On Saturday, the price of Ethereum fell by nearly 8%, marking a new 15-month low. The steep drop below $1,600 comes just days after Ethereum completed a test merge on its Ropsten network, a key step toward completing its major software update later this summer.
Because of a general market retreat from risky assets in May, the prices of ether and bitcoin have been unusually volatile in recent weeks. Stock markets and cryptocurrency markets both fell sharply on Friday after a key inflation report failed expectations and indicated higher-than-expected price increases in everyday items.
In 2022, Ethereum has also lagged bitcoin, owing to rising expectations for the network’s transition from proof-of-work to proof-of-stake, according to experts. Bitcoin has lost around 36% year to date, according to NextAdvisor data, while ether has lost more than 51%.
Investors and engineers have called the upgrade “the Merge,” and it will change how Ethereum transactions are ordered, making it more efficient and sustainable for mass adoption. Until then, experts will be watching how investors and companies developing on the Ethereum platform react to the changes.
The crypto market, according to experts, is seeing heightened volatility as a result of war, growing inflation, and changing US monetary policy. According to experts, other factors contributing to the current condition of crypto pricing include the crypto market following the stock market, greater popular usage, and recent price slumps.
More crypto laws, as well as the prospect of creating a government-issued digital currency, have sparked government officials’ interest. Bitcoin’s price has recently followed a similar decreasing pattern.
As a result of all of this, Ethereum has had a rocky start to the year, falling below $2,200 in January. The price of Ethereum has ranged between $1,600 and USD 2,000 so far this week.
Ethereum has traded in a range of $2,100 to $4,000 in the days following hitting a high of $4,100 on December 27
Despite a shaky start to 2022, many analysts remain hopeful, predicting that the price of Ethereum would reach and beyond $12,000 this year.
Despite its current fall, the price of Ethereum in 2021 was still quite high. When it topped $4,850 on Nov. 10, Ethereum set a new all-time high, which it held until the end of the month before reverting. Despite the late slump, Ethereum ended the year far ahead of where it began: the price of Ethereum in January 2021 was just over $1,000.
Following a strong November, bitcoin, like Ethereum, has slowed in the recent month; bitcoin reached a new all-time high of $68,000 on November 10th. Bitcoin and Ethereum prices will almost probably fluctuate in the future, and experts’ advice for investors remains the same.
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