The cryptocurrency community is sitting on the sidelines, worried about another crash in prices. If this happens, the odds of seeing new 4-year low prices are very high. Ethereum made 100% gains recently when prices jumped from $1,000 to $2,000. However, despite the success of the recent Ethereum merge, prices sank again and settled at the current price of $1,350. Is the enthusiasm towards crypto and blockchain dying? Will Ethereum crash to 0 $? In this article, we take a closer look at Ethereum’s technicals while analyzing its fundamentals.
Ethereum Merge was a Success Despite Naysayers
The Ethereum Merge was one of the biggest recent events in both Ethereum and the cryptocurrency sector generally. For the first time, a functioning blockchain network’s consensus method was changed. This is still the case; it is the most well-known and second-largest blockchain after Bitcoin.
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.
Ethereum Price Down after the Merge – What Happened?
The anticipation after the Ethereum Merge was supposed to push prices higher. However, after the merge occurred, most prices did not see any increase. Many speculators expected prices to rise, so they opened long positions in many cryptocurrencies. When the merge happened and prices did not rise, those same speculators closed their positions fearing that prices would tumble.
This specific action caused a snowball effect, as other traders and investors followed this liquidation, causing crypto prices to take a red hit. Ethereum specifically fell from a high of $1,800 and reach the support price area of $1,250. In a previous article, we did reveal that prices are going to reach this specific target.
Ethereum Price Prediction – Will Ethereum Crash to 0 $?
Why is Ethereum Important?
To answer this question, we need to understand what Ethereum fundamentally is.
Ethereum is a blockchain protocol that was the first to introduce smart contracts and has been around since 2015. Smart contract functions make it possible for decentralized applications to be developed on the blockchain. Ethereum quickly became one of the most popular cryptocurrencies on the market, as it enabled many industries and sectors within the crypto and blockchain market.
Will Ethereum crash to 0 $? Well, this means that there is no value in blockchain tech and smart contracts. In turn, this means that DeFi, NFTs and other blockchain companies would crumble down. The reality is far from this. With valuations in the billions, it is very unlikely that all those giants would tumble down. Moreover, this technology is still being explored by new emerging trends such as the Metaverse and Web3. All those mentioned technologies rely today mostly on the Ethereum blockchain. With the recent switch to PoS, transactions and processes on the Ethereum blockchain are set to become faster and more efficient.
Will Ethereum Crash to 0 $?
It is very unlikely that companies, businesses, and individuals all suddenly stop using Ethereum’s blockchain. This might happen if there happens to be a certain vulnerability in the network. Ethereum has been running since 2015, so the possibility of stopping tomorrow is negligent.
Also, if everyone at the same time decided to dump Ethereum, there would be other buyers facing those sellers. The formers would want to buy ETH cheaply, the fact which dumps the crash. Lastly, let’s look at figure 2 below. Back in 2018, hell broke loose when ETH prices crashed alongside the crypto market. Today, we are witnessing a similar price action. If this happens again, then prices are up for a big uptrend soon, similar to what happened back in 2020, when the big uptrend happened. The only worry would be a fundamental flaw in blockchain tech, which would drive all cryptos down the drain, including Ethereum.
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Source: https://cryptoticker.io/en/will-ethereum-crash-to-0-odds-are-no/