After recent price drops, crypto investors are questioning if Ethereum will recover from the current downturn. While this volatile asset may recover in the long run, it’s unclear how long it will take to do so. According to most analysts, the price of Ethereum could continue to decline, at least in the short term. Specifically, senior analyst Bill Noble of Token Metrics predicted that Bitcoin could drop to $20,000 by the end of the year. Veteran trader Peter Brandt warned that cryptocurrency assets may be a high risk to investors.
But is Ethereum still in its bullish phase? Some analysts are predicting that Ethereum will rise in the long term, despite the recent crash. The price of Ether may be building a base between $2,000 and $4,000, while some analysts believe that the cryptocurrency is in a long-term bull market. But, as the Federal Reserve steps in to curb inflation and rebalance its portfolio, ethereum’s bullishness could soon come to an end.
With high volatility, it’s hard to forecast where Ethereum will go in a few hours, let alone months. Even analysts and algorithmic forecasters had gotten it wrong in the past. Nevertheless, it’s a good idea to own a small percentage of this cryptocurrency, but don’t over-extend yourself. As long as you have a long-term strategy, Ethereum should recover from the current Crypto crash.
A key reason to stay invested in Ethereum is that it’s still one of the most innovative and stable blockchains available. This means that the Ethereum network could easily expand its capacity if needed. It has also been the platform of choice for ICOs. This enables developers and users to build new applications based on it. With the help of the Ethereum network, users of the cryptocurrency can use the same platform to make new products and services.
The price of Ethereum continued to fall on Wednesday, with the currency dropping by more than 20% on Tuesday. At the beginning of August, it was worth $231. By December, it had fallen to around $210, with a significant drop in the market. Ethereum has fallen 22% from its previous peak on January 24th. This has led to the delisting of two other popular cryptocurrencies, Bitcoin Cash and Bitcoin SV.
Bitcoin has fallen below $30,000 for the first time since July and is currently trying to climb back up above that level in the Tokyo session. Yuya Hasegawa, an incoming White House press secretary, says that “the daily movement of crypto is not the gauge of the economy.”