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Ethereum is currently facing a massive setback after its down-trending market value.
The last few months have been a rollercoaster ride for the crypto market. After a staggering growth in the year 2021, global crypto investors expected that cryptocurrencies will continue with their spectacular price rally. But instead, major cryptocurrencies including Bitcoin fell drastically leaving investors in a fragile position. After China’s continuous crackdown on the crypto space, Ethereum made a strong comeback as the crypto soared to US$4,000, making investors and analysts anticipate that it will cross the US$5,000 resistance by the end of 2021. But the conditions of the crypto market made it impossible for investors to look on the positive side of Ethereum. Nevertheless, as it is very common knowledge, Ethereum is still the second-largest cryptocurrency in the world and holds a considerable influence over the market. According to predictions by crypto experts, despite its deteriorating volatility, the ETH token will still manage to grow by almost 300% by the end of 2022.
Over the past couple of years, the ETH token has managed to grow immensely in value. In May 2021, ETH broke past all its past records to set an all-time high that soared past the US$4,000 resistance. In fact, in the last four to five years, the cryptocurrency monster has generated staggering returns of almost 300,000% to its investors. But after the crypto market entered the crypto market phase at the end of 2021, Ether investors lost all hopes after bearing major financial losses. Besides this, since Ethereum and Bitcoin move together in the market, BTC’s recent downtrend is also adversely affecting ETH’s market dominance. According to reports by Cryptopotato, after ETH’s bearish trends pushed the crypto’s prices more than 10% in the past couple of days, the weekend has been comparatively far more stable.
Will ETH ever regain its market dominance?
Currently, the price of Ethereum is extremely volatile which builds anticipation for its massive software upgrade. According to Coinmarketcap, the price of Ethereum is currently trending at US$2,428.71, at the time of writing this article. In its current condition, crypto has already lost much of its investor and market support. Its selling pressure has degraded incredibly, making it even more difficult for the crypto to soar again. So, it’s quite difficult to actually affirm that Ether will actually reach the US$5,000 mark by the end of 2022.
Last year, around August 2021, Ethereum activated its much-controversial London hard fork, due to which the prices went up and touched record highs within a matter of 24 hours. A big part of the enthusiasm, among the crypto community, was the fact that it held indications for a sooner Ethereum upgrade and also demonstrated possibilities to soon become the largest cryptocurrency in the world, overtaking Bitcoin! Even though the developers introduce upgrades on the network almost all the time, the London hard fork was important since it consisted of Ethereum improvement proposals, also abbreviated as EIPs. But the delay in its actual upgrade ‘Merge’ is something that is anticipated to make Ether lose its market prominence quite soon.
But the delay has come off as an advantage for the miners. The Ethereum miners who leverage advanced computers like repurposed graphic cards with application-specific integrated chips to secure the network and get subsidies from the ETH blockchain bet that the delay will give them more time to generate profits for themselves for their mining operations. In fact, as Bitcoin mining difficulty increases, more and more miners are moving towards Ethereum mining. This will eventually increase the market value of Ethereum, or that’s what experts are predicting it to be.
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