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Why is the Price of Ethereum So Volatile?

While you’ve probably already heard about the upcoming upgrade to ETH 2.0 and the scalability of the Ethereum platform, you may be wondering why the price of Ethereum is so volatile. Fortunately, there are several factors that can affect the price of Ethereum. First, supply and demand play a role in the price. As more people buy Ethereum, the supply of it decreases. If you want to know how to forecast the price of Ethereum, check out the data and methodology page.

Ethereum has an immense amount of potential, but many investors still wonder whether it can go as high as Bitcoin. The answer to this question is a bit tricky, but this Ethereum price prediction guide can help you get a good idea of how far the cryptocurrency might go in the future. After all, the project was created by Vitalik Buterin, a young programmer who became interested in financial technology after the popularity of Bitcoin. He envisioned ways to improve the currency.

A majority of cryptocurrency experts are optimistic about Ethereum’s future. They cite the technology’s functionality and its upcoming updates as two of the most important reasons for the current price of Ethereum. These attributes are not present in any other crypto project. Ethereum is expected to remain relevant even if regulation imposes strict rules. The price of Ethereum is likely to fluctuate, but its potential is high. The upcoming change in the Proof of Stake model is just one factor that could affect the price of Ethereum.

The success of Ethereum has led many to call it the second-best cryptocurrency in market cap. It’s now listed on the majority of global exchanges and empowers decentralized trading platforms. With its name and nodal position in the crypto space, Ethereum is instantly recognizable by new investors. The first version of Ethereum was Frontier and generated the Genesis block, which sparked the Ethereum crowd sale. Its pre-mined coins, 72 million, are currently sitting on the market, representing 62% of the entire circulating supply.

The first cryptocurrency to launch a public blockchain, Ethereum gained traction in October 2015. Its price continued to range until the end of November 2020, but the price soared in December. The cryptocurrency then topped out at $4,300 in May 2021. After hitting its ATH, Ethereum declined 60%, but surged again to a new ATH of $4,840 in November 2021. During its bull run, the price of Ethereum increased nearly four-fold. However, if the price of Ethereum dries up again, it could come back to the $1,750 level again.

In the near term, Ethereum’s price could fall to $1,400. After reaching its ATH of $6,500 in December 2015, the crypto market will make lower lows. These retracements are not pumped attempts. Rather, they’re part of the bear market. If the price of Ethereum doesn’t recover to the $1,400 region in March 2025, it will likely fall to $1,400, or even lower.

The Price of Ethereum

The price of Ethereum is volatile, but it has reached a high of $1365 in 2018. As the Ethereum network fills up, the price will likely decrease slightly. Supply and demand will also affect the price. If there are more buyers than sellers, the price will go up. Conversely, if there are more sellers, the price will go down. Regardless of the price, there are several things to keep in mind when buying or selling Ethereum.

The price of Ethereum may be approaching its ATH, but it will have to bottom out first before it will enter a bear market. At this point, the price of Ethereum would play out similarly to its previous bear market. A year from now, the current consolidation range would become the bottom of the next bear market. This is because Ethereum must bottom out after the bull cycle reaches its peak. In the meantime, it may be unable to do so until it hits $14,000 per ETH.

World events can also affect the price of Ethereum. The COVID-19 pandemic closed borders around the world and affected the entire global economy. The cryptocurrency suffered a decline as a result, but it may regain its lost ground and reach $2,480 by the end of 2022. Furthermore, if there are no new updates, the price may fall to its bottom level of $1,750. In January 2016, the price of ETH increased steadily and hit a high of $15 in March. Afterward, it dropped two times, to a low of $8. After that, it fluctuated between $10 and $14 for months. However, a rally occurred at the end of 2018 and Ethereum is now trading at $15.

As for the future, most experts are bullish on the price of Ethereum in the short term. In November 2018, ETH reached a high of $4,400 and crashed by 60% to under $2,000 within a matter of days. This correction is similar to the first selloff following the bull market breakout in 2017. Ethereum then formed an ascending triangle, sending the price on its final leg up. Whether it will rise or fall is unclear, but this bear market was the most drastic in the history of crypto trading.

Despite its volatility, the price of Ethereum has reached a record high in the next few years. Experts have predicted that the price of Ethereum could reach more than $4,000. These predictions are based on the current prices of other cryptocurrencies and will increase over time. They believe that this technology is a game changer for the crypto market. So, what are investors hoping for? With this new technology, many investors are betting on the long-term growth of the Ethereum network.

Unlike Bitcoin, Ethereum has no hard cap on the number of coins it can create. Its limit is set by its users through mining, a process that involves the use of computing power. This makes Ethereum an extremely popular digital asset. However, it has not been without its critics. Despite its popularity, there are many reasons why the price of Ethereum fluctuates. These factors include the demand for the currency and the supply of the Ethereum network.

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