Ether Price: Will Ethereum (ETH) Go Back Up?

This week has seen significant volatility in the Ethereum price (ETH), the second-largest cryptocurrency in the world by market value.  For the first time in the previous week, the decline caused the coin’s price to drop below $2,300, and it has since been trending down. 

Even though the overall crypto market is beginning to recover a little, it is still unclear what caused the collapse. Given that investors are closely monitoring economic indicators, there are several potential explanations for this decline. Let’s dive deep into the possible causes of the latest sell-off in the cryptocurrency market and explore how Ethereum’s price can make a recovery. 

Crypto Market Fall: An Overview 

For the majority of cryptocurrencies, 2024 got off to a good start. Most cryptocurrency tokens started recording from December 2023 and continued their price rally in the first month of this year. Nonetheless, in comparison to their all-time highs, cryptocurrency prices are still trading at bargain.

Moreover, the first half of 2023 has seen a wild ride in the price of cryptocurrencies. However, the last part of the latter half of the 2023 showed a promising signs for an upcoming bull market in 2024. But the question, will cryptocurrencies soar to new heights and fully overcome their losses in 2024?, remains on the back of the mind for all crypto investors.

Why is the Ethereum Price Falling?

Before going to the questions raised above, the majority of crypto enthusiasts want to know the reason behind the fall in Ethereum’s price. This question becomes the talk of the town. Moving forward to the exact reason, several crypto-specific as well as other factors led to the decline in Ethereum’s price. 

The entire crypto market is in red as of January 2024. Contrary to what investors believed, the Bitcoin price dropped by 20% after Bitcoin ETF approval. The market price trend movements of Bitcoin always have a direct impact on the price movements of altcoins, including Ethereum.

Adding to the ongoing bear price trends in the market, Celsius moved massive ETH holdings to exchanges, further causing the Ethereum price to drop. Around $35 million worth of ETH was moved from Celsius staking wallets to crypto exchange platforms like Coinbase and FalconX. This is also one of the major reasons behind the ongoing price drop of Ethereum.

Will Ethereum Price Make A Recovery? 

“Will Ethereum recover?” is a question that is currently making waves. There are numerous expert views present on the topic. But no one has the exact idea about the same. However, it depends on several factors. 

The precise course of Ethereum’s recovery is still difficult to predict, though, since different projections point to both possible ups and downs in the near future. The comeback of Ethereum is dependent on a number of factors, including general economic conditions, technological developments, and market patterns. After the fall in the price of Ethereum, a lot of analysts are still positive about the cryptocurrencies long-term prospects.

What Factors Can Drive Ethereum’s Price Up?

As we all know, Ethereum is a utility token. So, Ethereum’s price is affected by a mix of general and crypto-specific factors in addition to the price of Bitcoin and other macroeconomic variables.

However, the price of Ethereum is largely determined by supply and demand. Since ETH is now a deflationary utility token, its price may rise in the coming months due to growing scarcity and rising demand.

Ether Price Prediction: Will Ethereum Reach $10,000?

Ethereum is well-known in the cryptocurrency world and is one of the top platforms for smart contracts and decentralized apps. Investors are curious as to whether Ethereum can ever hit the incredible $10,000 price threshold. 

Therefore, although it is appealing to think that Ethereum might hit $10,000 in 2024, a realistic study indicates that this is a very unlikely possibility. The necessary price increase, the market capitalization at the moment, and the aftermath of the previous bear market provide formidable obstacles for Ethereum to clear in a short amount of time. Investors should use caution when making price projections and take into account the market’s inherent volatility and unpredictability. 

If we look at the price of Ethereum over the previous five years, it has gone through significant fluctuations. The ups and downs include the record bull run of 2017 and the bear market that followed in 2018. By going through the data, you can find out that the cryptocurrency has the potential to appreciate in value significantly, as evidenced by its recent surge in 2021. However, there is always a chance that Ethereum will hit $10,000 at some point in the future, and it is very difficult to believe that this will happen within the next six months or in 2024.

Conclusion

The Ethereum bull run clearly shows that the price of ETH is maintaining above-significant support levels and breaking through important resistance zones. However, how the market responds to these technical indications will determine the course of future price movements. Will Ethereum recover and reach $10,000? might have a positive response if it manages to breach the resistance encompassed by the YTD high. Investors must, however, keep a careful eye on these levels because they are a guide, not a magic bullet.