This work examined the major cause of the current downward trend for Ethereum and possible target for Ethereum in this in the future. This will guide investors who wish to buy Ethereum today.
What is Ethereum?
Ethereum is the second most valuable Cryptocurrency after Bitcoin. Though not as popular as Bitcoin. However, many investors today would prefer it to Bitcoin based on the fact that it permits users to create a more secure digital technology including nfts, Dapps, Tokens, etc. Ethereum uses the Proof-of-stake mechanism which allows users to stake coins on the Blockchain.
Ethereum prices pushed on a downward trend amidst the FTX fallout
Ethereum Prices have been on a strong downward trend since November 2022. The bears had continuously dragged the price down, after it lost its major support at $1680. The panic and tensions caused by the FTX exchange crash had all the more caused investors to sell off their holdings. This crashed Ethereum prices dragging the price down to a new low at $1072 in November 2022. The bulls have been pushing to defend this strong support level and to prevent the price from going below the 1K level. Can the bulls succeed in pushing the price up again or will the current downward trend continue? This has been the major question troubling investors today, especially those who will want to catch the bottom for Ethereum prices. We have considered this important question in the next paragraph below.
Will the downward trend for Ethereum continue?
Ethereum just like every other cryptocurrency including Bitcoin is currently on a downward trend caused by the large withdrawal of capitals from the crypto market by investors after the crash of the second largest crypto exchange – FTX. A large number of investors using this exchange up to 3 Million users have been unable to access their funds to date. The market is currently absorbing the shock from this fallout and this has deterred new investors from coming into the market immediately.
Most coins including Ethereum stand the chance of losing their current support level should the market fail to attract new investors ahead of the next FOMC meeting coming up in December.
The price of Ethereum is currently ranging above its strong support at $1072. A break below this level could trigger more downside to retest the previous low at $890. However, the next major support for Ethereum is seen at $750.
What does the Future hold for Ethereum prices amidst the FTX fallout?
Ethereum prices are currently seeking to find new buyers again. With the increased number of transactions carried out daily on the Ethereum blockchain after it migrated to the Proof-of-stake mechanism, the future remains so bright for Ethereum to turn bullish again. Investors look up to this coin as capable of revisiting its previous all-time high in 2023.
Is Ethereum a good investment package?
Ethereum has maintained fair price stability unlike every other cryptocurrency today. Many investors have placed this coin on their watchlist after it migrated to the Proof-of-stake mechanism which is designed to reduce the cost of carrying out transactions on its blockchain and to increase its scalability too.
However, one major reason why investors have often been skeptical about their investments in Ethereum is that the present Ethereum we know today is a fork of the previous Ethereum now Ethereum Classic (ETC) which was created after the blockchain suffered a serious attack in 2016 which resulted to the theft of about 3.5 Million Ethereum. The community after a 97% support vote count decided to reverse the theft and create the new Ethereum we have today.