WHAT Downtrend? Ethereum Price will reach $5K and THIS is Why
Ethereum was one of the big winners of the late March 2022 bull run. From a price of $2,600 per Ether in mid-March, the price surged to over $3,400 in the last two weeks of March and even surpassed $3,500 in early April. Can an Ethereum price 5K mark be reached in the next 3 months?
Is Ethereum Good in 2022?
In the first two months of 2022, the ether course went downhill sharply. Like almost all other cryptocurrencies, Ethereum fell in 2022 due to a very bad market situation. In January, the ether price fell from $3,800 to as low as $2,200.
February brought little improvement. Ethereum was able to recover somewhat in the middle of the month and went above $3,000 again. But at the turn of the month of February / March, the Ethereum price fell again more sharply. However, mid to late March saw a sharp rise to above $3,400.
Why did the Ethereum price recently rise again?
The rise of Ethereum can easily be explained by the overall performance of the crypto market. Its driving force is clearly Bitcoin, which recently broke through its long-standing upper resistance at $45,000 and rose to $47,000. This also caused stronger increases for the altcoins.
The crypto market has been heavily impacted negatively by a number of external events over the past few months. This included the war in Ukraine and its impact on international financial markets. The announcements by the central banks about an increase in key interest rates also caused weaker prices in recent months.
These influences now seem to be weakening. Despite these problems, the crypto market is growing still. Especially areas like NFTs and DeFi will continue to expand in 2022. Ethereum is the most important blockchain in these two growth markets.
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Will Ethereum Price go up in Q2 2022?
At the moment, the macro direction for the crypto market is not yet clear. The course developments at the turn of the year in no way correspond to the previously known classic trends. A massive bull run that brought Bitcoin over $100,000 and Ethereum over $10,000 has so far failed to materialize.
On the other hand, the current correction is not a classic bear market either. When the bear markets began in 2014 and 2018, we saw Bitcoin price falls of around 80% from their respective all-time highs. In the past few months, the Bitcoin price has only fallen by about 50%. Therefore, the big rally for both Bitcoin and Ethereum could still follow in 2022.
What Factors Could Make Ethereum Bullish in 2022?
There are a few factors that could have a positive impact on Ethereum's price:
- An easing of the geopolitical situation (war, energy crisis, etc.) could have a positive effect on the financial markets. This would also affect cryptocurrencies and increase Ethereum.
- A successful launch of Ethereum 2.0 , which should be completed in the next few weeks, should drive the Ethereum price up again massively.
- A continuous hype about NFTs and a further growing DeFi area should also increase the price of Ethereum in the next 3 months.
Will Ethereum Price 5K Happen in Q2?
A price of $5,000 would mean a new all-time high for Ethereum and would be an important milestone towards the $10,000 that investors have been hoping for almost 2 years now. The current increase lays a good foundation. Should the above factors come together in the next 3 months, Ethereum could surge to $5,000.
Looking at figure 2 below, we can see how prices are starting to pick up, eyeing their previous ATH and even the $5,000 price mark.
You can also purchase ether on the crypto exchanges and .
Read more: https://cryptoticker.io/en/ethereum-price-5k-2022-and-this-is-why/
Text source: CryptoTicker
