Ethereum upgrade EIP-4844 to help ETH outperform Bitcoin in 2024: JP Morgan
- JP Morgan analysts have predicted that Ethereum will likely outperform Bitcoin and other cryptocurrencies post its EIP-4844.
- The upgrade is expected to lower Ethereum transaction cost for users and drive Ether’s adoption.
- Analysts have predicted Ethereum price rally to the zone between $3,400 and $3,800 in the first quarter of 2024.
Analysts at the Wall Street banking giant JP Morgan said in a research note that they believe Ethereum is poised to outperform Bitcoin in the first quarter of 2024, The Block reports. The bullish thesis for ETH stems from the upcoming EIP-4844 upgrade to Ether’s blockchain.
The upgrade will power proto-danksharding on the Ethereum chain and reduce transaction costs for users. Find out more here.
Also read: When is EIP-4844, and why is it considered the biggest game changer for Ethereum?
Ethereum to outperform Bitcoin with this upgrade
The Ethereum network’s most anticipated upgrade following the Merge is proto-danksharding, EIP-4844. The upgrade is expected to reduce transaction costs and boost throughput, two of the key challenges faced by the ETH blockchain presently.
Vitalik Buterin, the co-founder of Etheruem has stressed the importance of reducing ETH transaction fees on several occasions during interviews. Core developers are therefore focused on tackling the challenge with EIP-4844, in the first quarter of 2024.
According to a research note by banking giant JP Morgan’s analysts, this upgrade in itself is expected to boost the altcoin’s adoption and help ETH outperform Bitcoin and its crypto competitors.
According to TheBlock, analysts led by Nikolaos Panigirtzoglou wrote in a note,
We believe that next year Ethereum will re-assert itself and recapture market share within the crypto ecosystem. The main catalyst is the EIP-4844 upgrade or Protodanksharding, which is expected to take place during the first half of 2024.
Ethereum price rally to $3,800 likely in 2024
Crypto analyst and trader Michaël van de Poppe analyzed the Ethereum price chart and predicted an ETH price rally to the range between $3,400 and $3,800 in the first quarter of 2024.
ETH/USDT 3-day chart
The analyst notes that Ethereum price made a positive support and resistance flip at the $2,125 mark. Even if Ethereum price corrects to the $1,900 level, a run up to $3,400 is expected.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
