Key takeaways:
- Ethereum price is forecasted to surge over +82% in the next 6 months to around $4,496 following the 2024 Bitcoin halving based on historical patterns.
- Ethereum has historically performed well after previous Bitcoin halvings, with gains of 1.8% after 2016 and 88.6% after 2020
- Upcoming protocol upgrade like the EIP-4844 or proto-danksharding is expected to enable Ethereum to scale from 15 TPS initially to an estimated 1,000 TPS
- Experts remain bullish on Ethereum’s future, with price targets as high as $15,000 by the end of 2024. The ongoing developments make ETH well-positioned for the next crypto bull market.
Ethereum Price Prediction: Here’s How High AI Thinks ETH Will Go After the 2024 Bitcoin Halving
Recently within the crypto space, all eyes are on the highly anticipated 2024 Bitcoin halving event. The upcoming halving is expected to usher in a new crypto bull market and have wide-reaching impacts across the industry. According to our algorithm, one digital asset poised for enormous growth following the 2024 halving is Ethereum.
It’s not news that Ethereum (ETH) is the second-largest cryptocurrency after Bitcoin, with a current market cap of over $200 billion. Powering billions in decentralized finance (DeFi) transactions, the digital asset has firmly established itself as the leading smart contract platform.
Our algorithm has forecast that Ethereum could surge over +82% in the next 6 months to earch a new high price of 4,496 following the 2024 Bitcoin halving. This bullish outlook is based on several key factors outlined below.
The Bitcoin Halving Cycle
First, let’s review the Bitcoin halving and its historical effects. Bitcoin’s code was designed to cut the block reward for miners in half every 210,000 blocks, or approximately every 4 years. This halves the supply of new Bitcoin entering circulation.
The first halving was in 2012, the second in 2016, and the third in 2020. After each halving, Bitcoin has seen a dramatic surge in price over the following 12-18 months. For example, Bitcoin rose over 8,000% in the year after the 2012 halving.
This pattern has held true over the last decade, with each halving igniting tremendous momentum. Most industry experts anticipate the 2024 event will kick off Bitcoin’s next major bull run. This macro tailwind could also lift prices across the crypto sector, including Ethereum.
Ethereum’s Price Performance After Previous Halvings
Although a relatively new asset, Ethereum already has an impressive track record following Bitcoin’s halving cycles.
However, Ethereum was launched in 2015, so it didnt experienced the first bitcoin halving but experienced the second halving in 2016. At that time, ETH was trading around $11. In the year following the halving, Ethereum’s price surged a bit by 1.8% to around $11.7.
The second halving occurred in 2020, with ETH trading near $211. Over the next 3 months, Ethereum climbed over 88.6% to it’s all-time high above $398
This data shows Ethereum has benefited tremendously from the increased crypto activity surrounding past halvings. Even modest percentage gains would boost ETH significantly from today’s price of approximately $2,426.
Recent Developments Strengthening Ethereum’s Outlook
Beyond historical patterns, Ethereum’s tech improvements and adoption metrics point to a very bullish future.
In September 2022, the Ethereum blockchain underwent its largest upgrade ever, it was called the Merge. This transitioned Ethereum from an energy-intensive proof-of-work consensus to a much greener proof-of-stake consensus.
The Merge paves the way for massive scaling upgrades like sharding. Lower fees and faster speeds which made Ethereum more usable for global mass adoption.
Additionally, developers are working on implementing EIP-4844, also known as proto-danksharding. According to a report, the upcoming upgrade will introduce a new transaction type that can carry blobs of data. By attaching this additional data to blocks, EIP-4844 will increase throughput from 15 TPS to an estimated 1,000 TPS initially.
Full danksharding based on EIP-4844 is expected to scale Ethereum to over 100,000 TPS according to researchers. This major protocol upgrade demonstrates the ongoing innovation of Ethereum developers to meet the demands of global adoption.
Ethereum retains its dominance in crucial areas like non-fungible tokens (NFTs), stablecoins, and decentralized finance (DeFi). Billions worth of value flows through Ethereum dApps daily, evidencing the network’s maturity.
Major multinational corporations are also launching Ethereum-based initiatives, further demonstrating its advantages as an enterprise blockchain solution.
Expert Price Predictions Support Ethereum’s Outlook**
In addition to AI forecasts, expert analysts in the crypto space also view Ethereum very favorably ahead of the 2024 halving.
In a report, JPMorgan analysts set a bullish target for ETH in 2024, saying “While we are cautious on overall crypto markets into 2024, we are looking for ethereum to outperform bitcoin and other cryptocurrencies next year helped by the forthcoming EIP-4844 upgrade or Protodanksharding”.
Finally, Crypto YouTuber and analyst Lark Davis predicts Ethereum could reach up to $15,000 by the end of 2024, and make a lot of people millionaires through Etheruem Layer-2-2assets.
Ethereum Will Make Millionaires In 2024, BUT Not How You Think pic.twitter.com/00YCLPyGCl
— Lark Davis (@TheCryptoLark) December 25, 2023
Botton line: The Key Takeaway on Ethereum’s Future
While short-term volatility in crypto markets will continue, the long-term outlook for Ethereum appears decisively bullish. Driven by the 2024 Bitcoin halving, ongoing technological progress, and maturing global adoption, Ethereum is firmly on the path towards capturing greater value.
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