The Ethereum price is now experiencing huge downtrends, which has investors concerned
That Ethereum will be in a slump in 2022. When Bitcoin achieved its peak value in 2021, the cryptocurrency reached new all-time highs. However, since the market crash in the fourth quarter of 2021, Ethereum has been plagued by extreme volatility difficulties. The ETH token has passed the US$4,000 barrier level, providing investors strong optimism for the token’s future possibilities. However, the Ethereum token is now struggling to break over the US$3,000 barrier. And, given that all cryptocurrencies are connected with one another, it should come as no surprise that ETH falls if BTC falls. The widespread consensus on Ethereum is that the crypto’s market cap will soon overtake Bitcoin, which is one of the numerous reasons why the Ethereum token has risen so dramatically in such a short period of time. However, ETH has its own set of advantages, and the network offers various advantages to both investors and developers. Basically, Ethereum is known to offer higher returns than Bitcoin, but with the delay in Ethereum’s upgrade, which is set to be released in the third quarter of 2022, analysts believe that the crypto will soon collapse and investors will suffer significant losses!
Ethereum is one of the market’s most well-known cryptocurrencies. Previously, crypto researchers estimated that ETH will increase by about 400% by the end of 2022. Despite the fact that the cryptocurrency has expanded tremendously since its inception, the Ethereum price has recently seen significant volatility. Unlike Bitcoin, Ether’s usefulness as a software network makes it a profitable investment alternative for building apps, new tools, and NFTs. There are various variables influencing Ether’s dropping market value, but the most notable one at the moment seems to be the delay in deploying the ETH 2.0 upgrade. Currently, the Ethereum merge is a critical component of the ETH 2.0 upgrade, which has been postponed until the later half of 2022. This has irritated investors, who have begun to believe that the update is simply one of countless bogus promises disseminated by Ether developers.
Why is the ETH 2.0 upgrade being postponed?
Ethereum 2.0 seeks to demonstrate a transition from the proof-of-work (PoW) consensus model to the proof-of-stake (PoS) consensus model, which is widely used to reduce the carbon footprint of cryptocurrencies. It will also allow Ethereum mining to cease, alleviating worries about the cryptocurrency’s energy use. The ‘Merge’ update will reorder transactions on Ethereum, making it more efficient and sustainable for wider use. However, analysts believe that until this occurs, investors will continue to look forward to it, and without any fruitful delivering, the crypto will soon begin to lose its investors.
Crypto specialists have also said that the market is displaying the extreme levels of volatility associated with war. Ethereum has been bouncing around a lot in the last several weeks. According to coinmarketcap, the Ethereum token is now worth $2,995.44 USD at the time of writing this article.
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Is this the time to sell Ethereum?
Ethereum has been quite volatile in recent days for a variety of reasons. In reality, even before the Russia-Ukraine conflict, the cryptocurrency gave its investors various reasons to liquidate their shares. However, since the crypto market is mostly dependent on investor speculation, it is impossible to examine and establish a specific explanation for Ethereum’s poor performance. Government authorities have shown an increasing interest in crypto regulation, as well as the creation of government-issued digital currencies. All of this has shook the crypto market to its core. However, selling ETH tokens may not be such a smart idea. Ethereum is the globe’s second-largest cryptocurrency, the ETH 2.0 upgrade is still on the way, and the crypto will undoubtedly overcome its negative position and conduct bullish price rallies in the market very soon. Despite its tenacity with ETH, investors should be wary of its volatility.