What is happening to the price of Ethereum?

Analysis of Ethereum’s Behaviour in Mid-2022 

The price of Ethereum has fallen steadily since the last all-time high of $486868 in November. During the downtrend movement, the Ethereum price also broke a long-term parallel channel that has been intact since May 2021.

After that, the Ethereum price reached its last low on 18 June 2022 at $881. The bottom of the retracement was traced at the December 2021 low and the last all-time high.

However, the recent low in Ethereum price is also below the horizontal resistance area at $1350. It is also the all-time high of the last market cycle (December 2017). So this is where Ethereum will face resistance.

A large successful test network

Ethereum’s blockchain is about to have a major upgrade. This allows the network to transition from Proof of Work to Proof of Stake. The benefits of these cryptocurrency transactions include limiting gas fees and increasing the scalability and security of the network.

Although this upgrade was scheduled for the end of 2022, several trials were conducted to test the various planned changes before being implemented on the main grid. According to Ropsten, the Sepolia test network was successfully deployed from 2 to 8 July.

KDxcBIsuCfAziGFFOW6S20GKU6yPSY5-pGgvYLizUXBsY5U6qslJ-Td4ZuJ3tJSNnveHbEUNu8rGjieu2sdSCRzZ35HlBUq2T3euGqJLBy6PzJDv5F3RpzMcA9t62o43RidvbTAD9tiZnOYKOjDXd2--PXgOI5jayj1LSBSEe7bbRWKVKIjffdMfLPDuDw

Despite this progress, ETH price remains low

Following the tests, Ethereum’s price went through an uptrend from 4 to 8 July. This jump projected the token to $1278. However, Ethereum has since resumed its underlying downtrend and fails to close above $1300. This inability has many observers fearing a new episode of de-escalation.

Ethereum is trading at $1085 after posting a 10.50% loss in recent days. Since its all-time high in November 2021, Ethereum is down 76.7%.You can also take advantage of this price drop to BNB to ETH on Changelly, which is a secure cryptocurrency exchange and thus be ready for a new rally. 

What are the pros and cons of buying Ethereum?

Always good updates: a plus point for buying in our Ethereum forecast is the technical guidance. Potential bugs or security breaches are always dealt with quickly. In addition, the blockchain can regularly attract attention with interesting and good updates. It is something the crypto community loves and could see a lot of traction in the coming years.

The market cap is sovereign: although not one of the most prominent names, Ethereum has a market cap of over six billion US dollars at the end of 2021. 

It is always trending higher: This puts the currency in a very solid position and not too susceptible to short-term fluctuations. However, as with the currency itself, the market capitalisations of currencies are sometimes very volatile.

They are the basis for NFTs: Generally, NFTs can be traded with Ethreum, which allows the cryptocurrency to have more movement on that side as well. 

Cryptomarkets are very volatile, so buying cryptocurrencies at any price is risky. While prices could return to previous levels, they could also fall further and generate large losses. 

GcCxXWMrGHHTTdGM8C0ASNoOieVtkqvH0Jv6G7HNcC2KiQMx65ZlqQ9jMGOYFACClcZ5sXwT7HwMxA2500RfiGGseTJFNicCrhdCyuNYDTlo1hZH3Vy0hyDmSe2N9_hAEMDImW12zcPZWq8aOA900DM0DtX1ftiX9NnCygCQ45Hu7_RsTiGJGOq-roWYeQ

In the past, cryptocurrencies have recovered after price falls. Ethereum prices in particular have shown some seasonality so far. They seem to lose value to a greater or lesser extent in the spring before recovering in early summer.

Conclusion

In the end it will be decisive how Bitcoin will continue. Because, of course, an increase in the price of bitcoin means that more and more investors from Spain are putting their money into the altcoin market because the risk of investing their money in bitcoin has become too high for them. Of course, this could have a positive impact on the course of Ethereum.

If Ethereum remains stable in 2022, and every Ethereum price forecast for 2022 indicates a stable development, it is quite possible that the Ethereum price trend will exceed USD 2,000 between 2023 and 2024. But our recommendation is always to do your research beforehand and find out all about the general description of the cryptocurrency before buying or selling cryptocurrencies of any kind.