Ethereum is struggling to gain back its lost market prominence, as its prices spike above US$1k

The year 2021 presented itself with excellent opportunities for the cryptocurrency market. Almost all major institutions, including nations, stepped in to adopt cryptocurrencies and reap the benefits that the market has to offer. Major cryptocurrencies like Bitcoin and Ethereum grew exponentially, triggering the growth of the thousands of other cryptocurrencies along with it. The two cryptocurrencies have been at war since their inception, but Ethereum has largely outperformed its rival peer, mainly due to the EIP-1559 update that minimized the inflation rate. According to reports, crypto has risen more than 400% in 2021, whereas, Bitcoin only soared around 70%. But Ether’s price trends have been demonstrating an extensively poor performance since the beginning of 2022. Its prices have dramatically declined, which has in turn adversely affected the values of other altcoins. Based on crypto analysis reports, the Ethereum price has dropped by more than 60% from its all-time highs. Nonetheless, as the bear market conditions remain to haunt investors, Ethereum strives to give a little ray of hope to its buyers and struggles to maintain the US$1,000 resistance.

Several crypto analysts and financial experts believe that the Ethereum price will decline further below and might touch down the US$900 resistance. For the time being, the psychological support zone lies around US$1,000. But the crypto is struggling to retain the US$1,500 resistance level to ensure that its prices do not experience another freefall. Initially, the Ethereum price started plummeting below US$2,000 amidst the accelerating market volatility, in which all cryptocurrencies started experiencing all-time lows. But fortunately, for the past couple of weeks, the Ethereum price is stuck around the US$1,000 resistance. Experts hope that the token’s prices do not plummet further below, otherwise, the market will probably experience the worst sell-off season in the history of the crypto market.


Will Ethereum successfully maintain the US$1k resistance?

The crypto market began to fall after the US inflation rate crossed the critical 6% level and this has mirrored in the Ethereum price quite evidently. Also, with the overall crypto market heading towards declining capitalization, transactions on the Ethereum blockchain are also declining at a rapid pace. Nevertheless, for the past couple of weeks, the ETH token has successfully maintained its US$1k mark and is, fortunately, working on raising the scales. There are also several technicalities that are affecting the crypto’s price.

Its developers are working on improving the network’s productivity to provide an immersive crypto trading experience. Contemplations about the impact of the ETH 2.0 upgrade on the Ether price are becoming quite popular in the investor community. The delay in the upgraded launch is also one of the primary reasons for the drop in the Ethereum price. Experts predict that Ethereum will slide down below US$1,000 resistance, if in case, Bitcoin does march towards the US$10k, which is much more likely at this point. Whereas, there are also several other analysts who believe that ETH might end the year 2022 with its price ranging from US$5,000 to US$7,000, despite all the market volatility.


Bottom Line

Presently, the decline in the Ethereum price has traders and investors of the global economic and financial markets quite concerned. ETH has been bullish for months now and its drastic decline in prices has got investors quite worried. As months go by, the crypto moves deeper into slumber. Bullish traders wish to see Ethereum holding its position above the US$1,500 resistance. But for the time being, we can only hope that Ether price does not fall below US$1,000. Only time will tell how the crypto will react after the ETH Merge upgrade is launched, but to sustain its position as the second-largest cryptocurrency in the market, the crypto has to demonstrate some signs to ensure that it still is a viable investment option.