Ethereum Oversold? Researcher Predicts Speculative Surge Could Spark Market Revival

Christian Encila

Last Updated: November 8, 2024 8:00 pm

3 mins read

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Ethereum has had a rough year, but recent insights from industry insiders indicate a possible comeback. Matthew Sigel, VanEck’s Head of Digital Assets Research, recently indicated that Ethereum is oversold.

He thinks that raising speculative interest in the altcoin will enable its comeback. This comes as Ether tries to catch up with rivals such as Bitcoin and Solana, which far exceeded it in 2024.

A Shift In Market Sentiment

Sigel spoke on The Tie’s latest episode in which he hopes Ethereum will go in the right direction. He also noted that, although Ethereum faces problems, particularly regarding EIP-4844 in which it changes its economic model, opportunities can still emerge for a “bottom.”

.@matthew_sigel “I think ETH is oversold…Speculation will come back to this market and I don’t think it’s going to ignore Ethereum.” https://t.co/5pMcZBLzfi

— VanEck (@vaneck_us) November 7, 2024

The market is now a little conservative, but Sigel sees the commodity drifting back into speculation, bringing price back up and advocates to the trade again.

That also places it in line with larger Ethereum expectations. Analysts are even expecting ETH to trade between $2,199 and $3,019 in 2024, with some expecting a spike to above $5,000 by 2025.

Excitement generated earlier this year by acceptance of spot Ethereum ETFs has brought a regulated gateway to investors for entering the market, both retail and institutional investors. This development may cause massive inflows into Ethereum with enormous financial inflows, further buttressing its price.

Ethereum is currently trading at $2,918. Chart: TradingView

Technical Analysis And Price Predictions

According to the latest technical analysis, Ethereum must break above $3,000 to sustain its bullish sentiment, and many analysts believe this may well open roads for a new record high. According to the Ethereum Rainbow Chart, we can see all sorts of possible prices for the following years, with estimates reaching as high as $12,000 by 2030.

Ether price nears the 3k mark. Source: Bitstamp

However, some are concerned about Ethereum’s long-term economic strategy. Sigel said that Layer-2 networks have started to claim more of Ethereum’s blockspace, resulting in lower transaction fees and income.

This development has led some investors to lose faith in Ethereum as a deflationary asset. If this trend continues without changes to link Layer-2 networks more closely with Ethereum’s ecosystem, VanEck’s long-term price targets may be jeopardized.

The Road Ahead For Ethereum

Despite these problems, commentators express a genuine feeling of optimism about Ethereum’s future. The prospect of fresh speculative activity, along with the regulatory certainty given by ETF approvals, could be exactly the spark for a significant comeback. As the market evolves and reacts to these developments, investors are looking for signals that a positive trend will return to Ethereum.

While Ethereum confronts challenges, experts believe that a combination of increasing interest and good market conditions might pave the way for a resurgence in 2024 and beyond.

Featured image from DALL-E, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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