The underlying problem of cryptocurrency price volatility is that it is difficult to predict future prices. This is because the currency is prone to volatility and experts say that it is impossible to forecast its future value. Despite the fact that Ethereum is a major digital asset, the price may continue to fall even after its initial rise.
One reason for this is that the network is undergoing a transition from the previous version to a more energy-efficient version, called “Ethereum 2.0”. While this transition will increase the cryptocurrency’s appeal and sustainability, the upcoming market cap is still only a fraction of bitcoin’s.
In early September, Ethereum was on an uptrend and hit its high of May 2021, near $3,972. Then, on September 7-8, the cryptocurrency fell by $900, fueled by the sell-off in BTC. From there, the price of Ethereum was moving down until September 21. At this point, it appears that Ethereum has entered a new downtrend. While the price of Ethereum hasn’t reached the lowest level since May, it does remain in the red, which is good news for investors.
There are several reasons why the cryptocurrency may go back up. The recent London Protocol burnt $1 billion worth of ETH, which caused the price of the currency to surge. Wallet Investor, however, is bearish on Ethereum in the long-term, and says the cryptocurrency could return up to 380% in 5 years. Although there are some short-term spurts in the price of Ethereum, it is likely to take off in late 2022. Therefore, it is not a good time to invest in Ethereum. If you are unsure of the market trend, do not invest your hard-earned money into the market. Instead, prioritize your debts and emergency savings.
After the hack, the price of Ethereum fell below $400. The reason for this is unclear. The hack of Coincheck, the largest cryptocurrency market in Japan, also spooked the markets, and all cryptocurrency prices began to decline. At that point, Bitcoin dropped below $4,000, which led to a downtrend for all cryptocurrencies. Then, in November, ETH’s price started to rise again, and it’s currently at a $1,300 high. In addition, it’s expected to hit a new all-time high by 2021.
After its November 2016 high, Ethereum dropped to around $400. The Coincheck hack, which is the largest cryptocurrency market in Japan, is the main reason for this drop. In November, the cryptocurrency’s price continued to drop until it fell below $4,000 in November. That resulted in a broader decline for all cryptocurrencies, as well. But, it is expected that Ethereum will reach its new all-time high sometime in 2021, and it will continue to fall in the meantime.
Although the price of Ethereum is unlikely to go below $3K, it is unlikely to drop any lower than this point. Its price will depend on how the market reacts to upcoming news and the new features of the coin’s 2.0 version. In 2023, it’s likely to be the most popular cryptocurrency by then. This will increase its popularity and the market cap will continue to rise. This may take a few years for the cryptocurrency to return to $4,000 and break out of the bear market.
This month, Ethereum’s price has been on a downward trend for almost a week. Its recent high was $4,000, and it has remained there since. But, it’s a long way to go. While there are many factors that can impact the price of ETH, the biggest one is the potential of the currency. Its popularity will drive its price to tens of thousands of dollars in the future.
This fall, the market will try to get its revenge. The market will try to retest its historical high. It will decide if it will go up to the $4200 USD level or fall below to $7200 USD. The price will rise to the $8,8383 price level by 2024, and then begin to increase slowly. But, if the bears do hit the top, it might fall to the lower levels of the first year of the new version.