Renowned crypto analyst Michaël van de Poppe has set a bullish forecast for Ethereum, anticipating a potential surge to $4,500. Van de Poppe suggests that Ethereum is benefitting from a shift in investment capital from Bitcoin, absorbing its upward momentum.
The bullish prediction aligns with Ethereum’s recent strong performance, witnessing a 9% increase over seven days and a 17.5% rise in one month. Notable Ethereum-based cryptocurrencies like MATIC and OP have also experienced significant gains, rising by 5% and 6%, respectively.
The recent spike in Ethereum’s price, reaching $3,000, its highest level in nearly two years, is attributed to growing optimism around the potential approval of a spot Ethereum ETF by the SEC, mirroring Bitcoin‘s trajectory.
Experts, including Tom Crown (CEO of Crown Analysis), foresee the upward trend continuing, with predictions of Ethereum reaching $3,300 before the end of February. Raoul Pal, co-founder and CEO of Real Vision, has set a more optimistic long-term target, anticipating Ethereum to rise as high as $20,000 during the next bull cycle.
Altcoin Gordon, a Twitter user, has a bullish outlook as well, predicting Ethereum to hit $11,250 by the end of the year. The current market strength of Ethereum could further be fueled by the upcoming Dencun upgrade and potential short-term peaks in Bitcoin, according to analysts.
The Dencun upgrade addresses Ethereum’s limitations in transaction speed and cost by implementing sharding, breaking network data into smaller “shards” to enhance overall computation throughput. Ethereum co-founder Vitalik Buterin emphasizes Dencun as a crucial step towards making Ethereum more “rollup-friendly,” improving scalability, and reducing transaction costs.
The integration of Verkle trees on the Ethereum blockchain is another factor expected to boost efficiency by streamlining storage needs for Ethereum nodes while maintaining block validation capabilities.
Additionally, the approval of a spot ETH ETF by the US Securities and Exchange Commission could contribute to further price increases for Ethereum in the near future. The combination of technological upgrades and positive market sentiment positions Ethereum for potential growth and continued bullish momentum.
