The notable FTX crash had a major adverse effect on the cryptocurrency market. Many cryptocurrency analysts believe that it will take months, if not years until we recover. In the previous week, the cryptocurrency market lost an average of 20%. Ethereum, on the other hand, fell approximately 25%, from $1,600 to $1,200. Ethereum, on the other hand, can rise again if certain market dynamics take place. Will Ethereum soon reach $2,000? Let us explore this in this Ethereum price prediction article.
Why did the price of Ethereum recently drop like a rock?
Following the FTX crash, the whole market crashed. When a crypto-related company goes bust, its users and customers regularly lose a lot of money. As a result, they lose trust in the crypto market and liquidate any leftover crypto wallets. The very same thing happens across the sector, where massive liquidation starts, causing a trickle-down effect.
Ethereum prices established an uptrend, enabling them to rebound from a drop of $1,000 to a maximum of $1,600. When the FTX crash happened, ETH dropped to a low of $1,100. At the time of writing this, the ETH price is trading at $1,222.12. So, it seems that the price is gradually increasing.
Following a recent recovery, the Ethereum price is now fluctuating between $1,200 and $1,250. Over several days now, the price has been steady in this range. It is hard to predict how the price will progress in the coming weeks resulting up to the end of the year.
Why might 2023 be a good year for Ethereum?
2023 could be a better year for Ethereum and the cryptocurrency market in general. Because we have seen significantly more favorable progress in the second year of the bear market than in the first year of the bear market in the previous cycle of cryptocurrencies.
As a result, cryptocurrencies encountered a 70-90 percent decline in 2018. Even so, the price went up again in 2019. In 2023, the price of Bitcoin accelerated from $3,500 to $10,500. During the same time frame, the price of Ethereum rose from $84 to $318. This substantial rise could actually occur again in 2023.
Ethereum Price Prediction: Can Ethereum Break the $2,000 Mark in 2023?
In 2019, the second year of the previous bear market, the price of Ethereum rose three to four times. This rise may be replicated in 2023. Price has functioned very correspondingly in this bear market as it did in the earlier bear markets in 2018 and 2019.
If the 3x to 4x increase keeps going, Ethereum’s price could climb above $2,000 or even $3000. In most cases, cryptocurrency gains reduce in terms of percentage in subsequent cycles. Even so, another bullish stage in 2023 could move the Ethereum price back above $3,000 again.
Cryptos are unquestionably here to stay. Once the crypto market settles, Ethereum should be able to restore to $2,000 without too much trouble. Undoubtedly, the $2,000 price level is less than half of Ethereum’s all-time high of around $4,900. However, it is highly improbable that this objective will be fulfilled before 2023. Two things must occur for price levels to fully heal:
- The cryptocurrency market should begin its bull run.
- There will be no further negative impacts on the cryptocurrency market overall.
The preceding points are obvious aspects of rising prices, but they are crucial for Ethereum’s price restoration. Ethereum may strive to strengthen below $2,000 till after 2023, with a -45% achievement ending 2022.
How high can the Ethereum price rise by the end of 2022?
If the bull market begins, the Ethereum price could rise by 15 to 30 percent by the end of 2022. Even so, it seems that even more stabilization with relevant short-term, minor rises is more highly probable. A price drop within the next month appears improbable. As a result, we believe the Ethereum price can reach $1,500. Ethereum is expected to trade between $1,400 and $1800 by the end of the year.
Ethereum Price Prediction: Is it worthwhile to invest in Ethereum right now?
In the second half of 2022, Ethereum was quite impactful. The Ethereum Merge led to a significant price hike for the Ethereum course, especially a few weeks before. The price was elevated from $1,000 to $2,000. Despite subsequent setbacks, Ethereum managed to recover extremely well from the year’s extremely bearish first half. The year 2023 appears to be very favorable.
According to our Ethereum forecast, the price of the Ether token could increase until the end of 2022. But even so, Ethereum is very well placed after the merge, especially in the medium to long term, so a long-term investment must be beneficial. However, making assumptions about short-term rises may be beneficial as well.