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Ethereum continues to struggle to find its resistance amid tumultuous times
Despite the recent fall in the value of cryptocurrencies, the cryptocurrency community continues to believe in the potential of Ethereum. Initially, Ethereum dropped about 20% within a period of seven days, falling near about US$2,000 from its all-time highs of about US$2,700. As Bitcoin fell, it brought down other major cryptocurrencies like Ethereum. Nevertheless, Ethereum whales and investors remain optimistic about its prospects as they await the launch of ETH 2.0, which is supposed to make the ETH network swifter and more efficient to use. The general discussion regarding Ethereum is that the crypto’s market cap should be closing in on Bitcoin soon enough, and it is one of the many reasons why the Ethereum token has been able to surge massively, within such a short period of time. But recently after Terra’s collapse in May 2022, the crypto market suffered, even more, tearing down the remaining hopes of the investors. Currently, within a period of one month, the Ethereum token has come down by almost 25% and its announcement of the new upgrade launch could not help the altcoin’s price.
The Ethereum merge was meant to address the energy-use issues and open new opportunities for higher transaction output, lower gas fees, and several other features. The developers are also supposed to work on some of the bugs in the PoS implementation which are supposed to be fixed within the upcoming months. Being one of the most popular cryptocurrencies in the market, ETH was expected to grow by almost 400%, by the end of 2022. But currently, according to coinmarketcap, at the time of writing this article, Ethereum is trending at around US$1,700. The crypto has stabilized at this point and is expected to collapse even further below US$1,600. This is one of the many reasons why investors are hesitant to trade in Ethereum. The fact that the crypto will trade below US$1,900 is making investors insecure since the crypto is expected to fall even further down below.
Will Ethereum’s Price Ever Recover?
Ethereum’s price has been hard hit by the regulatory uncertainties around the crypto market. The worldwide regulatory agencies have stressed the fact that this sector mostly highlights the opaque pricing strategies, illiquid market infrastructure, frauds, and risks of massive financial losses.
The delay in Ethereum’s upgrade is also not helping its price dynamics. Ethereum 2.0 aims to showcase a switch from the proof-of-work (PoW) to the proof-of-stake (PoS) consensus model which is quite popular for reducing the carbon footprint of cryptocurrencies. It will also enable Ethereum mining to come to an end, hence, reducing concerns about its energy consumption. The ‘Merge’ upgrade will redefine how transactions on Ethereum are ordered, making it more efficient and sustainable for more widespread adoption. But until this happens, experts are assuming the investors will continue to look forward to it and without any productive deliverance, the crypto will soon start to lose its value.
According to crypto reports and analysis, the entire dynamics of the supply and demand change once the merge occurs. The regular sell pressure on ETH will grow. The crypto might not be one of the top-performing assets right now but with this intense volatility, you never know how Ethereum investors might react to the new merge upgrade!