2023 is not considered a good year to invest in Ethereum because its price fell at the beginning of this year. But it is not easy to rely on the market volatility and estimate the things going on. The cost of any digital currency can flip due to changing market trends.
Now, you might think it is a sign of a storm that will come at the end of the year. Many people have an instinct that its price will shoot up and they will earn massive profits. But it is still confusing whether to invest or not. Many investors are worried about their investment plans and do not know whether to go ahead.
In the following write-up, we will discuss why the price of Ethereum has fallen so much. Everyone has noticed the massive fall, and investors want to know what they can do next to prevent losses. If you are also worried about your investments, then this write-up may help you.
What is the Reason for the Price Falling?
There can be many reasons behind the price falling of Ethereum. As an investor, you should know all the reasons before investing any funds in this asset. Let us consider some crucial reasons:
1. Its Uniqueness is Not Anymore
Before Ethereum came into existence, Bitcoin was ruling the market, and it had become a preferable asset for massive investments. But afterwards, Ethereum became popular after advancements in NFTs, smart contracts and other decentralized applications. But now, these advancements are happening for other digital currencies.
The popularity of being unique does not exist anymore in the crypto world. This asset is struggling to keep its investors with it. Now, many small investors are moving towards other platforms for profitable investments. The advancements are killing the uniqueness of Ethereum, making the price fall this year.
2. Bearing the Market Pressure
There is too much market pressure on Ethereum, just like Bitcoin. In two months, it was noticed that there was a severe rise in the price, and there was massive selling pressure. When the crypto market reaches the healing phase, the price goes high. In recent months, there has been a severe hit in the price, but later, the price comes into a state of resistance.
3. Slipping in the Available Time Frame
The high cost of transactions in almost every digital currency is a common problem. It is the same case with Ethereum. The network is upgraded to overcome all the challenges. But at the beginning of 2023, the price of this crypto asset fell. It delays the upgrade for a few months. It is also the main reason there is a substantial impact on the price of Ethereum.
What are the Current Market Trends for Ethereum?
Due to the fall in the price of Ethereum, many investors are planning to purchase this asset. They are making such an investment because they think that the price will shoot up after some time, like Bitcoin. But there is a risk too, whether the price will fall more than expected. If an investor invests money in it, the demand for Ethereum will increase, and it can also raise its price value.
But in the last few months, there can be many reasons for the price fall, like low crypto inclination, price fluctuations, etc. Due to several external factors, the value is also affected. The primary reason for the massive competition among different virtual currencies. With time, the number of investors is increasing for profitable investments every year. For more information, you can visit www.hometownstation.com.
Volatility in Ethereum
Like Bitcoin, Ethereum is also volatile, and so is its investment. An investor can experience rapid price fluctuation due to different factors. If you compare the price fall of 2023 to 2023, there is a 64% fall, which is too high. When it comes to determining price prediction, it is not easy and accurate. Compared to other digital currencies, it is risky to invest in them.
You must proceed only when you can afford to lose your money. Initially, it is better not to invest too much. It is a high-risk-taking crypto asset, and you must choose it wisely. If you are prepared to handle the volatile nature of this asset, then only you must proceed.
Merging Price Prediction
The idea of merging is quite old and has been working for several years. Getting an idea about Ethereum and how it will work for users is hard. The merging aims to convert this asset from work protocol to stake. With the help of miners, more blocks are added to the blockchain. The validators stake this asset for extending the blockchain.
There will be the merging of Mainnet with the Beacon chain. After the upgrade, it is expected that the investors will observe positive results, and they can also make profitable investments. Many people prefer Ethereum for making long-term investments. They can buy and sell this asset profitably when the right time comes.
Currently, the merger is halted, and other advancements are also on hold. It is complicated to predict the price value of this asset at the end of 2023. If you are planning to invest in it, ensure you go through the current market trends and determine whether it is profitable to go for it or not.
Undoubtedly, 2023 is a non-profitable year for investors who choose Ethereum for investment. The sudden drop in the price, i.e., 64%, is quite a massive loss. But still, many people think it will rise with time and specific factors. Many beginners want to know whether they should invest their little money in this asset or not.
It is hard to predict the trends and price value of Ethereum. As an investor, you need to research thoroughly and understand market fluctuations. If you want to invest in this asset, you are doing it at your own risk. Every person has a different expectation regarding the price value of ETH at the end of the year.