The crypto winter has been harsh. Traders and investors continue to remain apprehensive. Probably, they do not even approach Bitcoin smart the well-known trading platform now! Several cryptocurrencies have lost their value. Others are no longer visible in the crypto arena for more info click here.
Ethereum’s Status
Surprisingly, Ethereum seems to have suffered the most! The last few weeks have been terrible for the ecosystem. It is as if there is hardly anyone to support it. Therefore, it is dependent upon HODLers.
HODL refers to an investing strategy. Here, individuals buy diverse cryptos. Then, they cling to them for long periods. They engage in trade, when the value increases. However, not all investors are so brave!
Ethereum has maintained space for decentralized finance. It also has a floor for major NFT initiatives. Regardless, its fall from grace, has impacted Ether’s trade. Even the Ethereum blockchain network is affected. Investors are worried about their investments. They wonder if its pricing will, once again, go beyond $4k?
Another aspect to consider is that 2022 has been witness to a series of cryptocurrency bankruptcies in the U.S. Is it heading for an economic recession? Therefore, Ether also feels pressurized.
Ethereum’s Pricing
July 2022 seems to be ‘recovery month’. The first week saw the Ether token falling within the $1,000 price range. Even then, experts believe that buying the dip is not advisable. Resistance exists beyond the price level of $1,200.
Currently, Ethereum is trading at USD 1,128.13. This is the conclusion of CoinMarketCap’s survey. Within a span of 24 hours, trading volumes have touched 15,698,647,141 U.S. dollars. In other words, the enhancement has been by 5.06%. It is all due to the actions of retail investors!
Is the recovery going to last?
Skeptics are doubtful! Investors’ behavior over the last six months, is the reason. The token’s price had remained stagnant. Therefore, many traders sold major chunks of their hoardings. They used crypto exchanges. Therefore, exchanges became overloaded. They were not able to get rid of these excesses.
At that time, the opening price of Ether was $1,151. The daily high was $1,174. The daily low was $1,142. Currently, Ether is priced at $1,128. Therefore, it looks as if Ether is making a comeback. Regardless, the price fall is quite significant. Ether is down by 68%.
Then again, on-chain data has something to say, too. Ether tokens are making their way into crypto exchanges rapidly. The idea is to ensure that they become prone to quick sell-offs.
As per Santiment, an on-chain analytics firm, the crypto winter reduced Ether’s pricing to almost $1,000. Therefore, the sales graph increased, on the varied exchanges.
Opinions of Experts
Many believe that the Ether token is a survivor. It had overcome adverse circumstances before. It would do so now! They are highly positive, because of the events surrounding global market capitalization! It has touched $910.9 billion. The increase from the previous figure, is 5.3%.
They believe that cryptocurrencies will recover their former glory. To illustrate, Ether’s pricing had gone beyond $4,800 towards the end of 2021. They feel that it will reach the same heights soon. It could be the year end of 2022. It may also confront strong resistance.
There are other reasons too, for their faith. True, Ether is susceptible to volatility. Nonetheless, one fact is highly noticeable. Ethereum is the promoter of decentralized finance (DeFi). Therefore, if DeFi is a success, Ethereum will also be a success.
Popularity of Ethereum
The fundamental factors’ prediction underlies Ethereum cryptocurrency. It refers to a simple equation. Here, money velocity is equivalent to the price quotient. Various denominations of fiat currencies are equivalent to all the measurements. The prediction is what makes Ethereum cryptocurrency so popular.
It also helps that several corporate businesses have been fans of Ether. It has led to the token gaining an enviable reputation. The Ethereum protocol has many real-world applications. Enterprise firms have shown interest in 11 major categories. The actions of major businesses influence the rest of the world.
The Ethereum network employs numerous coders. They work on upgrading the blockchain’s protocol. This should prove advantageous for commercial enterprises. They offer technical benefits.
Thus, Ether should regain its position soon. It is still extremely popular in the marketplace. Investors believe in its worth.