During the current market correction, Ethereum had one of the worst drops, causing Ether to lose about a third of its value in a couple of days.
Ether is still struggling to recover after the most recent flash crash, even if the price of Bitcoin has returned most of its value since the top in March.
Is this how Ethereum will be remembered in 2024? Or is there a chance that, like Bitcoin, the price of Ethereum will rise before the year is out?
Ethereum price history
When Ethereum started off in August 2015, its price was less than $1 throughout the most of that year. In March of 2016, Ether was at $10. By the end of 2017, it had risen to $100 and was at $774. Before the 2018 cryptocurrency meltdown drove Ether’s value below $100, the cryptocurrency exceeded $1,000 in early 2018.
Ethereum had another upswing between 2019 and 2021, peaking at $4,815 in November of that year. Ether had a decline in early 2022 then a rise in 2023, reaching $2,500 by January.
Ethereum reached its high in March 2023 at $4,000 amid a massive bull run. However, corrections in April and June drove it down to $3,600 before a flash crash completely destroyed $1,000 of its worth.
Ether once more experienced a surge from 2019 to 2021, peaking at $4,815 on November 9, 2021.
In the first half of 2022, ether’s value decreased. In 2023, the ETH price was steadily rising all throughout the year, finishing at $2,500 price levels in the beginning of January.
In the midst of the Bitcoin ETF frenzy and this year’s largest cryptocurrency boom, Ethereum was one of the most prosperous digital currencies. At its highest point in March, the price of ETH was $4,000.
April saw a significant correction in the cryptocurrency market, followed by a somewhat smaller correction in June. As the Ethereum price stabilized at $3,600, a flash crash arrived, erasing $1,000 off its value.
Current situation
The largest drop in a year has occurred in the cryptocurrency market, with nearly $500 billion lost (14.5%).
On August 5, ETH dropped as much as 21% to reach a swing low of $2,112, but it then rose to its current price of $2,651. The supplier congestion zone at $2,800 provided strong resistance to Ether’s surge to $2,750 on August 12.
The cryptocurrency market has been trending upward over the past week. With Friday’s high of $63,000 for Bitcoin, the total value of the cryptocurrency market has increased by $2.1 trillion.
Despite all the trouble, Ethereum (ETH) whales have started a huge buying spree on Friday, which could potentially mean they are buying the dip in large transactions.
Gas fees
Network validators are yet another possible source of Ether’s problems.
Ethereum is having problems since network validators’ primary source of revenue, petrol fees, have drastically decreased. This autumn jeopardises the financial motivations of validators and raises the possibility of a network-wide exodus that might compromise its stability.
Although petrol prices often rise in times of great demand, the current decline is probably the result of decreased network utilisation, which raises questions about Ethereum’s long-term security and dependability.
Record ETF inflows
The Ethereum ETF products had positive inflows for three days in a row this past week, bringing in $10.8 million, $24.3 million, and $5.0 million, in that order.
But following a three-day run of record inflows, the ETH ETF had another net outflow. $39.2 million left the market on Friday, the highest withdrawal from Ethereum ETFs since August 2.
As of now, most people consider Ethereum ETFs to be underwhelming in terms of the price of ETH. Should inflows resume, the price of Ethereum may be about to reverse course.
Price prediction
Large Bitcoin cycles, which determine the overall trajectory of the crypto market, must be in line with a long-term crypto prediction.
Usually, halving occurrences characterise these cycles. The price of Ethereum follows the BTC price’s recovery following a correction that occurred around the halving.
In the past, halving occurrences have caused Bitcoin values to soar. Within six months following the initial halving in 2012, the price shot up from $12 to $126. In a similar vein, after the second halving of Bitcoin in 2016, the price shot up to $1,000 in just seven months from $654.
Following the third halving in 2020, the price increased from $8,570 to $18,040 within the same time frame.
Given that Bitcoin has room to rise to $70,000 and higher, it is reasonable to predict that the cryptocurrency may see another bull run before the year is over.
Ethereum is now trading for about $2,600. Ether may be facing a pivotal moment that may determine its course over the coming months.
Trader Peter Brandt predicts that Ethereum will soon see another slump.
According to Brandt, ETH’s price may drop to $1,625 once a five-month rectangle pattern is completed and a rising wedge formation appears on the intraday chart.
https://x.com/PeterLBrandt/status/1823728741983326300
Brandt acknowledges that market moves might be surprising, but he also issues a warning that these patterns might not always materialise as anticipated.
Should this forecast come to pass, Ethereum’s price would probably finish 2024 below $2,000, just like it did in 2022.
