Ethereum Price Hits $2400: How Will ETH Perform in 2024?

• The Ethereum (ETH) price, despite rumors of a period of stagnation, is now making significant moves as the world’s second-largest cryptocurrency.
• Market analysts predict that 2024 will be a year for Ethereum, closing the gap with Bitcoin’s market dominance.
• As emphasized in recent discussions, the year-end period is characterized by narrow liquidity, making the market sensitive to sudden spikes and drops.

The Ethereum (ETH) price has surged by over 6% in the last 24 hours, reaching $2,400: How will ETH perform in 2024?

Ethereum Price Reaches $2,400

Despite rumors of a period of stagnation, the world’s second-largest cryptocurrency, Ethereum (ETH), is now making significant moves. In the last 24 hours, the Ethereum (ETH) price has risen by over 6%, currently trading around $2,395, with a market value of $291 billion.

Market analysts predict that 2024 will be a year for Ethereum, closing the gap with Bitcoin’s market dominance. In a recent rally, Ethereum (ETH), which has been stagnant for a long time, surpassed $2,400, creating a new high for the year. This rally has led to the implied volatilities (IVs) of all major futures reaching the year’s peak, with the 30-day volatility (DVOL) surging to a new high since April, according to reports from Greeks Live.

Despite this bullish move, option data shows that institutional traders have not yet joined the rally and are holding their levels before following the upward trend. The absence of institutional FOMO (Fear of Missing Out) indicates a cautious approach among these traders.

As emphasized in recent discussions, the year-end period is characterized by narrow liquidity, making the market sensitive to sudden spikes and drops. Investors are navigating this environment by focusing on option purchases that offer an appropriate risk-reward ratio.

For the first quarter of 2024, Ethereum may be more preferred than Bitcoin

So far, Bitcoin has dominated the rally in the cryptocurrency market in the fourth quarter of the year. In contrast, Ethereum has made progress but has not been able to keep up with Bitcoin’s pace. However, market analysts believe that Ethereum will lead the rally in the cryptocurrency market as it enters 2024. Crypto analyst Michael van de Poppe mentioned a pattern that could be emerging, suggesting a model indicating a peak in Bitcoin dominance before the upcoming Bitcoin halving.

According to van de Poppe, this trend usually marks the beginning of a bull market for altcoins, and Ethereum is expected to play a significant role in this stage. Not only ETH, but the entire Ethereum ecosystem is heating up under the leadership of Arbitrum and Optimism. Meanwhile, the Ethereum development team is working on reducing the complexity of PoS, proposing some fundamental solutions by founder Vitalik Buterin.