4 FOMO and 4 FUD Reasons for Ethereum Price in Q2. “April showers bring May flowers,” goes the old Northern Hemisphere weather aphorism. How will the crypto exchange markets do in the second quarter of 2024 following the severe correction that occurred in April?
May may bring a market recovery, but whose blossoms will be the most radiant?
Is the king of smart contracts, Ethereum, going to soar to the top of the charts in the second quarter, or will Binance, Solana, Cardano, or Aptos take the lead in DeFi gains? The price of Bitcoin is expected to go on its fourth bull run soon. In the last year, the cost of Ethereum has increased by about 100%. Going back 30 days, Ether has lost more than 4% of its value. At the same time, in the five days leading up to Monday, the price of ETH increased by nearly 7%. In the second quarter of 2024, four arguments favor Ethereum’s FOMO movement and four against it based on FUD (fear, uncertainty, and doubt).
FOMO:
This list of benefits follows Bitcoin’s halving at block height 840,000 on Ethereum.
1. Ethereum Price $4,000 Is New Goal
After breaking through $3,000 in February, Ethereum finally broke through $4,000 on cryptocurrency exchanges in March, a feat not seen in two years. The asset hesitantly attempted $3,200 on Monday following a significant decline. If bulls can break past this resistance level, the market will likely continue to rise until it reaches its previous April peak, which is near $3,700.
On Friday, November 12, 2021, the market capitalization of the second-largest cryptocurrency in the world reached a new record high of $4,808.74. Last quarter, Ethereum blew beyond $3,000. Bulls are aiming for $4,000 next and maybe $4,800 in 2024.
2. Shiba Inu Is Becoming An L2
Gathering and evaluating activity and performance measures among a Layer-1 blockchain’s most popular Layer-2 decentralized applications (DApps) is one-way bitcoin investors assess the health of the blockchain.
Investing in a robust ecosystem that has a large number of active users, a significant volume of transactions, and a tendency for sustained growth is usually a better bet because of the security it provides. Shiba Inu, an ERC20 token and a meme coin, has been a leading indicator of Ethereum pricing in Q2, giving hope for the future of ETH.
Shiba Inu was born in August 2020 as a joke coin similar to Dogecoin. However, SHIB has evolved into a fully functional Layer-2 Ethereum-scaling ecosystem, with decentralized applications backed by final settlement on the base chain of Ethereum, in contrast to DOGE, a proof-of-work (mineable) Layer-1 coin.
A key SHIB developer made a significant revelation earlier in April, and a crucial Shiba Inu measure spiked by 1,000% in the same month. So, many people who put their money into cryptocurrencies are apprehensive that they won’t be able to profit from Ethereum in 2024.
3. L2 – Polygon, Arbitrum, and Optimism Scaling
Layer-2 scaling chains on Ethereum, such as Shiba Inu, Polygon (MATIC), Arbitron (ARB), and Optimism (OPT), are all exhibiting tremendous growth in the second quarter. If you look at their X.com timelines on Monday, you’ll see that these L2s have been quite active and developing, which bodes well for the price of Ethereum.
A gaming content developer recently retweeted a post from Polygon Labs that said, “Games are leaving Polygon? Take another look. Attracted 700,000 unique users in the last seven days and 1,300,000 unique users in the previous 30 days; gaming on Polygon was a huge success. The total number of users has increased by 1113%, and the number of TXNs has risen by 1299% in the last week.
The team at OP Labs announced on Monday that Superchain L2s can communicate with one another. “Hopefully coming soon,” in reaction to the announcement that the Celo blockchain’s creators have chosen Optimism as the Ethereum platform over which Celo’s Layer-2 would be built. On Monday, AltLayer unveiled their new Layer-3, powered by Arbitrum and Eigenlayer.
4. Ether TVS On Sharp Uptrend
A proof-of-stake cryptocurrency’s “total value staked” (TVL) or “total value locked” (TVL) measures the sum and market worth of all tokens locked or staked at any particular moment.
By utilizing power-hungry proof-of-work hash problems and a distributed ledger of verified hashes, Bitcoin was able to eliminate double spending and address the Byzantine General’s Problem for decentralized networks.
The same issue is addressed by innovative contract cryptocurrencies, which enable users to stake tokens to participate as nodes. In a perfect world, a greater TVL would boost the token’s value on the market. Based on its TVL measures, Ethereum’s price might be worth waiting for the next big thing. A week remains in April, and Ethereum TVL has surpassed $53 billion. Tron (TRON), its closest rival, has $8.6 billion in TVL, according to statistics from CoinGecko. According to Cryptoquant data, Ethereum Price in Q2 TVL has steadily increased from April 2021 till March of this year.
The most recent statistics from DefiLlama shows that out of the total TVL, $29B is staked using Liquid Staking with Lido, $14B is staked using EigenLayer, and $9B is staked through the lending platform AAVE.
FUD:
Here are some headwinds working against Ethereum prices in Q2 2024.
5. Prediction: Ethereum ETF Delay At SEC
Although the Ethereum price in Q2 has many investors worried about missing out, the asset’s future is not necessarily bright. Regarding Ethereum, the United States Securities and Exchange Commission (SEC) is a constant worry.
There are two ways the SEC might hurt Ether prices: 1.) The government agency is persistent in its efforts to have Ethereum coins deemed securities. Also, Wall Street investors may have to wait for the regulator to approve an Ethereum ETF.
This is significant because, once approved, Ethereum Price in Q2, ETFs, according to VanEck, might surpass Bitcoin funds in terms of performance. Fidelity and VanEck, two Bitcoin ETF issuers, had anticipated the SEC’s approval of an Ether ETF. Still, they predict the regulator will not do so by the late May deadline.
6. SEC Investigating Ethereum As Security
Fortune Crypto reported on March 20 that the SEC is “waging an energetic legal campaign to classify Ethereum, the second-most popular cryptocurrency, as a security.”
The commission has served Many organizations with subpoenas, leading many to believe that the SEC may suit to have Ethereum tokens classified as a security. The asset’s value is being weighed down by developments linked to this potential, which poses a persistent danger to long positions in Ethereum. Even if the SEC’s campaign is successful, Ether will still face significant FUD.
7. Competition From Bitcoin and Other PoW Chains
Despite decentralized financial infrastructure (DeFi) being one of the world’s most rapidly expanding industries in 2024, investors should be wary of Ethereum due to competition from proof-of-work blockchains such as Bitcoin, Dogecoin, Bitcoin Cash (BCH), Litecoin (LTC), Ethereum Classic (ETC), and Stacks (STX).
Cryptocurrencies that used smart contracts, such as Bonk Inu, Shiba Inu, Pepe, Floki Inu, and dogwifhat, gained the most value in 2023. New peaks might be set in 2024 if they do it again. However, by 2024, the Bitcoin halving may have passed, and attention may turn to scarcity and supply, with deflationary PoW blockchains reaping the benefits.
8. Competition From Solana, Cardano, and Avalanche
Solana, Cardano, and Avalanche are just a few of the other DeFi blockchains that Ethereum investors should be wary of. According to Coin Bureau cryptocurrency analyst Guy Turner, who shared this prediction with his two million YouTube subscribers, Solana is expected to experience a 100% rise to $300 soon.
Cardano (ADA) is currently showing some technical signals on its chart, which could indicate a massive surge ahead for the cryptocurrency. The market hasn’t seen Avalanche (AVAX) reach $329 million in daily transaction volume since May 2022, which happened last month.