The Ethereum price is facing major downtrends currently, making investors worried
Ethereum has been on a downtrend in 2022. The crypto witness new all-time highs in 2021 when Bitcoin reached its peak value. But after the market meltdown in the Q4 of 2021, Ethereum has been facing severe volatility issues. The ETH token crossed the US$4,000 resistance successfully, giving investors high hopes for its future prospects. But now, the Ethereum token is having a hard time crossing the US$3,000 resistance. And since it is a well-known fact that all the cryptocurrencies are correlated with each other, it should come as no surprise that ETH goes down whenever BTC does. The general discussion regarding Ethereum is that the crypto’s market cap should be closing in on Bitcoin soon enough, and it is one of the many reasons why the Ethereum token has been able to surge massively, within such a short period of time. But ETH does have its own perks and the network provides several benefits to the investors and its developers. Basically, Ethereum Is known to yield more returns than Bitcoin, but right now, with the delay in Ethereum’s upgrade that is postponed to be launched in the Q3 of 2022, experts predict that the crypto will soon collapse and investors might suffer major losses!
Ethereum is one of the most well-known altcoins in the market. Earlier, crypto analysts predicted that ETH might grow by almost 400% by the end of 2022. Even though the crypto has grown massively since its launch, the Ethereum price has faced big swings lately. Unlike Bitcoin, Ether’s utility as a software network makes it a lucrative choice for investment to build applications, new tools, and NFTs. There are several factors that govern Ether’s tumbling market value, but currently, the most prominent factor seems like its delay in launching the ETH 2.0 upgrade. Currently, the Ethereum merge forms a key part of the ETH 2.0 upgrade which has been delayed until the last half of 2022. This has made investors quite impatient who have started believing that the upgrade is just part of the several false promises that the Ether developers are spreading.
Why is the ETH 2.0 upgrade delayed?
Ethereum 2.0 aims to showcase a switch from the proof-of-work (PoW) to the proof-of-stake (PoS) consensus model which is quite popular for reducing the carbon footprint of cryptocurrencies. It will also enable Ethereum mining to come to an end, hence, reducing concerns about its energy consumption. The ‘Merge’ upgrade will redefine how transactions on Ethereum are ordered, making it more efficient and sustainable for more widespread adoption. But until this happens, experts are assuming the investors will continue to look forward to it and without any productive deliverance, the crypto will soon start to lose its investors.
Crypto analysts have also said that the market is showingcasing the heights of volatility that comes with war. Ethereum bounced up and down quite frequently within the past few weeks. In fact, at the time of writing this article, the Ethereum token is standing at US$2,995.44, according to coinmarketcap.
Is it time to sell Ethereum right now?
There are several reasons why Ethereum has been so volatile, these past few days. In fact, even before the Russia-Ukraine war, the crypto has been giving several reasons to its investors to sell off their investments. But since the crypto market is mostly based on investor speculation, it is quite difficult to assess and pinpoint a particular reason for Ethereum’s bad performance. Government officials have shown an increased interest in crypto regulation and even the possibility of creating government-issued digital currencies. All this has shaken the very foundations of the crypto market. But selling ETH tokens might not be such a good idea. Ethereum is still the second-largest cryptocurrency in the market, the ETH 2.0 upgrade is still coming, and the crypto will definitely overcome its bearish state and run bullish price rallies in the market very soon. But investors should be careful about its volatility, inspite of its persistence with ETH.
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