Ethereum outlook in 2024 is bearish

Ethereum’s community is relatively bearish on the super altcoin, despite the recent uptick in the price. Users on X have been raised regarding the Ethereum Foundation’s consistent sales this year.

Lookonchain data showed that the Ethereum Foundation sold 100 ETH in September. 22. It has sold 3,566 ETH this year, for a total value of almost $10 million.

Ethereum investors are bearish on some other factors. The supply inflation that occurred since the Dencun upgrade and the activity of Layer-2 solutions isn’t beneficial.

Ethereum’s price has trended downward against Bitcoin since December 2021, leading to a decline of over 50 percent. June 2024 saw an acceleration of the decline as ETH broke out of a long-term horizontal support zone.

However, recent price action showed ETH finally produced a bullish candlestick on a weekly spectrum providing some brief respite. Consequently, The altcoin experienced the largest daily outflow since July 29, which occurred yesterday, when spot Ethereum exchange-traded funds saw large net outflows of $79.21 million.

The Grayscale Ethereum Trust (ETHE) was the main cause of the steep drop with withdrawals totaling $80.55 million.

Based on Sosovalue data, this was the largest withdrawal from the fund since July 31. While the remaining seven spot Ethereum ETFs saw no change in their flows,

Bitwise’s ETHW ETF saw net inflows of $1.34 million, in contrast to ETHE’s performance. Even with the notable withdrawals from ETHE, the combined trading volume of all nine Ethereum ETFs increased to $167.35 million from $139.47 million on Friday.

The projected price range for Ethereum in 2024 is between $2,200 and $3,400. The Federal Reserve’s dovish stance on interest rates may make Ethereum an appealing “yield-generating” asset once rates match ETH’s staking yield of approximately 3.5 percent.

A factor that could improve ETH’s performance is the impending launch of Eigenlayer, a significant Ethereum ecosystem project. Furthermore, a strong wealth effect brought about by the recent rise in popularity of Ethereum-based meme coins such as Neiro, has encouraged more users to purchase ETH and participate in early-stage trading of such assets.