Ethereum had its best years in 2021. It broke its all-time high price by far to reach a market valuation of almost half a trillion US dollars. Today, after the recent market crash, Ether’s price sank from a high of USD 4,350 to reach a low of USD 1,750. Today, Ethereum remains a top contender in the smart contracts space. The only concerns that surround this project are the high gas fees. Since nothing much changed in Ethereum’s fundamentals, why Ether crash? Will Ether price go back up?
Ethereum Price Analysis – The story so far
The investors of Ethereum were all in shock. Their blockchain creator Vitalik was the catalyst that started the whole crypto crash. In fact, Ether was creating week after week new all-time high prices. Many projects using the Ethereum blockchain, or even the ones which revolved around it were striving. This current crash erased all gains and brought down the price back to where it was 1 month ago.
Ethereum was bound for a major change in June and still is. On the other hand, the creator of Ethereum Vitalik decided to dump a shitload of Dog Tokens, which started a negative sentiment in the crypto sphere. Ether’s price got affected heavily first from that dump (since most projects use the Ethereum blockchain), then another time got affected by the whole crypto market sentiment with Elon’s tweets.
This resulted in a heavy price decrease. In figure 1 we can clearly see how prices went off from their uptrend track after the Vitalik dump. But this dump reached the strong support of USD 1,900 and reached the other support price of USD 2,500. Today’s prices are around this latter area.
Ethereum Price Prediction – Will Ethereum go Back to its Uptrend?
As we stated before, it is very important to “zoom-out” in order to see the bigger picture. Being able to see the macro price-action is always very useful in estimating future trends. For Ether specifically, it is definitely the case. Zooming out like in the case of figure 2, we can see a clear uptrend still. The deviation from the average uptrend channel was bound to a correction back to it. This is exactly what happened to Ether, and we project bigger moves in the near future.
That said, Ether’s price should definitely reach the USD 3,000 mark before mid-June. This date also coincides with the EIP 1559 that will become applicable on Ethereum’s blockchain.
The Crypto Market as a Whole
In the past 24 hours, most cryptos were seen consolidating or even adjusting upward after the recent heavy crash. The top winners in the past day were mainly small cap coins such as HOLO, Ethereum Classic and SwissBorg. On the other hand, the biggest losers were Revain, Waves and Synthetix.
1- Bitcoin (BTC) : + 1.81 %
2- Ether (ETH) : + 6.22 %
3- Tether (USDT) : 0 %
4- Binance Coin (BNB): + 8.57 %
5- Cardano (ADA) : + 6.83 %
6- Dogecoin (DOGE): + 6.62 %
7- Ripple (XRP) : + 8.92 %
8- USD Coin (USDC) : 0 % (Stablecoin)
9- Polkadot (DOT) : – 0.03 %
10- Internet Computer (ICP) : – 1.87 %
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