Cryptocurrencies are a form of digital money that has been specifically designed to work via the means of computer networks. They are different from traditional holdings, fiat and standard banking as they are not dependent on any central authority for maintenance. Decentralization is one of the most critical aspects for investors, who often feel they are more in control if they can use this system. The first cryptocurrency in the world is Bitcoin, but several altcoins followed its lead and developed blockchains of their own. As of 2023, there were more than 25,000 unique crypto coins in the marketplace, 40 of which have a market cap level exceeding $1 billion.
Most experienced investors are looking for the latest news concerning the Ethereum price in order to create comprehensive strategies for their portfolios. ETH is one of the most important coins in the world, being second only to Bitcoin in terms of market capitalization. However, unlike Bitcoin, it is focused on tech developments and innovation alongside trading ventures, a characteristic that has earned Ethereum a unique reputation within the crypto space. In fact, there are analysts and researchers who believe that its functionality and the ways in which it has approached the blockchain have the potential to help numerous business and industry sectors in the future.
Understanding cryptocurrencies
Crypto coins are not a brand-new asset class anymore, but they are still fairly intimidating for many people. The fact that they are based in the online landscape is confusing for many of those who are familiar with the more traditional trading methods and for whom the concept of intangible holdings is downright suspicious. Many naysayers believe that cryptocurrencies are inherently devoid of any value whatsoever and that investing in them is a surefire way to waste your funds. Much of the misconceptions come from a lack of understanding of how cryptocurrencies and the blockchain space as a whole operate.
Cryptocurrencies are underpinned by special cryptographic systems that allow the completion of online transactions without the need for a third-party entity. The term “crypto” comes from using encryption algorithms and techniques that can safeguard the integrity of these ventures, such as hashing, public and private key pairs, and elliptical curve encryption. Each new block that is included in the more extensive system needs to be verified and confirmed first, meaning that it is impossible to forge or manipulate transaction histories in any way.
Changing any of the data recorded in a block would change the other blocks as well, so modifications are not feasible for this network, and all transactions are final. Financial institutions such as JPMorgan Chase & Co. have already started using blockchain technology to lower transaction costs by making transactions more streamlined.
Crypto enthusiasm
The crypto market has been dealing with significant uncertainties over the last couple of years as a result of controversies involving several exchange platforms accused of illicit activities and the enduring unresolved issues in the regulatory landscape. These factors create difficult market conditions that can be pretty difficult to overcome. One of the clearest ways this became obvious is through the price stagnation, which left many investors unsure of how to proceed. However, after the start of an incredibly strong rally at the beginning of November that saw Bitcoin reach six figures for the first time in its history and Ethereum approach $4,000, the enthusiasm has returned to the marketplace, and most traders are ready to get involved again.
The results of the US presidential elections have led many to believe that the future is bright for cryptocurrencies, as lawmakers who have a more positive view of the marketplace will set the rules. In fact, many believe that the United States is set to become the uncontested crypto capital of the world in the upcoming years as a result of these favorable policies.
Ethereum’s future
As one of the largest and strongest cryptocurrencies in the world, Ethereum is largely expected to have a positive evolution in the upcoming years. Right now, most traders and market researchers are convinced that it will keep growing in the next year after displaying consistently robust performance during the fourth quarter of 2024. According to the latest data, ETH has been forming a cup and handle pattern over the last three years. This is a well-known technical indicator that is considered to be an obvious bullish signal so that the moment it starts forming, investors know that an uptrend is in the making.
It is also used to spot opportunities to go for long positions, and the traders that use it as part of their strategy need to place a stop-buy order above the upper trendline of the handle part. According to this pattern, analysts think a 97% price surge in the near future is a real possibility. In order for this to happen, the $3,800 level must be confirmed as a support area so that growth can continue. The following price targets range between $5,000 and $7,000 and will most likely be recorded at the beginning of 2025. Since November 1st, Ethereum has been growing steadily, recording gains of nearly 50% in the span of the next thirty days.
However, many investors believe that the change isn’t happening quickly enough and that there hasn’t been a decisive breakout yet. Some researchers have noticed a very rare Ichimoku Golden Cross on Ethereum’s weekly chart, signaling that the potential of reaching $5,800 is not as far-fetched as it may seem. Institutional adoption rates have been increasing over the last few years and are expected to continue evolving in the future. This is naturally very good for Ethereum’s future outlook and that of the investors, but having a strong strategy before getting started is even more meaningful in the context of high volatility and fluctuations.
With cryptocurrencies navigating a period of robust gains at the moment, it is clear that digital assets are here to stay and that they will continue to attract large numbers of investors. Many are also getting involved in exchange-traded funds, but avoiding FOMO and making impulsive decisions when you’re in this trading environment is essential. The slow and steady approach and being focused on the long term are the best things you could do when you’re a crypto trader.
