Key points:

  • The limited supply of Ether and its use in staking/smart contracts may cause the price to rise.
  • Analysts disagree on the future price of ether, but forecasts are optimistic: from $8,000 to $22,000 by 2030.
  • Ethereum is up 29% this year, despite underperforming Bitcoin.

While ether’s big brother Bitcoin has soared to record highs on a wave of interest in new US exchange-traded funds linked to its price, the world’s second-largest cryptocurrency has remained in the shadows this year.

However, with the impending launch of similar ETFs for Ether, some market experts predict that its price rally could surpass the November 2021 all-time high of $4,867.60.

These Ether ETFs, like those that exist for Bitcoin, are expected to make it easier for investors to access the cryptocurrency without requiring them to directly own the digital asset itself.

Cryptocurrency market influenced by Mt.Gox, Fed and elections

Recent news about the possible reset of tokens from the bankrupt Mt.Gox exchange provoked sharp fluctuations in the cryptocurrency market, collapsing the prices of Bitcoin and Ether.

In addition to Mt.Gox, other factors may affect market dynamics, such as the US Federal Reserve’s decisions on the timing of interest rate cuts and the upcoming presidential election.

Given these uncertainties, investors in the cryptocurrency market should be prepared for the return of volatility in both traditional and digital markets.

In the long term, regulatory changes and macroeconomic policies will play a decisive role in shaping market dynamics.

It is worth noting that Bitcoin reached a new peak in March, soaring to $73,803.25, just two months after the launch of the first spot Bitcoin ETFs, when its price was $45,947.

Ethereum lags behind Bitcoin, but its future is promising

While Bitcoin soared to a new high in March, reaching $73,803.25, Ether is still trading well below its all-time high, stuck at $4,093.70.

Analysts see several reasons for this lag. First, the first spot Bitcoin ETFs attracted $38 billion in assets by the end of June, significantly more than expected for Ethereum ETFs. Secondly, the market capitalization of Ether is approximately three times smaller than that of Bitcoin.

However, experts predict that this could change with the launch of Ethereum ETFs in the coming weeks. The limited supply of Ether and the reduction in its available volume due to staking and smart contracts (about 40% of supply) could result in ETF inflows having a larger impact on the price of Ether compared to Bitcoin.

Crypto asset manager Grayscale Investments predicts that spot Ethereum ETFs could meet 25%-30% of the demand that has previously been focused on Bitcoin funds.

Standard Chartered is more optimistic, forecasting Ether to reach $8,000 by the end of the year, while VanEck raised its Ether price target to $22,000 by 2030. Even though Ether hasn’t matched Bitcoin’s all-time highs, it is still up more than 29% this year.

Experts agree that the impact of Ether ETFs on the market will be significant, but forecasts regarding the exact price of the token vary widely. Investors should closely monitor developments as they assess Ether’s potential in both the short and long term.