Ethereum (ETH) is inching closer to a breakout as market analysts point to significant growth potential for the fourth quarter of 2024. Over the past 24 hours, Ethereum’s price surged over 3%, reaching $2,610 during early European trading hours on Tuesday. The cryptocurrency, often following Bitcoin’s lead, has been showing signs of a possible reversal, excitement among investors.

As Ethereum hovers near crucial resistance levels, experts are weighing in with predictions, both optimistic and cautious, about the future of the second-largest cryptocurrency by market capitalization.

Ethereum’s Push for a Bullish Breakout

Ethereum’s recent price movements reflect a broader recovery in the crypto market, with Bitcoin testing its own resistance level at $66.4k. While Bitcoin grabs headlines, Ethereum quietly continues its steady climb. Currently valued at a fully diluted market cap of $314 billion and boasting a daily average trading volume of $20 billion, Ethereum is catching the attention of investors who see potential in its upcoming breakout.

However, Ethereum’s price has faced some hurdles in recent months. The cryptocurrency has struggled due to selloffs by institutional investors and waning demand. The Discover of Ethereum spot ETFs in the U.S., although highly anticipated, saw a net cash outflow of over $541 million following the Securities and Exchange Commission (SEC) approval, adding pressure to the market.

Despite these challenges, many analysts remain optimistic. Peter Brandt, a well-known market trader, believes that Ethereum’s price is on the verge of a bullish breakout. Brandt has highlighted the formation of an inverted head and shoulders (H&S) pattern, a classic bullish indicator, suggesting Ethereum could soon reverse its downward trend.

The ETH/BTC trading pair also reflects optimism, with a strong support level forming around 0.038. This, combined with a bullish divergence in the Relative Strength Index (RSI), is pointing towards the potential for significant price growth in the near future.

Larry Fink’s Bold Prediction for Ethereum

Adding to the bullish sentiment, BlackRock CEO Larry Fink has expressed optimism about Ethereum’s long-term growth. Fink believes that Ethereum’s network will experience dramatic expansion over the coming years due to its increasing liquidity and transparency. As of now, the Ethereum network leads in Total Value Locked (TVL) in decentralized finance (DeFi) and stablecoin market capitalization, reinforcing its dominance in the blockchain ecosystem.

Fink’s views echo the growing institutional interest in Ethereum, as its applications in DeFi, NFTs, and smart contracts continue to expand. If Ethereum can sustain its position as the go-to platform for decentralized applications, its price could see substantial growth in the coming quarters.

Contrasting Views from Wall Street

While some market players are optimistic about Ethereum’s future, not everyone shares this positive outlook. Justin Bons, founder and CIO of Cyber Capital, has raised concerns about Ethereum’s current state. According to Bons, the Ethereum network faces several challenges that could threaten its long-term viability.

Bons argues that Ethereum is “effectively bankrupt” not only in terms of its intellectual and ethical standing but also economically. One of the biggest issues he highlights is the high transaction fees on Ethereum’s Layer 1 (L1) network, which make it less appealing to everyday users. Compared to its competitors like Binance Smart Chain (BNB), Solana (SOL), and Tron (TRX), Ethereum’s fees remain prohibitively high.

Moreover, Bons suggests that Ethereum’s Layer 2 (L2) solutions, which are designed to alleviate some of these fee concerns, may ultimately hurt the core network’s profitability. DeFi protocols like Uniswap (UNI) are already shifting towards L2 solutions, further reducing the fees collected on Ethereum’s L1 network.

What’s Next for Ethereum?

As we move into the final quarter of 2024, the Ethereum market stands at a crossroads. On the one hand, the network shows strong signs of resilience and potential for growth, bolstered by rising liquidity and institutional interest. On the other hand, Ethereum faces stiff competition from other blockchain platforms, along with criticism over its high fees and network structure.

For investors, the next few months could be crucial. Many believe that if Ethereum can break through its current resistance levels and solidify its position with improved scalability, its price could rally towards new highs. Peter Brandt’s technical analysis, combined with Larry Fink’s long-term growth predictions, suggests that Ethereum could be poised for a strong performance in Q4 and beyond.

However, challenges remain, and investors should keep a close eye on the evolving landscape of the cryptocurrency market. With alternative platforms gaining traction, Ethereum must address its shortcomings to maintain its dominance.