Ethereum Price Prediction as 24-Hour Trading Volume Surges to $24 Billion – Time to Buy the ETH Dip?
Ether (ETH) continues to chop either side of the $2,000 level as bullish momentum cools following the cryptocurrency’s rejection of a retest of the 2023 highs in the $2,100s earlier this month.
The ETH price was last down around 3.5% on the day in the $1,980s, but still within this week’s $1,930 to $2,100 ranges.
As per CoinGecko, trading volumes recently surged to as much as $24 billion in 24 hours, indicative of the fact that market activity remains elevated in wake of BlackRock’s recent moves to set up its own spot Ethereum ETF.
With Ether back below $2,000 and down more than 7% from its recent highs, some traders might be asking whether now is a good time to buy the dip.
Well, fundamentals certainly suggest so.
Not only is Ether set to continue benefitting from optimism that spot Ethereum ETFs could be coming in 2024, but macro has also been a major tailwind for the crypto market this week, with US stocks pumping and the US dollar and US yields pulling aggressively lower.
Those moves in traditional assets come as macro investors ramp up bets that a US Federal Reserve cutting cycle is coming in 2024 in wake of weaker-than-expected US inflation data for October, that came on the heels of soft US jobs and manufacturing data released earlier in the month.
Dovish policy pivots from the Fed (i.e. a switch from rate hikes to rates cuts) have in recent years generally been very bullish for Ether and other cryptos.
Ether’s supply also recently turned deflationary again amid an upturn in on-chain activity, meaning a higher ETH token burn rate.
As per data presented by Glassnode, the ETH deflation rate was last around 2% per year and the narrative of ETH as a deflationary cryptocurrency could soon regain ground, supporting its price.
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