The crypto market has been experiencing a lot of turbulence lately. With the ups and downs that the world is facing currently, the market is witnessing its share of problems. However, many crypto investors are skeptical about this phase. The dilemma of whether to invest or not is pretty common among enthusiasts looking to put their money into the market.
Ethereum, the second-most well-known cryptocurrency and the most well-known altcoin, has also lost quite a bit of its price in the cryptocurrency market. However, experts are very optimistic about the future of this altcoin. This article will answer the question of will Ethereum rise again.
What are the Changes Happening Right Now?
Before going in with the investments, let’s look into the takes of the experts on the different matters of the cryptocurrency market.
War, Inflation, and Downturn
Oleg Giberstein, CEO of Coinsrule, in conversation with Forbes, said that the market of cryptocurrencies is not the only market that is facing harsh conditions today. “everything is down, and over the next 6-12 months, the economic outlook is bad. Central Banks are between a rock and a hard place concerning slow economic growth and high inflation. So, investors are escaping ‘risk-on’ assets like crypto and tech stocks.”
Further, the downturn of the market is also a point of the question. Giberstein further believes that the market might witness this turbulence and low prices for up to 2 years. The reason for so is the current economic and political conditions around the world. With war and inflation creeping in, it is becoming hard for the general people to keep their money invested in cryptocurrencies. As a result, the valuation and the prices are dropping.
The tension regarding regulations with the US government has made many investors doubtful about the investments. The interest rates are causing a drop in the valuation of Ethereum and other cryptocurrencies in general. Thus, it is creating agitation among crypto enthusiasts as well.
The trends of the market are also on the downside. Though in July, the market is showing signs of minor recovery, it is still too early to predict the short-term movement of the market. On the other hand, the crypto market will gain its ground in the long term. The valuation will increase, and the returns will be higher.
Mike McGlone, the Business Analyst of Bloomberg, predicts that the ETH can end this year at a $4,000-$4,500 valuation. However, it is essential to note that multiple factors might influence the valuation of the altcoin. Experts suggest that this dip can be advantageous for investors in specific ways.
However, there needs to be proper planning, effective strategizing, and risk management while putting money on the dip. The volatility of the market always keeps investors on their toes. Thus, it is crucial to understand the market rather than fall for emotional arbitrage.
The Bright Side of ETH
While many conditions in the market scale down the hopes of the investors, looking at the bright side will help you understand the long-run scenario of the altcoin. Though this coin has high volatility in the crypto market, ETH still has an incredible 90% hold over the NFT Market. Thus, it makes cryptocurrency one of the most important ones for enthusiasts to look into. 2022 will be an exciting year for ETH. Henri Arslanian says that this year will be “a kind of a make-or-break year” for Ethereum.
In addition, ETH has the largest team of developers. A more significant number of developers mean that the organization can experiment with technology. Most expert investors look out for crypto organizations with more developers. This is out of context, but Solana is second to ETH with 1000 developers and is gaining ground in the market.
ETH is indeed an exciting coin to consider. The coin will do wonders in Web 3.0, creating tremendous decentralization support for the users. That makes Ethereum a thing of the future. However, one must take precautions while putting their money into this cryptocurrency.
Will Ethereum Rise Again?
One of the most controversial questions today about the cryptocurrency of Ethereum is whether it will rise to its peak valuation. The market of ETH was bearish due to many reasons. Terra’s ecosystem crash created many shockwaves, and ETH felt it right to its core. It became one of the many reasons for the crypto crash that pushed down the prices way further. Soon after the collapse came another market crash that dropped the prices of ETH to touch $880.36 on 18 June.
However, users have started putting their money back into the market, and ETH is one of the coins that have a lot of contributors. The users and+of the coin add to the valuation. Therefore, it is safe to say that the currency can see an excellent bullish trend in the market. Nonetheless, it will indeed take time for the value of ETH to get to its full potential. WalletInvestor suggests that Ether is an “awesome long-term investment.”
What is more interesting to note are the applications that the blockchain-based software network has.
It is working tremendously in many sectors involving gaming, music, entertainment, and DeFi. Therefore, there is no doubt that it is one of the most popular cryptocurrencies in the world right now. Many users report Bitcoin is a bit overrated as compared to ETH. You will find that a cryptocurrency exchange software development company will look at ETH with far more respect due to its real-life applications.
What do the Price Predictions Say About ETH?
Experts have mixed reviews about the prices of ETH shortly. Most of these predictions are based on the current market scenario and future developments. ETH has been planning a few transitions and expansions. Thus, it will create a better effect on its users and add to its valuation. According to the current scenario, Ian Balina (founder of Teken Metrics) is forecasting a valuation of $8,000 by the end of 2022. That is a substantial bullish prediction for the altcoin right there.
