The weight that Bitcoin (BTC) carries in the cryptocurrency world is not to be underestimated, as its performance usually dictates the broader market. With Ethereum (ETH) next in line, it is logical that it is the first one to benefit or slump from BTC’s events.
After the SEC approved BTC exchange-traded funds (ETF) in January, sights are already set toward the next notable event, Bitcoin halving, which is set to take place in mid-April 2024.
This week was notable for Ethereum as it surpassed its resistance zone set at $2,800 and is currently trading at $2,835 after gains that have seen its value increase by 1.48% on daily and 13.67% on weekly charts.
ETH 7-day price chart. Source: Finbold
In its pursuit of insights, Finbold opted to seek counsel from OpenAI’s premier platform, ChatGPT, regarding the potential trajectory of the world’s leading altcoin as the halving event unfolds.
ChatGPT makes a prediction on the Ethereum
Although ChatGPT didn’t provide a precise figure, it’s rational to anticipate some price fluctuation for Ethereum in light of the historical correlation between Bitcoin and Ethereum prices.
Nevertheless, factors like Ethereum’s ongoing development, expanding usage in decentralized finance (DeFi), and forthcoming upgrades like Ethereum 2.0 suggest a broader context beyond mere volatility.
However, considering historical movements, the most likely price range was from $8,000 to $12,000.
The most likely price range for ETH after BTC halving. Source: Finbold and ChatGPT
This range derives from Ethereum’s past price trends, its prominent status as the foremost smart contract platform, and the overall expansion path of the cryptocurrency market.
Bullish scenario
In an optimistic scenario, Ethereum might witness notable price escalation fueled by heightened institutional investment, widespread adoption of decentralized applications (dApps), and the successful execution of Ethereum 2.0 upgrades, resulting in enhanced scalability and reduced transaction fees.
This could drive ETH’s price toward the upper range from $15,000 to $20,000.
Bullish scenario for ETH. Source: Finbold and ChatGPT
This scenario also considers the broader upsurge in the cryptocurrency market driven by favorable regulatory changes or macroeconomic instability.
Bearish scenario
Conversely, in a pessimistic scenario, external factors like regulatory crackdowns, vulnerabilities in smart contracts, or scalability hurdles associated with Ethereum 2.0 could erode investor trust and trigger a wave of selling.
Which would, in turn, lower the predicted range from $5,000 to $7,000.
Bearish scenario for ETH. Source: Finbold and ChatGPT
Furthermore, should there be a general downturn in the market or a substantial drop in Bitcoin’s price following the halving, Ethereum could face increased selling pressure.
Interestingly, across all projected scenarios, the price of ETH is anticipated to rise by at least 50% in the least favorable scenario and potentially soar by over 600% in the most optimistic outlook.
However, it’s crucial to remember that these are merely forecasts, and numerous variables from the broader market, which can be exceptionally volatile, must be considered.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
