Ethereum (ETH) being the second largest cryptocurrency by market capitalization, its performance in the market comes to the fore frequently and a good number of experts have their opinion on this.
So as soon as its value dipped briefly two days ago, most analysts noticed. However, although the price of the ETH token fell by 2.8% at that time, it remained stable around the range of $1500.
In addition, this bearish movement was soon reversed, since during the last 24 hours, the value of Ethereum increased by 3.64%. Its price broke the $1600 mark and is trading currently at $1614 currently, a continuous rise of 17.5% over the past seven days.
The rise and fall of Ethereum
After a start to the year particularly harsh and difficult for the market of the cryptocurrencies, the worst seems to have already taken place. The recent rise in the crypto market over the past few days is one of many signs pointing to the recovery of the industry as a whole.
However, although the bullish moves in the current market have helped Ethereum to emerge from its prolonged downtrend, the latter is still very far from the level it had reached towards the end of 2021. Indeed, on November 10, 2021, ETH and its rival Bitcoin, managed to reach historic highs, with the value Ethereum surpassing $4878.26.
And level still unequaled today since the asset was not only unable to maintain this position, but also saw its value slowly decline.
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The future of Ethereum: soon to reach $3,000?
While it is true that the ETH token has lost almost 69% of its value in just one year, there is a good chance of recovering this position again. Indeed, many experts believe that Ethereum could very soon rise above $3000.
Basically see ETH outpacing until BTC breaks above the major HTF diagonal downtrend in Dec/Jan pic.twitter.com/nMIvSPsVM2
— K A L E O (@CryptoKaleo) October 28, 2022
According Kaleo, reputable cryptocurrency trader and analyst, the Ethereum token is likely to break the $3,000 barrier by next year. He based himself on the results of his analysis of historical price movements and even claimed that such a development is consistent with logic.
What caused Ethereum to drop in value after the merger?
For the vast majority of observers and members of the Ethereum community, The Merge had to ensure the recovery of the value of the token.
A guess that is not not exactly wrong since the altcoin actually saw its value skyrocket following the announcement of the merger implementation.
However, if the value of Ethereum fell after the success of the merger, it is largely because the effects of the update are supposed to have a long term impact and not an impact that can be felt immediately or after a short period of time.
Also, although Ethereum is the second largest cryptocurrency in the world, it is still a cryptocurrency. So, like all other cryptocurrencies, it is affected by the main market forces such as inflation and interest rate hikes.
Can Ethereum really hit the $3000 floor again?
There is no doubt that Ethereum is the best known altcoin in the world. For many investors and crypto enthusiasts, ETH is much more than just a cryptocurrency.
Since its creation in 2015 by Vitalik Buterin, the token has gained tremendous value. Its native token, ETH, saw its price drop from $0.311 when it launched in 2015 to around $4,800 at its highest level in November 2021.
I’m so happy that Ethereum has such a strong culture of trying hard to make all our moon math as understandable and accessible to people as possible. https://t.co/o9n2Xms4Zw
— vitalik.eth (@VitalikButerin) October 26, 2022
Although inspired by Bitcoin, Ethereum is completely different from the latter and other cryptocurrencies by its usefulness. Indeed, Ethereum is an ecosystem bringing together a blockchain network on which developers are able to create and feed new tools, applications et NFT.
One of the specificities of this blockchain network is that it can serve many uses and applications in the world of technology. It is particularly useful for games, music, entertainment and decentralized finance (DeFi). This is also one of the reasons that made ETH one of the cryptocurrencies most popular and most used for a few years.
The last days
During this week, Ethereum has not only regained its $1,500 position, but it went further in the last 24 hours and hit the $1600 mark.
With such momentum, it’s no surprise that the community has high expectations for the future of cryptocurrency. Many experts believe that the value of ETH will rise actually above $3000.
Furthermore, while it is true that the prices of Ethereum and Bitcoin are relatively weak compared to last year, their value is surprisingly stable over the month. This fact is remarkable, as it proves that even during a time of crisis where foreign currencies and the stock market fell, the cryptocurrency market can remain independent.
The whales keep piling up of the Bitcoin and ETH, this is a positive sign for the market and its potential general upside.