#ETH In the short term, institutions like Fundstrat believe that there may be a pullback in the first half of next year, with ETH possibly dipping to between 1800 and 2000 USD, mainly influenced by macro policies and market sentiment. The technical aspect also shows that the current price is fluctuating around 3000 USD, with clear resistance above. Attention should be paid to the support at 2940 USD and the resistance at 3175–3200 USD.
However, the long-term outlook remains optimistic. Fundstrat predicts that by the end of the year, ETH could rise to 4500 USD, with some even forecasting it to reach 15,000 USD by the end of 2025. Supporting factors include the continuous development of the Ethereum ecosystem, technological upgrades (such as the Pectra upgrade), and the popularization of Layer2.
The price fluctuations of Ethereum are indeed heart-wrenching, influenced by multiple intertwined factors. Let me help you sort out the key points:
One, market supply and demand relationship
Network activity: When the Ethereum network experiences frequent transactions and rising Gas fees, the demand for ETH increases, potentially driving up the price.
Supply mechanism: After Ethereum's transition to Proof of Stake (PoS), the issuance of new ETH decreases, which is beneficial for supply in the long term.
Two, macroeconomic environment
Monetary policy: The Federal Reserve's interest rate hikes or hawkish stance usually lead to a stronger dollar, and risk assets like Ethereum may be sold off; conversely, loose policies may attract funds into the cryptocurrency market.
Economic situation: During periods of global economic uncertainty or high inflation, investors may turn to cryptocurrencies for value preservation, driving up prices.
Three, technological innovation and upgrades
Technological improvements: Successful upgrades, such as increasing transaction speed and reducing fees, may attract more investors and drive prices up.
Upgrade issues: If technical upgrades encounter obstacles or do not meet expectations, it may lead to a decline in confidence and a setback in price.
Four, changes in policies and regulations
Regulatory attitude: There are significant differences in regulatory policies for cryptocurrencies in different countries and regions. Strict regulations may limit development, leading to price declines; loose or supportive policies may promote development, driving prices up.
Five, industry competition
Competitors: New public chains like Solana and Avalanche perform outstandingly in terms of performance, cost, etc., which may divert Ethereum's market share and funds, negatively impacting its price.
Six, market sentiment and capital flow
Market sentiment: The overall bull or bear market sentiment in the cryptocurrency market will directly affect the price of Ethereum.
Capital flow: Changes in institutional capital inflow or outflow, and fluctuations in stablecoin liquidity, will also significantly impact the price of Ethereum.
Seven, technical bottlenecks and governance issues
Scalability: The Ethereum mainnet has limited processing capacity, and explosive growth in the Layer 2 ecosystem may exacerbate the loss of value of the mainnet.
Governance disagreements: Conflicts in ideology among developers on critical paths may lead to delays in upgrades, affecting market confidence.
Eight, competitive pressure
New public chain challenges: Competitors like Solana and Avalanche have advantages in performance, cost, etc., which may weaken Ethereum's market position.
Nine, future technological upgrades
Pectra upgrade: If the maximum stake amount for validators is increased and account abstraction evolves, it may become a key turning point, attracting institutional investors to participate.
In summary, the price of Ethereum is influenced by multiple factors including market supply and demand, macroeconomic conditions, technological innovations, policies and regulations, and industry competition, requiring a comprehensive assessment.
