The cryptocurrency market has been plagued by low prices and general uncertainty. This turmoil reflects the general economic hardship sweeping through the global markets. But how are these issues affecting Ethereum in particular? Will this famous coin survive the chaos?
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Here are some of the reasons why the crypto market and ETH, in particular, are struggling:
The first and most important reason is the current cryptocurrency cycle.
Every economic market has natural cycles that influence the prices of commodities in that market. These cycles are characterized by price differences, which result in varying economic possibilities and risks. The cryptocurrency market follows comparable cycles, and we are currently witnessing one that is decreasing crypto values.
In cryptocurrency markets, the cycle is divided into four distinct phases: accumulation, markup, distribution, and markdown.
Market attitude is dominated by skepticism and uncertainty. People are unsure whether or not to re-enter the market because no obvious patterns can be observed. The coin's price might either continue to fall or start rising. However, the accumulation phase is often regarded as the end of the declining trend.
The markup phase, also known as the bull market period, happens when the market steadily increases in price. Market attitude is buoyed by hope and enthusiasm as coin prices rise. As a result, the volume of trade has increased.
The distribution phase follows, during which the market's buyers and sellers are in balance. Some market participants continue to look to buy, assuming that the bull market is not yet over. Then there are the conservative sellers who want to lock in their profits while the market is still stable.
Finally, we have the markdown phase, during which prices begin to fall. This is the period we are now in, and it is also known as a crypto winter. Prospects will appear bleak this winter, but it's never all doom and gloom.
This lack of bullish investors allows for technical corrections. A correction is typically defined as a 10% drop in the price of a coin over the course of 7-10 days. It is also vital to note that the drop must be less than 20%. These corrections are beneficial to the market because overbought indicators can be reset, among other important adjustments.
Each cryptocurrency market cycle lasts approximately four years, but it can sometimes last only a few months. The duration and type of cycles experienced in a crypto market cycle are determined by a coin's link with Bitcoin as well as other, often unpredictable socioeconomic pressures.
Ethereum price prediction for 1 day and 1 weekThe FED (Federal Reserve System) recently raised interest rates. Although one would anticipate the FED to have a greater impact on stocks, it is important to remember that the stock and cryptocurrency markets have always been linked. As a result, it stands to reason that FED policies will influence the price of the cryptocurrency.
This increase is meant to try to curb the out-of-control inflation seen in global markets. As a result, some markets are faltering as investors navigate the murky economic waters. Cryptography is incorporated.
The first round of FED meetings took place in January 2023, lasting through June and July. Prominent coins saw a significant decrease. The losses in July were less dramatic, but as we can see, FED policies have an impact on cryptocurrency values.
The FED will have to act as long as inflation and other economic concerns afflict global markets. As a result, we should expect to see these trends for a long time.
Given all of these concerns, now is a fantastic time to reevaluate meme currencies. Because of their availability and volatility, these coins have recently gained prominence. However, the same qualities that have increased their demand are also the ones that make them vulnerable in these difficult economic times. If you must invest, avoid them for the time being.
The mainstream adoption of Ethereum has made it highly susceptible to fluctuations in SPX. As we mentioned with the FED, crypto, and stocks have always been connected, but now, even more so. The inflation and socio-economic issues affecting global markets are affecting the stocks and are now going to affect crypto on a larger scale.
Ethereum is undoubtedly one of the most affected since it was one of the most adopted. It was used in both the Metaverse and NFTs as well.
Ethereum 2.0 is an upcoming set of upgrades that aim to speed up transactions, reduce gas fees, boost productivity, and increase scalability.
The goal is to accelerate Ethereum’s usage and adoption by improving its performance. It also aims to address the weaknesses of the proof-of-work model by moving to proof-of-stake.
The current Ethereum network can only support 30 transactions per second, while Ethereum 2.0 promises up to 100,000 transactions per second. The new Ethereum network will also be more decentralized and secure. Because the new Ethereum will be more scalable, more people will use it, which can raise the price of ETH to new heights.
The price of Ethereum has corrected significantly over the past few years. Of late, Ethereum has experienced positive price movement, which shows its potential to be a great long-term investment.
For example, in January 2023, the price of the token soared to new heights at 4,800 U.S. dollars. The price saw such dramatic movement because an ETH investor purchased a digital art piece for over 38,000 ETH – or 69.3 million U.S. dollars.
