The Ethereum price has seen little movement since the Ethereum merge. Basically, the direction for the ether token was down. In the last few days, the price has fallen back below the $1,200 mark. But how will things continue for Ethereum in 2023? Can Ethereum dip back below $1,000 in early 2023? In this article, we analyze Ethereum in the coming year 2023 and see in which direction the price can move.
How has the Ethereum price moved in the last few weeks?
The course of the ether token has been looking down in recent weeks. On September 15th, one of the most important events in the crypto market in recent years took place, the Ethereum Merge. The network was converted to Proof-of-Stake. In the weeks before, there were even sharp increases. Overall, the Ethereum price doubled from $1,000 to $2,000 by the end of the summer of 2022.
In the weeks leading up to the merger, the price had already fallen again. In the fourth quarter, the Ethereum price was also trending downward. The exception was the altcoin rally at the end of October, whose gains were also lost again in the FTX crash.
Recently, the Ethereum price was able to rise again to a value of over 1,300 dollars. But in the last few days, the price has fallen below $1,200. This makes the Ethereum forecast for the end of the year and for the beginning of 2023 rather negative.
What factors weigh on the Ethereum Price?
Overall, the crypto market is in a valley. Especially after the FTX crash, confidence in the market is not very high. Furthermore, interest rate increases by the American central bank, the FED, are weighing on cryptocurrencies.
While the Bitcoin price has already lost a lot in the last few weeks, Ethereum is not looking much better. In the last 7 days, the losses are much higher than Bitcoin. In some cases, the Altcoins are even more severely affected by the FTX crisis than Bitcoin. In the case of Ethereum, there is also the waning interest of investors after the successful but unspectacular merger.
What is the Ethereum Prediction for the beginning of 2023?
The Ethereum forecast for the beginning of the coming year 2023 does not look particularly rosy at the moment. A drop below $1,000 and with it the bottom of the bear market is still in the cards. Ethereum still outperformed Bitcoin in 2022. However, we are slowly seeing a trend reversal in Bitcoin dominance and the FTX effect now seems to be having a stronger impact on altcoins.
Ultimately, much depends on whether Bitcoin has already reached its bear market bottom in 2022. A number of factors speak in favor of this, such as the number of bitcoins that have brought profit to their owners. This indicates a possible bottom formation. It is difficult to say in our forecast whether the bottom for Ethereum has been reached.
Only ~50% of all 19M BTC in profit (blue). Historically this correlates with bear market bottoms. Time will tell. pic.twitter.com/QxtNWzsbp4
Will the Ethereum price fall below $1,000?
The $1,000 is a key level of support that has been held in this bear market so far. But at the moment the altcoins are showing great weakness, which greatly increases the risk of Ethereum dropping below this mark. If, for example, the Bitcoin price falls below $15,000 again, Ethereum is even more likely to drop below $1,000.
Ultimately, we have to wait until the end of the year. We may see a year-end rally that takes Bitcoin back above $18,000 and Ethereum above $1,300. However, if the price remains stable and experiences a slump in January 2023, Ethereum could fall massively again.
We, therefore, assume an Ethereum forecast for the first weeks of 2023 between $900 and $1,100.
Is it still worth investing in ETH?
The ether token remains a good investment despite the bear market. In our Bitcoin forecast for the time of $100,000, we wrote that it could be extremely undervalued. This could also apply to the Ether Token. In the course of 2023, we should also see stronger price increases for Ethereum again and our medium-term forecast is positive.
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