Ethereum (ETH), one of the leading cryptocurrencies, is poised for notable growth in the first five months of the year, historically known as its ‘bulking season’.
Ethereum typically experiences significant gains from January to May, with average returns ranging between 13% to 31%. The month of May often emerges as the peak period, while February usually sees the lowest gains in this timeframe.
Contrastingly, the period from June to December tends to be more unpredictable and volatile for Ethereum, exhibiting a ‘choppier’ performance. This pattern suggests that the early months of the year are critical for Ethereum’s growth trajectory.
Adding to Ethereum’s potential growth in 2024 are several key developments:
1. Prospective Ethereum ETF
The cryptocurrency community is speculating the possible approval of an Ethereum ETF in the coming months. Drawing parallels from the Bitcoin ETF, it is observed that the most significant price surges often occur in anticipation of the approval, rather than post-approval.
2. Dencun upgrade
Ethereum is gearing up for its first major upgrade since the Merge, known as the Dencun upgrade. This event is expected to bring significant improvements to the Ethereum network and is eagerly awaited by the community.
3. Reduced Ethereum on exchanges
The availability of ETH on centralized exchanges has drastically reduced to about 12%. This decrease in accessible Ethereum on trading platforms implies that there is less ETH readily available for purchase, potentially driving up its demand and price.
4. Restaking narrative
Restaking has become a dominant narrative in the crypto world. This trend has enhanced Ethereum’s appeal as an investment, making it more attractive for long-term holding. Investors are increasingly interested in the benefits of restaking, adding to Ethereum’s allure.