Ethereum (ETH), known as the king of altcoins, has had a strong performance in 2024 but has yet to surpass its all-time high (ATH) like Bitcoin (BTC) and other cryptocurrencies. Currently priced at $3,660, with a year-to-date rise of 65.58%, ETH has encountered resistance around $3,800 and has been unable to sustain its price above this level despite multiple attempts in recent months. However, the approval of spot exchange-traded funds (ETFs) for Ethereum announced on May 23 could potentially change this situation. It is expected that the ETFs will attract new institutional and individual investors, leading to a potential boost in ETH’s price.
An Important Victory for Ethereum and ETH
The approval of these ETFs is seen as a significant victory for the Ethereum network and its main asset, ETH. OpenAI’s advanced AI model, ChatGPT-4, was asked to assess the situation and predict the potential price impact on ETH. According to the AI model, the approval of these ETFs could raise the price of ETH to $4,750. This optimistic prediction takes into account factors such as the influx of new investors and increased market sentiment towards Ethereum.
ChatGPT’s analysis also considers the impact of spot Bitcoin ETFs on the price of BTC and incorporates Ethereum-specific factors, such as post-Merge market dynamics, to reach the $4,750 price target.
What’s Next for ETH? ChatGPT Outlines 2 Scenarios
ChatGPT also outlined two scenarios: a bullish scenario and a bearish scenario. In the highly optimistic scenario, if the ETFs result in higher inflows than expected and ETH’s price stabilizes above $4,000, the price could rise to $5,000.
On the other hand, there is a contrary scenario where excessive profit-taking after the listing and trading of the ETFs could cause ETH’s price to drop to around $3,300. This scenario is based on the market reaction observed after the approval of spot Bitcoin ETFs in January, which led to a short but significant market downturn.
Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.
