How Long Can Ethereum Continue Its Bearish Trend?

Nov. 10, 2022
How Long Can Ethereum Continue Its Bearish Trend?

Ethereum is the most popular altcoin and is much better than other cryptocurrencies for many investors and enthusiasts. The value of Ethereum’s native token, Ether (ETH), has increased since its 2015 inception. Ethereum surged from $0.311 when it launched in 2015 to its high of nearly $4,800 at the end of last year- with many changes along the way. But fell to a low of $1,136, its lowest since July last year.

In the middle of 2021, the price of Ethereum showed an upward trend. It was valued at $4,168 per unit in early May 2021. Unfortunately, ETH also did not remain positive during the current crypto crisis. The coin has dropped more than 27% this year, bringing its year-to-date losses by over 60%.

Ethereum Hosts DEXes

Ethereum prices have declined steeply over the past few months as the cryptocurrency has dropped. The collapse of the world’s third-largest cryptocurrency exchange, FTX, fueled the sell-off this week. Most cryptocurrencies fell as investors speculated that the industry might have a Lehman moment. However, a closer look at the situation indicates that Ethereum may actually benefit from this event.

We have noticed the crash of many Centralized Exchanges (CEX) in recent months, including Vauld, Celsius, Voyager Digital, and BlockFi. Most DeFi exchanges, such as SushiSwap, PancakeSwap and Uniswap, have done well during the same time. Ethereum is worth noting as it hosts some of the world’s largest DEXes, such as Curve, SushiSwap, Uniswap and dYdX.

Analysts believe that DEXes is superior to CEXes for several reasons. The Centralized Exchange (CEX) is an external corporation that acts as an exchange, storage facility, regulator and fee-charger. DEXs, on the other hand, utilize self-executing smart contracts to facilitate crypto asset trading. It uses a non-custodial framework where there are no intermediaries. The demand and frequency of transactions on DEX are much greater than on CEX. Because the network nodes do not require real-time updates. As a result, trading runs at a very fast pace.

Therefore, DEXs can continue to evolve in the long term. If that happens, Ethereum will benefit from being the biggest player in the market. Nevertheless, for the time being, the prices of Ethereum and other cryptocurrencies will continue to decline as concerns about the industry continue.

Factors Affecting Ethereum Price

1. NFTs

Non-fungible tokens are a part of the Ethereum blockchain and gained popularity in 2021. As most NFTs run on the Ethereum blockchain, the coin’s popularity has increased along with a new type of digital innovation.

2. Ethereum 2.0

In 2021, the Ethereum blockchain was upgraded to Ethereum 2.0, an update that attracted many crypto-asset activists. Ethereum 2.0 is an ongoing project, including the famous London HardFork that started in August last year. He designed a coin-burning process that is supposed to support the value of ETH coins by regulating their supply.

Also, on October 27, 2021, Ethereum launched the Altair upgrade to its new blockchain, Beacon Chain. This update tested the transition to a Proof-of-Stake (PoS) consensus mechanism. To complete the Ethereum 2.0 upgrade, the Ethereum main chain will join the Beacon Chain in 2022.

Ethereum Price Prediction

ETH’s price has been decreasing significantly for the past few months. After FTX’s crash, the sell-off accelerated this week. As it fell, it managed to move below the key support level at $1,236. The Relative Strength Index (RSI) moved below the oversold trend. However, the price of Ethereum will continue to fall as traders target the main support level at $1,000.

The price of Ethereum fell in 2022, but most experts predict that the price will rise again in the future:

  • According to an algorithm-based crypto-asset prediction website, Wallet Investors, the price of ETH will exceed $10,000 in November 2023 and may reach $16,391 by the end of 2025.
  • According to PricePrediction.net, ethereum is predicted to reach an average price of US$18,213 in 2025.
  • The price of ETH will be around $$ 7,569 in 2025 and will rise to $16,858 in 2028, according to DigitalCoin.

Syed Ali Haider

Researcher & Editor
Ali Haider is a Blockchain enthusiast and writer passionate about enhancing the acceptance, adoption, and integration of Blockchain technology worldwide. He has also been an advocate for digital freedom and cybersecurity for many years. He is busy analyzing the crypto market when he's not penning down his words.

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