The past 2 days were harsh on the cryptocurrency market. Most cryptos lost on average more than 6%, with none being able to withstand this price drop. Although it seems that there are no fundamental reasons for this drop, some investors are eyeing key areas to stock up on their favorite coins. Ethereum is one of those tokens that despite their price adjustment, are still good to buy. Will Ethereum rebound soon? Let’s analyze in this Ethereum price prediction.
What is Ethereum Crypto?
Ethereum is a decentralized blockchain platform that creates a peer-to-peer network for safely executing and validating smart contract application code. Participants can do business with one another using smart contracts without the need for a reliable central authority. Participants have complete ownership and visibility over transaction data since transaction records are immutable, verifiable, and securely disseminated across the network. Ethereum accounts that users have created both send and receive transactions. As a cost of executing transactions on the network, a sender must sign transactions and use Ether, Ethereum’s native coin.
Why is Ethereum Good?
Ethereum provides the basis for decentralized applications or dApps. These decentralized applications offer the advantages of the blockchain in different areas in the digital space. The basis for this are intelligent contracts, the smart contracts that use the Ethereum blockchain.
The best-known group of decentralized applications is probably DeFi. These are decentralized financial services that have grown in popularity in recent years. Furthermore, Ethereum is the basis of most non-fungible tokens (NFTs). NFTs are unique digital objects that cannot be duplicated and therefore can become extremely valuable.
Ethereum DOWN after Hitting 2K
Ethereum prices started a nice uptrend from the bottom price of $1,000. From there, ETH prices climbed all the way to reach the psychological price of $2,000. However, prices could not breach this price area and directly retraced lower, proving that the 2K is not a strong resistance. Not only did prices retrace, but they also breached the uptrend line lower, reaching the support price of $1,640. That’s mostly due to the entire crypto market crashing, forcing ETH to breach its uptrend line lower. In figure 1 below, we can see how prices retraced following the exact important areas delimited in a previous article.
Ethereum Price Prediction – Will Ethereum rebound higher?
A lot can still happen before the highly anticipated merge. The 100% price increase in 1 month of ETH was about to adjust one way or another. This time, it happened after hitting the critical price of 2K and when the market as a whole adjusted.
Now that we reached the important area of $1,640, we expect prices to slightly increase back towards $1,700, then back towards $1,800 if the crypto market does not continue to crash as a whole. However, any strong breach of the $1,600 price would lead ETH to crash towards the $1,500 then $1,400 price areas.
