What should we expect next for Ethereum?
Ethereum In Line to Surge after recent lows
Ethereum’s price rose more than 400% last year. ETH had an all time high price of $4,891 in November. Despite the rise in the last 12 months, 2022 has not been kind to the coin. In the last few days, Ethereum price has fallen remarkably. As it is with crypto during such low times, enthusiasts and fanatics usually insists, buying the dip. So, If you are considering purchase Ethereum, here are some factors to look at
Why did Ethereum fall?
The entire crypto market took a nose dive these past two months thanks to some economic factors. Firstly, the Federal Reserve is slowly reducing the stimulus measures it introduced at the peak of the pandemic. This has affected the crypto market as stringent monetary policies make volatile assets like crypto less appealing to the general public.
One of the facilitators for crypto growth has been regular cash injection in the US economy. Now, times are different. So expect a drop of crypto prices rather than an upward trend. With that said, Ethereum price is bound to recover, however it may take a while for the price to reach its all time high.
Ethereum’s Eth2 upgrade
Ethereum created an environment where developers could build applications and cryptocurrencies on the ecosystem thanks to the Ethereum smart contract functionality. It is this function that has played foundational roles in NFTs and DeFi.
Ethereum is going through a process, and as it stands there are some problems attributed to its success. The network. The gas fees are high, and the network is congested. To counter this issue, Ethereum is planning an Ethereum 2.0 launch. The new system will be sustainable, scalable, and cheaper. However, these new changes will take time. According to Ethereum, the final phase of the launch will come up in 2024.
However, analysts fear that the launch will come in very late, thus giving a chance to Ethereum’s competitors to outgrow it.
Performance of the cryptocurrency market
Performance of the entire market plays a key role on the performance of individual coins. It is important to note that the crypto industry makes substantial progress based on usage and real time adoption.
Metaverse will become even more popular, DeFi will have more adoption and the growth of Web 3 will affect the way we use the internet. Currently, there are several unknowns. Regulation is still a major issue in the horizon, and the price might drop until it goes up
What’s next for Ethereum?
Ethereum still has lots of influence and power in the crypto world. In the last 24 hours crypto has seen a 2% increase in price. While we can’t say this is an indicator that things have turned for the crypto, the private movement tells us that coin can go on a surging run at anything. Long term investors will continually look at Ethereum 2.0, as a huge turning point for the coin in the next few years.