Ethereum Fails To Follow Bitcoin, At The Brink Of Downside Trend

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Ethereum Fails To Follow Bitcoin

Ethereum is having difficulty gaining momentum versus the US dollar above $1,800. The price of ETH is still strongly supported and is expected to rise quickly above $1,800 and $1,850.

Ethereum Underperforms, Struggles Below $1800 While Bitcoin is Up 

Although Ethereum fails beyond $1,800, it could not overcome the $1,840 resistance. In contrast, bitcoin surpassed the $50,000 ceiling and reached a new record high.

The price of ETH peaked around the $1,835 mark before beginning a new fall. It dropped below the 100 hourly simple moving average after breaking through the $1,800 support level. Also, the upward movement from the $1,665 swing low to the $1,835 high was broken below the 50% Fib retracement mark.

Around $1,730, the price is currently experiencing considerable purchasing activity. It is pretty close to the level of the upward movement from the $1,665 swing low to the $1,835 high, or the 61.8% Fib retracement. 

The price of ether is experiencing difficulties around $1,800. In the hourly chart of ETH/USD, a significant bearish trend line with resistance close to $1,800 is also developing. A considerable gain might begin with an apparent closing over the 100 hourly SMA and a subsequent move above the $1,800 mark. At the $1,840 mark, which is where the next significant resistance is located, the bulls are likely to try for a 5% advance shortly. 

Ethereum Price Prediction in 2023 and Beyond

The minimum price of Ethereum in 2023 will be $2,095.21, according to a technical analysis of projected price changes. The highest point that the price of ETH can go to is $2,469.43. The predicted average trading price is $2,157.61. 

Analyzing the present market and being aware of the price fluctuation of crypto assets is crucial when attempting to forecast the projected price of Ethereum in 2025. Our price estimate assumes that Ethereum (ETH) will be worth $7,500 in 2025 based on the predictions of market analysts and cryptocurrency specialists and elemental analyses. 

Factors Affecting Ethereum Price 

The following are some of the reasons for Ethereum struggling to make a comeback in 2023. 

#1. Pandemic crash

For various investor demographics, the bitcoin market offers a variety of alternative assets. For long-term holding, “legacy” cryptocurrencies like Bitcoin and Ethereum are a good fit. Compared to newer, smaller tokens, these coins are less dangerous.

It has been modest if we compare bitcoin and Ethereum’s volatility to that of newer cryptocurrencies since the COVID-19-caused market meltdown. The peak volatility of Bitcoin (BTC) and Ethereum (ETH) during the COVID-caused fall in early 2020. 

#2. Bitcoin Domination

The value of other cryptocurrencies is most heavily influenced by the value of Bitcoin. The value of other cryptocurrencies typically rises in direct proportion to changes in bitcoin’s price. If the price of bitcoin falls, this occurs in reverse.

The dominant coin on the market, in addition to changes in the price of bitcoin, influences the value of Ethereum; thus, Ethereum fails to follow bitcoin. In summary, when it comes to market capitalization and the number of active wallet addresses, Bitcoin has long held the top spot among cryptocurrencies. 

#3. Upgrades

The Ethereum blockchain has undergone a significant upgrade with Ethereum 2.0. Specifically, this improvement intends to help the network deal with congestion and boost transaction volume. Eth2 or Serenity are the other names for Ethereum 2.0. This update may encourage further financial institutions to use Ethereum. 

#4. NFT adoption

NFTs, or non-fungible tokens, are another factor driving up the price of ETH.

NFTs distinguishing characteristic is holding assets like art instead of money. In contrast, a non-fungible object such as a painting or a first-edition book has its unique worth. And the majority of NFTs are included on the Ethereum blockchain. 

#5. Defi

Many DeFi currencies are built on the Ethereum blockchain, its users are also responsible for paying Ethereum gas fees. Users must pay gas fees for the Ethereum blockchain to process and validate transactions. This computing energy is offset by gas fees.  

Should You make an Ethereum Investment? 

Yes, if it fits in with your investment goals. Be sure you’re comfortable accepting the risk involved with any crypto assets before investing in Ethereum, as it will fit well into many portfolios. To avoid the substantial risk of losing money quickly, do your research, as this is in no way financial advice. 

Conclusion

Although anything is imaginable, it is unlikely that Ethereum would ever surpass Bitcoin in price. Yet, because ETH’s supply is unrestricted, it has the potential to surpass BTC in terms of market cap. 

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