The recent FTX crash had a massive negative impact on the crypto market. Many crypto analysts predict that it’ll take us months or even years to recover. The crypto market lost an average of 20% in the past week. Ethereum on the other hand lost around 25%, dropping from $1,600 to $1,200. Ethereum however can go back higher if certain market dynamics occur. Will Ethereum reach $2,000 soon? Let’s analyze in this Ethereum prediction article.
Why did Ethereum price crash recently?
The entire market crashed following the FTX crash. When a crypto-related company goes to bust, its users and consumers often lose a lot of money. This makes them lose faith in the crypto industry, liquidating any remaining crypto wallet. The same thing happens across the entire industry, where heavy liquidation starts to occur, creating a snowball effect.
Ethereum prices established an uptrend which allowed its prices to recover from a low of $1,000 to a high of $1,600. When the FTX crash happened, ETH crashed and reached a low of $1,100.
Ethereum Prediction: Will Ethereum reach $2,000 again?
It is certain that cryptos are here to stay. Ethereum recovering towards $2,000 shouldn’t be a problem once the crypto market settles. In fact, the $2,000 price mark is less than half of Ethereum’s all-time high price of around $4,900. However, it is highly unlikely that this target will be reached before 2023. For prices to recover, 2 things need to happen:
- The crypto market should go back on its Bullrun
- No further negative impacts on the crypto market in general
The above points represent obvious elements in price increases but are vital for Ethereum’s price recovery. Ethereum can continue to consolidate below $2,000 till after 2023, ending 2022 at best on a -45% performance.
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