At the time of writing, Ethereum is sitting at $1,313.36, a 4.80% increase in the last 24 hours. Despite a sharp increase in price today, the coin started trending downward again shortly after.
However, the price has continued to grow steadily since early November, and it appears that it will recover by the end of December.
Here’s why that’s the case.
In order to understand where Ethereum is headed, we need to take a closer look at its performance in 2022.
In contrast to its stellar performance in 2021, Ethereum has had a tough year in 2022. Last November 8th, Ethereum peaked at $4,811 on Coindesk, but it has trended downward since then for a variety of reasons. The cryptocurrency had dropped from $3,763 to $3,080 during January 2022 due to inflation fears and a broader move to sell off risky assets.
Ethereum’s price has been affected most recently by the implosion of FTX back in November, which rocked the crypto market in general. The price of Ethereum went from $1,627 to $1,098k in two days, but the coin is slowly recovering.
The price of Ethereum was already on the rise even before November had come to an end. The price rose from $1,221 on November 29th to $1,280 by December 1st, and although it has fluctuated between $1220 and $1230 over the month, it has still shown a growth trend that is much better than last month’s, and it is approaching its price before the FTX crash scared investors off.
Ethereum’s price changes between November and December. Chart by CoinDesk
Despite this, the price of the coin could decrease again depending on how the market reacts to the first hearing of the FTX case, as well as Sam Bankman-Fried’s testimony to congress on the 13th.
This coin’s price will also be affected by the outcome of the Federal Open Market Committee (FOMC) meeting on Wednesday 14th.
A lack of volatility has resulted in Ethereum trading in a narrow range, resulting in significant changes in its technical characteristics. In the past 24 hours, Ethereum has shown a bullish trend, but in the last four hours, it has exhibited a downward trend.
With any cryptocurrency, it’s hard to predict where Ethereum will be by the end of the month, let alone next year.
There is a possibility investors will pull back from the currency due to fears of a recession, and a high-profile lawsuit against the Securities and Exchange Commission might bolster or stifle the coin’s development.
The coin appears to be in a position to fall either way. Ethereum would most likely crash again if the lawsuit or the FOMC meeting result in bad news.
If not, the coin may continue its slow recovery into 2023. And yet, if the crypto industry doesn’t experience major positive shakeups, Ethereum won’t reach its early 2022 levels.
Ethereum Analysis Conclusion
It looks like Ethereum will start 2023 with a modest but consistent growth, not like it was in mid 2021. As a result of the May crypto sell off and the FTX collapse, the value of the coin dropped significantly, but it is expected to recover by January next year. During the remainder of 2023, Ethereum is expected to trend upward slowly, but it’s unlikely it’ll reach the heights of previous years.
How Many Ethereum Are Left?
As of today, Ethereum Supply stands at 120.52M, down from 120.52M yesterday and up from 117.85M one year ago. In comparison to a year ago, the change to the coin’s supply is 2.26%.
Which Is Better: Bitcoin or Ethereum?
Bitcoin and Ethereum have had a similar price trend in the last year, so in investment terms they have a similar projection. However, Ethereum has far more flexibility in terms of what can be done with the protocol.
A major difference between Ethereum and Bitcoin is that Ethereum can be programmed. The feature broadens Ethereum’s scope beyond just digital currencies. With it, Ethereum becomes a marketplace for games, apps, and financial services. This usability could see Ethereum surpassing Bitcoin in the future, though it’s still far from reaching that point.
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