After a disastrous start to the year, Ethereum seems to be recovering some of the lost ground and has gained 50% in a few weeks.
Ethereum begins to recover some of the lost value
While in the first six months of the year, Ethereum was one of the worst performing assets in the crypto-currencies, it has shown significant signs of recovery in recent weeks, with a recovery of almost 50% from the lows, which had taken it below $1,000.
Within weeks, the Ethereum price climbed back above the all-important $1,500 level and is still showing signs that could point to further upside through the end of the year. See the article: Brian Armstrong sheds light on US cryptocurrency regulation and its future?. Many analysts predict that ETH could reach and exceed $1,700 by the end of the year, then rise to $4,000 by the end of next year and exceed $14,000 in 2025 .
After hitting $4,100 on Dec. 27, Ethereum began a slow descent earlier this year, which continued more steeply after Terra collapsed in May.
This increase has several reasons, the first of which, according to most experts and analysts, is related to the release of the Merge update, scheduled for September 19. This new update should introduce the new consensus method based on the Proof of Stake, which is much more durable and economical than the current Proof of Work.
The second factor that could certainly have influenced the incredible recovery of Ethereum is the fact that having suffered very strong declines, as soon as a market recovery began, as has been the case in recent weeks, he was able to enjoy it more. The fact that it hit $1,000 obviously triggered a series of auto orders that quickly dragged the stock higher, setting off a chain reaction that has supported the stock for the past few weeks.
The reasons for the recovery and the short-term outlook
On the other hand, you should know that at the beginning of January 2021, the price of Ethereum was hovering around 1,000 dollars, before experiencing this sensational surge which led the title to touch its historical record at more $4,800 in November. See also: What is the next cryptocurrency that will explode in 2022? Top 8 crypto nuggets with high potential.
However, according to some analysts, Ethereum has been drawing a clear bearish reversal signal in the past few days, and therefore some are predicting that the crypto might even pull back quite sharply in the coming days.
Nevertheless, Ethereum has always been considered by many experts as the cryptocurrency with the greatest medium and long-term growth potential, precisely because of its characteristics and applications that make it more attractive in the eyes of investors, even compared to Bitcoin itself, whose mass adoption still seems a long way off.
And that’s also why excessive cryptocurrency declines like the past few months have led many investors, in the climate of absolute uncertainty, to buy Ethereum, which could actually outperform the market if it turns. straighten.
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Passionate about crypto-currency and DeFI, Thomas relays the international news on this subject!