Ethereum (ETH) has been criticized by the cryptocurrency community for underperforming in the current cycle compared to competitors such as Bitcoin (BTC) and Solana (SOL).
However, an artificial intelligence (AI) tool forecasts that the second-ranked digital asset by market capitalization will end the year on a bullish note.
Currently, the decentralized finance (DeFi) asset is attempting to reclaim the $2,631 support zone. As of press time, ETH was trading at $2,634, dropping over 1% in the past 24 hours. On the weekly timeframe, the asset is up 4.3%.
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AI predicts Ethereum’s price for December 31
For Ethereum’s price by the end of 2024, Finbold gathered insights from OpenAI’s ChatGPT-4o, which projects the asset could reach a potential high of $4,000 by December 31.
In a bullish scenario, the AI model provided “a plausible conservative estimate” that ranges between $3,000 and $3,500, with a more optimistic outlook at $4,000 if adoption and market conditions are favorable.
This potential momentum would be supported by factors such as an improved regulatory environment and significant network upgrades.
On the flip side, if Ethereum faces headwinds such as high inflationary pressure, regulatory crackdowns, and increasing competition, ChatGPT-4o predicts Ethereum could drop into the $1,800–$2,200 range.
Indeed, with Ethereum struggling to keep pace with Bitcoin’s momentum, the network’s co-founder Vitalik Buterin recently hinted at potential elements that could be bullish for Ethereum’s future.
In an October 29 blog post, Buterin highlighted the platform’s next roadmap, noting it intends to bring the Ethereum Virtual Machine to a performant and stable “endgame state.”
This includes incorporating account abstraction in protocol to enhance network security, optimizing transaction fee economics to improve scalability, and reducing risks by implementing advanced cryptography.
What next for Ethereum’s price
Although Ethereum has lost the crucial $2,700 support zone, crypto analyst Ali Martinez suggests the asset is still positioned to reach new highs.
In an X post on October 29, Martinez noted that Ethereum has maintained an upward trajectory within a well-defined ascending channel.
The support level at $2,400 could set the stage for a rally toward the channel’s upper boundary, which currently hovers around $6,000—a level the expert noted is likely to be attained by 2025.
Finally, Ethereum is showing potential for bullish momentum in the short and long term, given that its price remains well-positioned above the asset’s 50-day and 200-day simple moving averages.
For any sustained upward movement, ETH needs to hold its valuation above $2,500 for a realistic target towards $3,000.
Featured image:
H_Ko – 12 January 2022. Digital Image. Shutterstock.
