Ethereum’s Return to All-Time Highs Unlikely This Year, Says Expert

A return to Ethereum’s peak of $4878 by year-end is “possible, but highly unlikely,” according to Derive founder Nick Forster, as reported by Cointelegraph.

The expert asserts that ETFs based on the asset are losing out to tech stocks that offer “higher returns.” Additionally, the second-largest cryptocurrency lacks a “strong narrative capable of driving its price.”

According to the options market, the probability of a return to the ATH is 10%, Forster noted.

In his view, three main events must coincide for this to occur:

• Donald Trump winning the U.S. presidential election;
• aggressive rate cuts by the Fed;
• a broader increase in global financial liquidity.

Forster observed that a potential spike in volatility following the announcement of the U.S. election results could reach 10-15%. This effect could surpass the launch of ETH-ETF trading.

A trader known as Zen warned that the Fed’s monetary policy easing might not yield the expected positive reaction.

#Ethereum reached dip buy zone I’ve marked about 2 weeks ago. There was an option with long above 2800, but price action shown that $ETH is not ready. And it went down fast together with the rest of the market.

Now not that clear. Feels like price will grow higher, but to… pic.twitter.com/3l70ijMWhM

— Zen (@WiseAnalyze) September 4, 2024

“Be careful. A 25 bps rate cut could be ‘bearish’ news,” he wrote.

A trader known as Titan of Crypto pointed out the RSI’s drop into “oversold” territory on the three-day chart, creating potential for a rebound.

#Ethereum Ready for Liftoff?

Historically, when the RSI is in or near oversold territory on the 3D chart, #ETH sees either a rally or a short-term pump.

Either way, an upward move seems just around the corner. ? pic.twitter.com/si8Ab0rMls

— Titan of Crypto (@Washigorira) September 5, 2024

In August, Nansen experts noted that waning optimism among Ethereum investors had a more significant impact on the asset’s price than outflows from related ETFs.

In the same month, QCP Capital highlighted the substantial lag in the performance of the second-largest cryptocurrency compared to Bitcoin. They also warned of a potential continuation of market correction in September.

Earlier, CryptoQuant assessed a 44% drop in Ethereum’s price relative to digital gold following its transition to the Proof-of-Stake consensus algorithm.