The weight that Bitcoin (BTC) has in the cryptocurrency world cannot be underestimated as its performance usually depends on the broader market. With Ethereum (ETH) next in line, it makes sense that it would be the first to benefit or collapse from what is happening with BTC.
After the SEC approved BTC exchange-traded funds (ETF) in January, it is already eyeing the next notable event: the Bitcoin halving, scheduled to take place in mid-April 2024.
This week was notable for Ethereum as it broke above its $2,800 resistance zone and is currently trading at $2,835 after rising 1.48% on daily charts and 13.67% on weekly charts.
ETH 7-day price chart. Source: Finbold
In search of insights, Finbold decided to seek advice from OpenAI's leading platform, ChatGPT, regarding the possible performance of the world's leading altcoin in the wake of the halving.
ChatGPT makes a prediction on Ethereum
Although ChatGPT did not provide exact numbers, given the historical correlation between Bitcoin and Ethereum prices, it is reasonable to expect some price fluctuations for Ethereum.
Still, factors like Ethereum's ongoing development, increasing usage in decentralized finance (DeFi), and upcoming upgrades like Ethereum 2.0 suggest a broader context beyond mere volatility.
However, considering historical movements, the most likely price range was between $8,000 and $12,000.
The most likely price range for ETH after the BTC halving. Source: Finbold and ChatGPT
This range arises from Ethereum's past price trends, its prominent status as a leading smart contract platform, and the overall expansion path of the cryptocurrency market.
Bullish scenario
In an optimistic scenario, Ethereum could see a significant price increase fueled by increased institutional investment, widespread adoption of decentralized applications (dApps), and the successful completion of Ethereum 2.0 upgrades, resulting in improved scalability and lower transaction fees.
This could push ETH price into the upper $15,000-$20,000 range.
Bullish scenario for ETH. Source: Finbold and ChatGPT
This scenario also takes into account the broader cryptocurrency market upswing caused by favorable regulatory changes or macroeconomic instability.
Bearish scenario
Conversely, in a pessimistic scenario, external factors such as regulatory measures, vulnerabilities in smart contracts or scalability hurdles related to Ethereum 2.0 could undermine investor confidence and trigger a wave of selling.
This, in turn, would lower the forecast range from $5,000 to $7,000.
Bearish scenario for ETH. Source: Finbold and ChatGPT
Additionally, if there is an overall market downturn or a significant drop in the Bitcoin price post-halving, Ethereum could face increased selling pressure.
Interestingly, in all forecast scenarios, the price of ETH is expected to rise by at least 50% in the worst case scenario and possibly over 600% in the most optimistic scenario.
However, it is important to remember that these are only predictions and must take into account numerous variables in the broader market, which can be exceptionally volatile.
Disclaimer: The content of this website should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.
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