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ethereum has had a difficult year, but recent insights from industry experts indicate a possible comeback. Matthew Sigel, director of digital asset research at VanEck, recently indicated that ethereum” target=”_blank” rel=”nofollow”>ethereum is oversold.
He believes that increasing speculative interest in the altcoin will allow for its comeback. This comes as Ether attempts to catch up with rivals such as bitcoin and Solana, which far surpassed it in 2024.
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A change in market sentiment
Sigel spoke on the latest episode of The Tie in which he hopes ethereum is going in the right direction. He also noted that although ethereum faces problems, particularly regarding EIP-4844 in which it changes its economic model, opportunities for a “fund” may still arise.
<blockquote class="twitter-tweet”>
.twitter.com/matthew_sigel?ref_src=twsrc%5Etfw” rel=”nofollow”>@matthew_sigel
-VanEck (@vaneck_us) twitter.com/vaneck_us/status/1854314157375361252?ref_src=twsrc%5Etfw” rel=”nofollow”>November 7, 2024
The market is now a bit conservative, but Sigel sees the product falling back into speculation, causing the price to rise again and advocates trading again.
That also puts it in line with larger ethereum. ethereum/predictions” target=”_blank” rel=”nofollow”>expectations. Analysts even expect eth to trade between $2,199 and $3,019 in 2024, with some expecting a rise above $5,000 by 2025.
The excitement generated earlier this year by the acceptance of ethereum spot ETFs has provided a regulated gateway for investors to enter the market, both retail and institutional. This development may lead to massive inflows into ethereum with huge financial inflows, which will further strengthen its price.
Technical analysis and price predictions.
According to the latest technical analysis, ethereum must break above $3,000 to maintain its bullish sentiment, and many analysts believe this could well pave the way for a new all-time high. According to the eth/usd/” target=”_blank” rel=”nofollow”>ethereum Rainbow Chart, we can see all kinds of possible prices for the coming years, with estimates reaching $12,000 by 2030.
However, some are concerned about ethereum's long-term economic strategy. Sigel said that Layer 2 networks have started to claim more ethereum block space, resulting in lower transaction fees and revenue.
This development has led some investors to lose faith in ethereum as a deflationary asset. If this trend continues without changes to more closely link Layer 2 networks with the ethereum ecosystem, VanEck's long-term price objectives may be in jeopardy.
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The way forward for ethereum
Despite these issues, commentators express a genuine sense of optimism about the future of ethereum. The prospect of new speculative activity, coupled with the regulatory certainty provided by ETF approvals, could be exactly the spark for a significant recovery. As the market evolves and reacts to these developments, investors are looking for signs that a positive trend will return to ethereum.
While ethereum faces challenges, experts believe a combination of growing interest and good market conditions could pave the way for a resurgence in 2024 and beyond.
Featured image of DALL-E, TradingView chart
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