- These Top Crypto OGs Love to Hang Out at Parties - September 16, 2022
- Crypto Twitter is Raging Bulls over Name-calling - September 15, 2022
- Stop Putting “Feminism” Labels on the Demand for Internet Privacy in Web3 verse - September 14, 2022
Ethereum might plummet further below, making investors extremely worried about their investments
Ethereum investors are in immense trouble as its prices continue to fall, along with the market value of Bitcoin. The ETH price grew considerably in 2021, with its value surging up to US$4,000. But after Bitcoin fell, it took down major cryptocurrencies it, like Ethereum. After ETH plummeted, its value fell below US$2,000, which triggered most investors into selling off their tokens. Unlike Bitcoin whales, who are loading up their crypto wallets with BTC tokens, ETH investors are busy hoarding their wallets with Shiba Inu coins. This discourages ETH investors who are ending up believing that SHIB has more potential than Ethereum to prosper in the coming months. Experts believe that the crypto might soon lose its US$1,000 support range and might decline to a three-figure price value. Currently, the ETH price is not revealing signs of a robust price rally, despite the fact that its developers are on the verge of launching the ETH 2.0 upgrade. Besides, the delay in the Ethereum Merge upgrade is also one of the major reasons that have triggered the massive sell-off of the ETH tokens.
Ethereum now holds a crucial position in the crypto market. Despite several economic and financial downturns, ETH continues to fight. But the way the market is moving, Ethereum might soon end up losing its US$1k resistance. Currently, Ethereum needs to hold above the US$1,100 resistance, and so it has for the past few days. But the constant declination in its price is a major indication of the fact Ethereum is set to plummet further down. Earlier, key indicators had analyzed that Ethereum needed to maintain its resistance up to US$1,500 to eventually trigger a massive price rally. This prediction came at a time when the Ether price was hovering over the US$1,200 mark. But the conditions of the crypto market have worsened since then. Ether is now hovering a little above the US$1,000 mark, but might soon dive below it.
Why is Ethereum still falling?
When the crypto market fell in late 2021, the crypto market suffered from one of the most dramatic sell-offs that it had experienced in years. While investors of the top cryptocurrencies were worried about generating profits, small crypto ecosystems grew wary about the survival of their tokens. To make things worse, investors were also worried about the existing macroeconomic conditions and the FED’s stringent regulations to restrain the effects of inflation. It is quite obvious for them to worry about the financial risks that the crypto market is currently posing since it might lead to the dramatic shutdown of crypto businesses and stop the source income of millions of crypto investors.
According to experts, most of Ethereum’s gains were actually the result of the anticipation around the Merge upgrade which is expected to take place in 2022 itself. However, investors, including ETH fanatics have gone kind of cold towards this news due to continuous delays in the launch. The Merge upgrade was supposed to create excitement and anticipation around the crypto, which should have eventually supported its price action in the market. Instead, analysts and experts anticipate and fear that its launch might become another failure like LUNA 2.0, not just because of its volatility and weak price slopes, but also because investors are slowly losing their appetite to stay in the crypto market. Most of them are fleeing before being exposed to greater risks of financial losses. Even institutional investors are limiting their exposure to the crypto market, especially from major cryptocurrencies like Ethereum and Bitcoin due to their extreme volatility.
Should you sell off your ETH investments?
According to recent predictions by analysts, Ethereum is at its most vulnerable position right now. The token did cross below the US$1k mark before and there are definite chances that it might do it again. But ETH is still one of the largest cryptocurrencies in the market and its market dominance is still intact. If investors wish to buy cryptocurrency, they should definitely consult with their financial advisors before treading into the volatile market. But if they do not wish to risk their funds, then following the trend might not be the right move.