On the other hand, one of the most significant limitations that ETH has to go through is still there. The problem of high gas prices. Though it is considered to be one of the leaders in the market of cryptos, the high gas prices can hamper the potential of the cryptocurrency. For example, Solana, which has transaction fees of $0.01, is much cheaper than ETH, with transaction fees of $1.01 per transaction. Therefore, it might become harsh for ETH if they do not make the ETH 2.0 upgrade successful.
If ETH 2.0 (Serenity) is successful, experts like Coinpedia suggest that ETH can easily land a valuation of $12,000+. Well, that indeed can be possible as Serenity is aimed to add speed, efficiency, and scalability to the existing network of ETH. Thus, the market value of the coin will see a massive boost with technological advancement. Though many experts still believe that the logical mark of ETH will rise above $2,000 by the end of 2022, the long-term predictions are much more bullish.
The price comparison portal Finder, on the other hand, suggests that ETH can see a valuation of $23,372 by 2030. Thus, the current panel of Finders is in favor of buying (43%) or holding (41%) the crypto shares of ETH, and a small number of them are in favor of selling(16%).
Currently, it cannot be denied that ETH is gaining good ground after the breakdown it had in between February to June. On 18 July, ETH closed the day at $1,578.72, which is a long way from 18 June’s closing price of $993.64. Thus, the market is indeed witnessing a gain in valuations.
Is It the Right Time to Buy?
The Time Money Mentor has some beautiful questions about whether you want to buy a cryptocurrency for yourself. They suggest you ask yourself questions about how the market works, the risks involved, evidence of market change, your interest, and much more. It is indeed essential for you to consider the questions before you go and start investing. It is so because the marketing is indeed volatile and speculative. It needs a very observative eye to understand what’s happening with the technology.
Thus, coming back to the question of whether this is the right time to buy ETH. Learning the graph of users, developers, developments, and tech advancements, the answer is pretty much yes, it will rise. Though the predictions are far-fetched ideas right now, one thing is for sure the market is slowly stabilizing once again. The regulations on crypto will be accepted by enthusiasts in one or the other way. Many investors and experts suggest that these regulations can become a building block for digital assets. It can also support consumer protections for fair trade and add to the security standards.
What to Watch Out For?
The concept of ‘buying the dip’ sounds very exciting and can result in high returns. Still, many new players have burned out their investments just by buying the dip. This ‘Ethereum Fall’ don’t be that person. You need to work towards wise investment to get maximum output.
- Invest that much that you can endure losing
In simpler words, but just enough that doesn’t compromise your needs and utilities. If you require your money for your everyday requirements, don’t put it in crypto. As you are already familiar with the volatility, invest enough that you can stomach losing. Being on the crypto market should never come at the price of your needs.
Don’t just get on with ETH. There are a vast number of cryptocurrencies out there. Diversify your portfolio by investing in various cryptocurrencies. It will help you to create a better opportunity for return and can even get you a jackpot. You can make clever use of the speculative market by purchasing different cryptocurrencies.
- Your Risk Management Strategy
Don’t dive into the market without creating a risk management strategy. Disciplining yourself to set out the limits and ensuring your entry and exit limits and trade amounts are a must. You need to know what you demand from the market and how to achieve it.
What is the Future Looking at Life?
With all the predictions, speculations, hate, and enthusiasm, the informative idea of cryptocurrencies is lost. The concept of the blockchain was to give more power to the general people. That is precisely what the new developments in the field of technology are based on. The upcoming Web3.0 has the principles intact and has proved to be one of the most fruitful and beneficial solutions of the present day.
Furthermore, it can be very beneficial for the crypto market as a whole. If Web 3.0 is successfully deployed and becomes widespread, it can indeed take over the fiat currency. However, the paradox of valuation needs to be put to rest. If the financial system of cryptocurrencies takes over the fiat currencies, how will the cryptos be valued? There needs to be a scale, and that is all the problem. However, interestingly there are other aspects to it as well. The ideas and concepts of security, privacy, and decentralization remain at the core.
ETH is the most well-known and accepted altcoin on the market and is indeed working towards creating a better ground for itself in the new age. They are evolving with time creating better opportunities for their users.
Will Ethereum rise again? It is a question that can only be based on an understanding of the market. However, it is also true that experts only have 10 years of data to predict the prices of the cryptocurrency market. It indeed is a bit low compared to other markets of the globe. Thus, investors need to keep a curious look at the news about the market. At the same time, they need to be witty about their investments.
In other words, practice a healthy form of investment or crypto trade to ensure the best returns on the investments. Moreover, it is essential to note that buying the dip is not always the right strategy for you to gain the maximum return on investments. Sometimes, you need to make decisions with the current market scenario and check the trends of the market critically to ensure that your hard-earned money is safe in the market. In this article, the various scenarios and the present conditions of the market are touched upon. Therefore, it will help you make a more precise decision.
Bonita has been working as an SEO expert in Appinop Technologies in digital marketing. She has done b.com with designing skills. With her creative skills, she also handles social media for Appinop Technologies. She loves to learn new things at her job.