The crypto market is still consolidating after the crypto crash. In the last couple of days, many day traders took advantage of this consolidation and bought cryptos in their respective support areas. For Ethereum, traders worry that prices risk crashing and slipping below the current support area. Will Ethereum crash down or will Ethereum rebound higher in the coming days? Let’s analyze in this Ethereum price prediction article.
What is Ethereum Crypto?
Ethereum is a blockchain network that was founded in 2015. It has since grown to become the second most important blockchain. Ethereum was the first network to develop smart contracts. Thus, ETH could be the basis of decentralized applications (dApps). In fact, this blockchain is a leader in the non-fungible tokens (NFTs) arena and decentralized finance (DeFi) services. For years, ETH has been #2 in market capitalization behind Bitcoin. Ether is Ethereum’s network native token.
Does Ethereum have a future?
In recent months, there has been much speculation as to whether Ethereum has a future as a blockchain. This was mainly due to the fact that the blockchain, with its high gas fees and sometimes lower transaction speeds, has many disadvantages compared to other modern blockchains.
New blockchains such as Cardano, Solana, and Avalanche have advantages over the Ethereum blockchain, especially in terms of efficiency and transaction speed. This is mainly due to the fact that the blockchain relied on the proof-of-work consensus mechanism in the past. Now the blockchain is moving to a more efficient proof-of-stake consensus mechanism .
Ethereum Price is RISKY! What’s happening?
Recently, Ethereum prices broke the psychological price of $2,000 and headed towards the last strong support of $1,750. This price is very bullish, as many traders and investors bought Ethereum around that price area previously. In figure 1 below, we can see how prices rebounded back higher when they reached this price area.
Ethereum Price Prediction – Will Ether Crash to $1,000?
If Ethereum prices fail to rebound higher and break the $1,750 price mark, ETH is expected to continue crashing lower. Prices are expected to reach the next support area of $1,400, where we might see yet another consolidation with another rebound potential. However, ETH reaching $1,000 in the short-term is quite unlikely, as this would mean another 50% crash in prices. This would mean that the crypto market is severely damaged with no real technical advancement in the community.