Ethereum is one of the largest cryptocurrencies in operation today. Considered by many to be the second crypto after Bitcoin, it is always mentioned whenever there is a conversation about the state of the blockchain market.
Like all cryptocurrencies around the world, Ethereum has also been affected by the crisis that has engulfed the market since the beginning of the year. ETH, which is the native asset, reached its tipping point the lowest level is $885 in June 2022.
However, it has more than doubled in value since then. Today, many analysts are predicting a decisive rise in their price towards the $2,500 in August. Analysis based on many interesting points.
It’s hard to talk about Ethereum today without commenting The Merger. This is essentially a blockchain update that has been long awaited and requested by investors. The people responsible for the project made the announcement a few weeks ago and it should be done next September.
The main focus of The Merge update is to bring some tools from new technologies to Ethereum. Through this update, the cryptocurrency will finally be able to transition from the Proof of Work (PoW) system to the system Proof of Stake (PoS).
A major step forward that will allow Ethereum to benefit from a much-needed market boom. ecological plan and at the scalable level of the blockchain. After news that the update was coming soon, in July the price of the cryptocurrency was raised over 40%.
The launch date for The Merge is September 19 unless changed. An increase is a very good sign since its value was already constantly increasing in the previous months.
Currently the second largest cryptocurrency in the world still hovering around $1,900 and when these lines were written it is just $1989.14.
An upward movement in value
One of the reasons why Ethereum is enjoying a very good forecast today is because it has crossed a decisive step in the market. In fact, during its recent surge in value, the cryptocurrency touched a key support and resistance zone between $1,625 and $1,975.
This area is therefore the same support for ETH which will allow him to have a strong price base to continue the advance towards and above $2,000. According to the experts, Ethereum should aim to increase above $2,340. Only in this way will he be able to face the next resistance line located at around $2,500.
Rapid Evolution of Cryptocurrency
Although it is true that Ethereum has seen a fairly large drop recently, the crypto ended 2021 well in a pretty strong position. In fact, on November 10, 2021, the cryptocurrency set a new record in its history by exceed $4,850. It held a value in December before falling back to $4,100 towards the end of the month.
So, after this record, Ethereum fell very quickly and ended up oscillating between $2,100 and $4,000 over the following days. However, it is a situation that does little to make experts despair as many of them claim that this slow start in 2022 will not affect ETH for long.
By the way, Ethereum is not not the only cryptocurrency affected about the downturn in 2022. Bitcoin also fell significantly after its strong November when it reached a new all-time high by breaking above $68,000 on November 10.
It is quite clear that volatility is one of the biggest characteristics of the cryptocurrency market. Faced with these increasingly common situations, the expert advice for investors is the same. In addition, various criteria have a negative impact on the market in 2022 and this one begins to rise slowly.
What should investors do?
The attitude to be adopted in the face of crises in the cryptocurrency market is similar to the strategies proposed for any long-term investment: investors should ignore the ups and downs of the market, don’t give in to the pressure. Although Ethereum has experienced quite a decline, it has reached a milestone that will allow it to regain its previous highs.
In addition, some potential investors have already shown interest when The Merge was announced. It thus acts as the main catalyst to push the price above $2,500. Note, however, that the price of ETH may undergo strong corrections after upgrading with PoS in September.
Apart from Ethereum, this also affects the market for many other cryptos like Ethereum killers such as Polygon, Solana, but also Ethereum Classic.