Ethereum has had a hard year, but recent observations from industry insiders point to a possible comeback. Matthew Sigel, director of digital assets research at VanEck, recently pointed this out Ether is sold out.

He believes that increasing speculative interest in the altcoin will enable its comeback. This comes as Ether tries to catch up with rivals such as Bitcoin and Solana, which have significantly outperformed it in 2024.

Change in market sentiment

Sigel spoke on the latest episode of The Tie in which he hopes Ethereum will move in the right direction. He also noted that while Ethereum is facing issues, particularly regarding EIP-4844 where it changes its economic model, there could still be opportunities for a “bottom”.

.@matthew_sigel “I think ETH is oversold… Speculation will return to this market and I don’t think it will ignore Ethereum.” https://t.co/5pMcZBLzfi

— VanEck (@vaneck_us) November 7, 2024

The market is a bit conservative right now, but Sigel sees the stock returning to speculation, which is pushing prices back up, and is again in favor of such a trade.

This also puts it on par with the larger Ethereum expectations. Analysts even expect the price of ETH to range from $2,199 to $3,019 in 2024, with some expecting it to skyrocket to over $5,000 by 2025.

The excitement generated earlier this year by the acceptance of Ethereum cash ETFs has created a regulated gateway for investors to enter the market, both retail and institutional. This development could result in a massive inflow into Ethereum with huge financial impact, further driving up its price.

Technical analysis and price forecasts

According to the latest technical analysis, Ethereum needs to break above $3,000 to maintain bullish sentiment, and many analysts believe this could pave the way for a recent record high. According to Ether Rainbow Chart, we can see all kinds of possible prices for the coming years, with estimates going as high as $12,000 by 2030.

However, some are concerned about Ethereum’s long-term economic strategy. Sigel said Layer 2 networks have started to take up more of Ethereum’s block space, resulting in lower transaction fees and revenue.

This development has caused some investors to lose faith in Ethereum as a deflationary asset. If this trend continues without changes to more closely tie the Layer 2 network to the Ethereum ecosystem, VanEck’s long-term price goals could be at risk.

The road ahead for Ethereum

Despite these problems, commentators express real optimism about Ethereum’s future. The prospect of recent speculative activity, combined with the regulatory certainty that ETF authorizations bring, could be exactly the spark for a significant comeback. As the market evolves and responds to these events, investors are looking for signs that the positive trend will return to Ethereum.

While Ethereum faces challenges, experts believe the combination of growing interest and forceful market conditions could pave the way for a resurgence in 2024 and beyond.

Featured image from DALL-E, chart from TradingView