Ethereum has been on a downtrend ever since the crypto crash back in October 2021. Since then, prices have been on a continuous downtrend. When Ethereum moved from proof-of-work to proof-of-stake, everyone anticipated higher prices following this transition. However, Ethereum failed to increase in price. Is Ethereum Bullish still despite those negative events? The answer lies in the charts…let’s jump right into it in this Ethereum price prediction!
What is Ethereum (ETH)?
In 2015, the Ethereum mainnet launched. Vitalik Buterin, Gavin Wood, and Jeffrey Wilke were the main forerunners in the creation of Ethereum. ETH quickly became one of the top initiatives in the cryptocurrency industry as the market capitalization increased rapidly.
The proof-of-work consensus algorithm was the foundation of both Bitcoin and Ethereum at the outset. The latter however, switched to proof-of-stake recently. Ethereum has a Turing-complete virtual machine, in contrast to Bitcoin. Smart contracts, also known as decentralized programs, can be produced with this machine. On the blockchain, these programs are recorded alongside transactions. The features of these applications should then be accessible to users via transactions. With this, the program’s conditions can be altered in accordance with the logic and circumstances.
Was Ethereum Merge Successful?
One of the most significant recent developments in Ethereum and the cryptocurrency industry at large was the Ethereum Merge. The consensus algorithm of a running blockchain network was altered for the first time. This is still the case; it is the second-largest blockchain behind Bitcoin and the most well-known.
Different Ethereum network users and investors have various goals for the Ethereum Merge. A catastrophic failure that would significantly impact the Ethereum network was predicted by some pessimists. Others who invested predicted a price increase after the merger. Most attendees were probably certain that the Ethereum integration would go down without a hitch.
Why are Ethereum Prices Down?
The quick explanation is that the entire cryptocurrency market is declining. The majority of cryptocurrencies continue to follow the main market trend, particularly Bitcoin. The latter still controls a sizeable 40% of the bitcoin industry. The second obvious query is: Why is the cryptocurrency market down?
The market is currently down for a variety of reasons. Heck, even the stock market is in the red. The price of Facebook has decreased by more than 65% in the past year. Let’s take a look at the following macro factors, which collectively account for roughly 70% of Ethereum’s decline in the past year:
- The cryptocurrency market needed to recalibrate following a robust bullrun that lasted two years.
- Many nations are experiencing record-high inflation, which causes investors to steer clear of riskier assets.
- The conflict in Ukraine is raising anxiety in the EU region, which also makes people less willing to take risks, particularly when it comes to volatile and dangerous investment vehicles.
Is Ethereum BULLISH still?
Well, the short answer to this is NO. If we look at figure 1 below, we can see how prices are still in a descending triangle. We considered Ethereum bullish when prices jumped from $1,000 to $2,000 in anticipation of the merge. However, prices continued their downtrend momentum soon afterward. In order to consider Ethereum bullish, we need to see strong a buying power, lifting ETH prices higher than $1,600 as a first step, then higher than $1,800 as a second step.
After this, we will see Ethereum prices breach the psychological price of $2,000. This will consider Ethereum bullish again. However, for now, we can only assume that Ethereum prices are bearish.
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Source: https://cryptoticker.io/en/is-ethereum-still-bullish-the-answer-might-not-shock-you/