Ethereum (ETH), known as the king of altcoins, has had a strong performance in 2024 but has not yet reached its all-time high (ATH) like Bitcoin (BTC) and other cryptocurrencies. Despite a 65.58% year-to-date increase, ETH has faced resistance around $3,800 and has been unable to sustain its price above this level despite multiple attempts. However, the approval of spot exchange-traded funds (ETFs) for Ethereum, announced on May 23, could change this situation by attracting new institutional and individual investors and potentially boosting ETH’s price.
An AI model called ChatGPT-4 was consulted to evaluate the impact of the ETFs on ETH’s price. According to the model, the approval of these ETFs is a significant victory for the Ethereum network and ETH, with the potential to raise the price to $4,750. This optimistic prediction takes into account factors such as the influx of new investors and increased market sentiment towards Ethereum.
ChatGPT-4 also outlined two scenarios for ETH’s future. In a highly optimistic scenario, if the ETFs lead to higher than expected inflows and ETH’s price stabilizes above $4,000, the price could rise to $5,000. However, there is also a bearish scenario where excessive profit-taking after the ETFs’ listing and trading could cause ETH’s price to drop to around $3,300. This scenario is based on the market reaction observed after the approval of spot Bitcoin ETFs in January, which resulted in a short but significant market downturn.
It is important to note that the information in this article does not constitute investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.
