The price of Ethereum has been falling since the end of 2021. While the ceiling of 5 thousand. hole. seemed like an easy target for ETH last year, the current situation is 180 degrees different. Even the much-anticipated The Merge was unable to provide the necessary impetus in a persistently bearish market. What’s more, the collapse of the FTX cryptocurrency exchange also did not change the market sentiment? So is this a good time to buy Ethereum?
Ethereum reached an all-time high of $4,891. on November 16, 2021
The decline in cryptocurrency quotations last year was caused, among others, by the collapse of Terra and the FTX exchange
ETH activities in the cryptocurrency space and the introduction of The Merge will contribute to the increase in ETH prices in the future
The Merge failed to save Ethereum. The collapse of the FTX exchange deepens the decline
After reaching an all-time high of $4,891, on November 16, 2021, Ethereum fell victim to a dramatic decline. Currently, the price of the second cryptocurrency in terms of market capitalization oscillates below the level of $ 1,300. Everything started with the collapse of Terry (LUNA), which was one of the biggest tragedies that hit the crypto market this year. Not only has it dragged down most digital coins, it has also tarnished the image of the industry. Stablecoins, which were considered a safe haven for a long time, have lost their reputation.
Terry quotes, source: CoinMarketCap
Ethereum was not spared either. The digital coin, which was still at $2,700 on May 7, 2022, was at $1,960 less than 6 days later. After a slight recovery, another series of declines followed. On June 19, the rate fell below the barrier of 1 thousand. hole. Also The Merge failed to make a big impact on the price of Ethereum. It was a transition from Proof-of-Work (PoW) consensus to Proof-of-Stake (PoS) consensus, thereby improving the performance of the Ethereum blockchain. Eliminating mining hardware that used a significant amount of computing power reduced Ethereum’s power consumption by 99.988%. Another major blow to the cryptocurrency market was the collapse of FTX, one of the largest cryptocurrency exchanges in the world. The main reason for the bankruptcy was a report revealing the stock exchange’s problems with financial leverage and solvency with the participation of Alameda Research.
FTX quotes over the past month, source: CoinMarketCap Despite a series of declines, Ethereum still has a long way to go. The digital coin is now trading below intrinsic value and still has huge potential for growth in the coming years. According to many analysts, this is one of the best long term projects to invest in early 2023.
Ethereum’s position as the world’s most recognized blockchain remains undisputed. It powers a large ecosystem of DeFi, NFT and gaming applications. While projects such as Cardano, Polkadot and Solana have been hailed as “future killers of Ethereum”, the move to the PoS network has secured ETH from the competition.
So, is Ethereum a good investment? As we know, anything can happen in the cryptocurrency space. Ethereum’s long-term vision and consistent efforts to revitalize the blockchain space, however, do not raise any doubts about credibility. The network and cryptocurrency are expected to grow in the coming years, despite minor setbacks.
Ethereum price forecast for 2023-2030
End of 2023: In the first half of 2023, the crypto market should get back on its feet. The pace is expected to pick up in the second half. The digital coin has the potential to reach $3,450. at the end of the year, despite temporary declines.
End of 2024: Basic regulations for the cryptocurrency market are expected to come into force in 2024, which would pave a smooth path for projects such as Ethereum. Thus, analysts expect the coin to exceed the level of $ 5,800. at the end of the year.
End of 2025: With blockchain going mainstream and clear regulations in place, Ethereum will have no difficulty surpassing $6,300 in 2025.
End of 2030: The period 2025 – 2030 will be the period of Ethereum’s mainstream adoption. What is mostly limited to financial services and gaming would seep into healthcare, education and real estate. $7,500 Level therefore seems achievable within 8 years. As we can see from the forecasts above, it is not too late to buy Ethereum. The cryptocurrency asset still has plenty of room for growth as it continues to innovate its network. Ethereum continues to be at the forefront of the blockchain revolution, especially thanks to The Merge.
Ethereum quotes, daily chart, source: TradingView With the introduction of cryptocurrency regulations, the mass adoption of Ethereum will gain momentum. Of course, this does not mean that the cryptocurrency will be immune to wider market crashes and problems. Despite the inevitable setbacks, the future of Ethereum looks bright.
Frequently Asked Questions (FAQs)
Is it too late to buy Ethereum in 2023?
No, it’s not too late to buy Ethereum in 2023. A long series of price declines in 2022 led to the undervaluation of the cryptocurrency. ETH will regain its value in the coming years. However, this does not rule out volatility and future price crashes.
How to buy Ethereum?
You can buy Ethereum from any credible centralized or decentralized cryptocurrency exchange of your choice. Make sure you keep them in a self-service wallet to eliminate the risk of hacking and mismanagement.
When will Ethereum break the $5,000 barrier?
Ethereum is likely to surpass $5,000 in 2024 unless a major crash slows down the cryptocurrency’s progress.
Is it still possible to mine Ethereum?
Since the introduction of The Merge, Ethereum no longer uses the Proof-of-Work consensus mechanism. In other words, mining has been disabled on the Ethereum network. Instead, you can participate in the online Proof-of-Stake system to earn staking rewards.
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