana, whose TVL grew significantly more.
Ethereum’s Role in DeFi and Layer-2 Growth
One of the major drivers for Ethereum’s potential price increase is the continued expansion of DeFi on its network. Ethereum remains the dominant platform for DeFi applications, holding more than 50% of the market share. Analysts believe that if this growth continues, Ethereum could see its price surge, with some predicting a short-term rally towards $3,500–$4,000.
Here's a controversial opinion: I'm bullish on ETH for 2025, despite the current wave of criticism.
Consider this:
• ETH holds over 55% of all DeFi TVL ($60b). • 400,000 active addresses in just the past 24 hours. • More than 50% of all stablecoins are deployed on Ethereum.…
Jake Pahor, a notable figure in the DeFi community, has expressed confidence in Ethereum’s long-term potential. He remains bullish on the network despite the criticisms it has faced recently, citing its stronghold over DeFi’s total value locked and its ongoing innovations.
Technical Challenges and Market Sentiment
On the flip side, Ethereum’s price has been under pressure due to an increase in its circulating supply. A recent slowdown in Ethereum’s burn rate has led to a rise in the token’s total circulation, which could create downward pressure on prices in the short term. Market sentiment remains mixed, with neutral social media sentiment surrounding ETH.
What Lies Ahead for Ethereum?
As Ethereum aims to build on its Layer-2 solutions and further expand DeFi, analysts remain divided. Some experts forecast that ETH will maintain a stable price near $3,500 for the remainder of 2024, while others are more optimistic, predicting a price increase to the $4,000 range.
One part of L2 scaling is Ethereum increasing its blob capacity. The other part is rollups becoming more data-efficient. Good to see @Starknet rising to the challenge.
Ethereum’s price is currently stabilising around the $3,500 mark, supported by advances in DeFi and Layer-2 technologies. While some analysts remain optimistic about the potential for Ethereum to surpass this level, the network must address challenges such as low transaction activity and increasing circulating supply to fully realise its price potential in the coming weeks.
