- The crash in cryptocurrency prices has sent the price of altcoin giant, Ethereum, below $2000 from a record $4,382 earlier this year.
- Recent events suggest that Ethereum is heading for another uphill run to climb over the $2000 mark.
- In another development, Ethereum gas fees crash to a yearly low due to the general drop in the market with fees now as low as $0.12.
- Will the price get as high as $4,000 again this year? Expert analysis differs.
The crash in the prices of cryptocurrencies in recent weeks has affected the market in “hard to recover from” ways. Bitcoin took much of the heat as it fell below $30000 this month and is heading for the worst quarter since 2018 having lost over 46% of its value.
The leading altcoin, Ethereum, has also been on the receiving end of the market downturn as the once surging altcoin (which was flying high above $4000) is struggling to maintain $2000. The recent downturn in the market is linked to the shutdown of mining and related activities in Chinese cities due to environmental concerns.
Ethereum to Maintain $2,000 Again
Ethereum seems to be gaining ground again after a sharp decline. Bulls struggled to maintain its price at $1700 against the Dollar.
It has surpassed the $1850 and $1900 resistance levels and could well blossom above $2000. Institutional investors have played a huge role in the recent rise of Ethereum by pushing Ethereum options to their clients.
Going above $2000, the next resistance level will be $2100 but with the recent uphill movement, it looks to beat it in coming weeks. If Ethereum falls back below $2000 for a long time, it may be headed for another sharp decline.
Ethereum Gas Fees Drop to Yearly Low
The sharp decline of crypto prices has affected many areas of the market, even going as far as affecting graphic card prices of ASUS.
The decline has led to a sharp drop in gas fees on the Ethereum Network. Gas fees are now as low as $0.12 which many describe as being cost-effective once again. The booming Ethereum network had fees spiking up due to the backlog of transactions waiting to be executed.
Gas fees began to surge in May but have now hit a yearly low due to the recent price correction. The decline in activities across decentralized exchanges like Uniswap, NFT marketplaces have led to a fall in gas fees.
On the Flipside
- It may take a long time for Ethereum to go as high as it was in May due to the continued mining crackdown.
- The Ethereum blockchain, which has over 3000 dApps, has lots of scalability issues and continued competition from Cardano and Solana’s blockchain will prevent its growth.
Will Ethereum Hit $4000 Again This Year?
The prices of cryptocurrencies had a massive rally earlier this year which saw the market capitalization hit $2.5 trillion.
Bitcoin and Ethereum rose to all-time highs of over $64000 and $4000 respectively. But the crackdown in crypto mining activities in China has sent prices down. The recent price of ETH above $2000 has let bulls hoping for a new price surge back to its former glory.
This may be a very difficult run as mining restrictions are not slowing down in China, coupled with competition it faces from Solana and Cardano. However, the launch of ETH 2.0 may be a game-changer as bulls hope for a price surge.