It also saw a huge jump in price because of the so-called “Berlin update”, which rolled out on April 21, with the aim to reduce ETH gas fees. And the release of the new smart contract protocol known as Uniswap V3 in January 2023 also played a part in the rise of ETH.
The rise in popularity of NFTs and the Metaverse has played a role in increasing the value of many cryptocurrencies, including Ethereum. That’s because users can purchase NFTs with cryptocurrencies on different blockchains. This capability adds yet another use case for the ETH token, which drives up its value.
For example, Ethereum based metaverse Decentraland had the second-largest cumulative NFT sales volume at $216,471,162. Therefore, the Ethereum blockchain is a popular place to purchase NFTs and experience the metaverse.
Ethereum is a host for innovation as fascinating new projects are being built on Ethereum, from microgrids to charging stations for electric vehicles.
You might also consider investing in Ethereum to diversify your current crypto portfolio. That’s because Ethereum’s technology and purpose are different from other cryptocurrencies like Bitcoin. It’s clear that Bitcoin is a good investment.
But you can further improve your portfolio by investing in Ethereum. Why? Because it’s intended to be a platform for smart contracts. With Ethereum, you can not only store, value, and purchase things, but you can also program smart contracts and tokenize assets.
If you’re an investor who doesn’t mind “playing the long game”, then Ethereum can be a great investment for you. Once it fully moves to proof-of-stake, Ethereum may eventually dominate DeFi.
If Ethereum can rise to the top of DeFi on a proof-of-work model that’s more costly and less scalable, then it would definitely seem highly likely that it will capture even more market share once the move to proof-of-stake is complete.
And even though the price of ETH has fallen 75% ($1,500) since it's all-time high of $4,800, it could rise back to its all-time high once the crypto economy gets back to normal. This means that if you took position today, you could see a 200% return on your investment.
Censorship is often an issue in today’s digital environment. Various social media platforms have the right to delete, modify, or hide content.
Because Ethereum is decentralized and isn’t limited by a regulatory body, the information stored on the blockchain can remain alive and uncensorable. So, keeping people more informed and giving them the ability to make more educated decisions is yet another use case Ethereum has to offer. This can drive up its value and price.
Will Ethereum (ETH) Reach $10,000 in 2 Years?Following the famous upgrade that took place with Ethereum, experts are anticipating an increase in value as soon as 2023.
Allnodes CEO and creator Konstantin Boyko-Romanovsky anticipates ETH to hit $5,000 following the update. According to Coinpedia, ETH will begin 2023 on a high note over $3,000 if the network experiences a reduction in congestion and gas prices, as well as more adoption following its huge upgrade. The experts and crypto predictions believe ETH may be down, but it will surely survive.
According to the analytical forecast by Anton Kharitonov, Ethereum price will be within $2924.76 - $3574.7 by the end of 2023. It will be possible to earn money throughout the year from volatility.
| Month | Minimum Price | Average Price | Maximum Price |
|---|---|---|---|
| August 2023 | $2406.66 | $2674.07 | $2941.48 |
| September 2023 | $2523.64 | $2804.05 | $3084.46 |
| October 2023 | $2657.35 | $2952.61 | $3247.87 |
| November 2023 | $2740.91 | $3045.46 | $3350.01 |
| December 2023 | $2924.76 | $3249.73 | $3574.7 |
| Month | Minimum Price | Average Price | Maximum Price |
|---|---|---|---|
| January 2025 | $4178.23 | $4642.48 | $5106.73 |
| February 2025 | $4328.64 | $4809.6 | $5290.56 |
| March 2025 | $4462.34 | $4958.16 | $5453.98 |
| April 2025 | $4596.05 | $5106.72 | $5617.39 |
| May 2025 | $4763.18 | $5292.42 | $5821.66 |
| June 2025 | $4846.74 | $5385.27 | $5923.8 |
| July 2025 | $4980.45 | $5533.83 | $6087.21 |
| August 2025 | $5013.87 | $5570.97 | $6128.07 |
| September 2025 | $5097.44 | $5663.82 | $6230.2 |
| October 2025 | $5231.14 | $5812.38 | $6393.62 |
| November 2025 | $5364.85 | $5960.94 | $6557.03 |
| December 2025 | $5515.26 | $6128.07 | $6740.88 |
From all that we have discussed, this is not something that can be answered by a simple yes or no.
