Despite recent setbacks, Ethereum (ETH) shows positive signs ahead of the EIP-4844 upgrade.
JP Morgan, cautious amid market optimism, predicts Ethereum will surpass Bitcoin in 2024.
Ethereum (ETH) has managed to bounce back, defying the recent dip in the crypto market caused by the news of a major hack targeting Ledger, one of the prominent crypto hardware wallet providers. According to CoinMarketCap, ETH is traded at $2,329, marking a1.92% increase in the past 24 hours. However, the digital asset has seen a slight setback over the week, with a decline of close to 3.98%.
Interestingly, JP Morgan, states its cautious outlook on the crypto industry for the upcoming year, has made a bold prediction. Despite expressing concerns and highlighting excessive optimism in the market, JP Morgan analysts foresee Ethereum outperforming Bitcoin in 2024. This surprising forecast comes amidst expectations of a halving event for Bitcoin, which is anticipated to decrease the total number of Bitcoin tokens in circulation.
JP Morgan’s expectations for Bitcoin in the coming year stem from their belief that the impact of the impending halving event is already largely priced into the current value of the asset. Consequently, they do not anticipate substantial gains in BTC over the next year.
Ethereum (ETH) Upgrade
On the flip side, Ethereum’s bullish trajectory is attributed to the eagerly awaited EIP-4844 (aka proto-danksharding) upgrade to the Ethereum blockchain. This upgrade is set to address key challenges faced by the ETH blockchain, namely reducing transaction costs and boosting overall throughput.
At present, Ethereum has displayed positive signs in its price movement, securing a resistance flip at the $2,200 mark. At the time of writing, ETH is trading at $2,280 with a daily trading volume of $13.13 billion. Even if Ethereum’s price corrects to the $1,900 level, a potential rally would push its value up to $2,500.
Further, the optimism surrounding the upcoming EIP-4844 upgrade seems to be a driving force behind Ethereum’s resilience in the market.