Ethereum Price Forecast, Why It Won’t Hit $5,000 By 2024: Crypto Exec

  • Joshua Fernando is the CEO and co-founder of blockchain startup eCarbon.
  • The 24-year-old exec explains why traditional stocks are strongly correlated with major cryptocurrencies.
  • Ethereum is up 42% over the past month, currently trading near $1,632.

Many investors jumped into Ethereum as it approached $4,847.54 last year. Joshua Fernando, a former senior associate and derivatives trader at S&P Global, jumped to $45 in 2016 – when it started a 10,672.31% rally to its record price.

Like most people, Fernando was skeptical of ethereum when he first heard about it. His older cousin poured his savings into ether, and once the investment doubled, the 24-year-old considered allocating it too. Fernando says he sold his ethereum as soon as he made 20% returns, adding that as a professional trader his “risk tolerance is extremely low”. But then he bought it back and has continued investing through dollar cost averaging ever since.

Years later, Fernando sees more long-term potential than ever in tier 1, even starting eCarbon – a blockchain company focused on environmental products. The co-founder predicts that ether, which was trading near $1,632.45 on Thursday, will not hit $5,000 until at least 2024.

This is a change in tone, however, from excited crypto executives and companies who have called for crypto prices to increase at exponential rates. In research conducted by Finder, some fintech experts predicted that ether could reach over $50,000 by 2030. Antoni Trenchev, co-founder of cryptocurrency lender Nexo, told CNBC that bitcoin could also reach $100,000 “within of 12 months”.

A high correlation with traditional stocks

Much of Fernando’s forecast boils down to macroeconomic factors; he says that ethereum will not begin to fully recover from its slump until traditional markets do. While the Federal Reserve promises to crush inflation with interest rate hikes, investors are wary of speculative betting in general.

“I really think we need to see the real traditional stock market come back up every year in a bull market fashion to really see that,” Fernando told Insider.

He added that as cryptocurrencies become more “mainstream”, investors will treat their investments like traditional stocks, which brings the correlation between the two even closer. “This issue,” according to Fernando, is that people are thinking of ethereum as “just another investment in technology.”

Ethereum’s highly anticipated series of network updates called The Merge could also contribute to the general adoption of your network. The next update, scheduled for September, will transition the network from an energy-intensive proof-of-work to a proof-of-stake consensus mechanism.

Amid crypto’s troubled market cycle, the asset class has shown signs of potential recovery, however. Ethereum is up 42% last month, according to Messari, while Bitcoin is up 17% over the same period. This follows a series of bearish news for the space that has left investors – institutional and retail – accessing systemic risks and contagion concerns for the ecosystem. Last month, centralized lender Celsius and broker Voyager Digital filed for bankruptcy.

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