Technical corrections can be deep, the market may be readjusted to something we have never seen before. So, Ethereum investments are risky now. We should all understand that crypto is volatile even on good days, so short-term investments will be close to unpredictable. Be mindful of all of Ethereum's unique drawbacks and pros before making any decision.
On the other hand, in some cases, it’s an opportunity of a lifetime to buy coins cheaply for the long term. As we have seen with the crypto cycles, if everything goes as planned, the next time prices will be this low is in 10-12 years. It is therefore still a good idea to buy Ethereum for long-term investments. But just for extra precaution, keep it as a part of a diverse portfolio.
So which are the best coins to weather the storm with?
First of all, regardless of the crypto cycle or economic status of the world, you must always be careful when buying crypto. Conduct in-depth analyses of your current portfolio, how much you are willing to risk, and even national policy.
Once all that is settled, do your best to stick to “stable” coins. These will have the lowest risk of crashing drastically. Here is a list of the best coins to consider right now:
| Current Price | Market Cap | 1 m return | 1 y return | ||
|---|---|---|---|---|---|
1889.11$ |
228.4B |
3.95% |
79.88% |
||
29993.89$ |
587.0B |
11.71% |
50.06% |
||
17.23$ |
6.8B |
-11.78% |
-49.50% |
||
0.29$ |
10.3B |
-22.21% |
-37.70% |
||
0.00$ |
0.0B |
NaN% |
NaN% |
||
12.90$ |
0.0B |
-12.13% |
-19.83% |
||
0.50$ |
0.0B |
8.25% |
55.10% |
||
0.67$ |
6.3B |
-23.34% |
46.88% |
||
0.00$ |
0.0B |
NaN% |
NaN% |
||
0.00$ |
0.0B |
NaN% |
NaN% |
The following tools and instruments were used for making the prediction:
Basic instruments of technical analysis. The forecast relies on basic technical indicators. The analysis was performed mostly on medium and long-term time frames for more accurate results.
Statistical tools that allow experts to evaluate the probability of an event that may influence the prices of cryptocurrencies.
Individual features of a cryptocurrency startup and its competitiveness: number of tokens in free circulation, restriction of emission, potential usefulness of the startup for the society, roadmap and development plans of the startup, potential vulnerability of the startup’s blockchain, examples of hacks, failures in the entire history of cryptocurrency existence, capitalization dynamics compared to key competitors, share of major coin holders and other subjective factors.
Note:
This price prediction is based on current information and historical data. Strong fundamental factors capable of radically changing the overall situation in the cryptocurrency markets, impacting the prices of certain cryptocurrencies and subsequently changing the price trend, may appear in the future. The price predictions are updated regularly based on the latest data.
This article is created for informational purposes only and does not constitute investment advice. Be aware of the high volatility of cryptocurrencies and consider these risks when making investment decisions.
If the launch continues successfully, the impact will be positive, as the throughput capacity of the network will increase, the transactions costs will decrease and the emission will be reduced. However, you need to keep in mind that the speculative factors have the same strong of an impact on the Ethereum price.
Yes, the general crypto market will indeed recover. However, how long the crash will last, will vary depending on who you ask, what theory you propose, and what article you read. How low the prices will drop is also up for debate. Once everything calms down, just as it did after the worst of the pandemic, we will probably be returning to a new normal.
According to crypto cycles, we should expect this season to last at most 4 years. It could also last a few more months. Some experts believe we have 2 more years to go, during which the situation will get worse. There are no certain predictions but a maximum of 2-4 years is an expert guess.
Yes, right now when prices are low is a good time to buy the dip. However, this strategy is only good for long-term investors with diverse portfolios, and who are ready to comfortably lose what they invest.
Ivan is a financial expert and analyst specializing in Forex, crypto, and stock trading. He prefers conservative trading strategies with low and medium risks, as well as medium-term and long-term investments. He has been working with financial markets for 8 years. Ivan prepares text materials for novice traders. He specializes in reviews and assessment of brokers, analyzing their reliability, trading conditions, and features.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.
