The total cryptocurrency market cap has been in a range-bound market structure from May ’21 to date, with the fear and greed index recently showing extreme fear readings yesterday and last week, an indicator signalling the start of a DCA (dollar-cost averaging) campaign for the Ether into the coming months. In this post, we’ll be analysing the likely market direction of Ether in the midterm and longer-term time horizons, while considering market fundamentals, drivers and chart patterns. If you are looking forward to investing in ETH or are worried about What is Ethereum price predictions for 2022 then you are at the right place.
Let’s get started ,
Ethereum (ETH): The Historical Sentiments
Cofounded by Vitalik Buterin, the Ethereum ETH project, which started as a white paper, has been developed into a decentralized computing platform for decentralized applications DApps and smart contracts, NFTs, among other use cases. The native token on the Ethereum network is Ether (ETH) , which is used to pay for transaction fees and as collateral to borrow other tokens within the DeFi ecosystem.
Idea Validation, Market Size and future of the Ethereum project :
The Ethereum ETH networks market valuation fell from its highest market cap of 575.8999B USD on 01 November ’21 to 258.073B USD on January ’22 and is currently at a market cap of 347.70B USD. Owing to congestion of its network and high gas fees, Ethereum sees a shrinking in its NFT (non-fungible token) and DeFi market share to the Solana SOL blockchain.
As per reports from JPMorgan, Ethereum could see a further decline in market valuation if it continues to bleed market share to Solana into 2022 considering that the NFT market is the fast-growing sector of the crypto ecosystem.
However, ETH holders are optimistic about the growth and success of the network’s upgrade to a proof-of-stake blockchain and have locked over 10 million ETH in the Ethereum ETH 2.0 staking contract since November 2020.
We expect a rapid growth in market share for the Ethereum network with ETH 2.0 which is a promising upgrade that is projected to process thousands of transactions per second, in addition to adding more security and further scaling the existing Ethereum blockchain.
Fundamental Analysis of Ethereum:
Ethereum’s long-anticipated merge to a full Proof of Stake (PoS) consensus blockchain is slated to take effect by June this year 2022, where the smart contract network will use 99% less electricity compared to its current proof of work system.
The ETH 2.0 upgrade will make the Ethereum network scalable and environmentally friendly. Last year’s EIP1559 upgrade that involved the burning of ETH made the network deflationary and consequently caused a surge in the price of ETH. ETH enthusiasts hope for a successful transition to a greener network without further delays or postponement.
Ethereum Price Prediction 2022:
The current Ethereum ETH price follows a similar formation as March 2018 where the price chart signals a hidden bullish divergence in the monthly time frame.A breakdown of the hidden bullish divergence in July 2018 may be repeating itself as a likely breakdown of the hidden bullish divergence would suggest a weak uptrend and a decline in demand for the Ether token.
The last line of support for the ETHUSDT at $2438.47 was formed by the hidden bullish inside-bar price pattern on March ’22. We expect further price decline upon a monthly price close below the low price of March ‘22.If all of this plays out as analyzed , the ETH USDT may join an anticipated crypto winter. Conversely, a price close above the $3588.56 resistance could keep the ETH USDT in the current uptrend and perhaps a speculated crypto supper cycle beyond the $5000.00 round-number resistance.
ETH Price Prediction 2023:
Considering that the entire crypto market is positively correlated to Bitcoin BTC, a price correction or slowing in demand for the BTC often has a domino effect across the entire crypto market. Ethereum ETH, on the other hand, is the number one altcoin that’s holding its own against Bitcoin following the annotated monthly chart of the ETH BTC above. A monthly price close above the July ’21 bearish closing inside-bar candlestick pattern established a solid support level at 0.055205.
The ETHBTC uptrend could persist if the current month (May) signals a second hidden bullish Inside-bar candlestick pattern at the closing price. Also, a recent hidden bullish divergence on February ’22 is indicative of a surge in demand for Ethereum’s ETH over Bitcoin BTC. Again, referring to the ETHUSDT monthly chart, if the price collapse of the recent hidden bullish inside bar holds, we could expect the relative strength index to dip below the level-25 which could last till the end of 2022. If the RSI enters and exits the level-25 by the end of the year, we should expect an early Altcoin summer season at the start of 2023 with a rather dominant ETH price.
Ethereum Price Prediction 2027 :
The Ethereum network is expected to have fully migrated to an energy-efficient proof of stake network that can process higher transactions per second (TPS) that beats the current legacy payment system and blockchains. Ethereum ETH is projected to be a force to reckon with in the crypto space as analysts and enthusiasts project different and ingenious use cases that have not been thought of.
There should be a less positive correlation between ETH and BTC in five years as the ETH network would have ported to a complete PoS ecosystem. Nevertheless, the next BTC halving event could still influence a positive hike in the ETH price in the coming years, shooting beyond the $5000.00 mark..
Coingape Experts ETH Predictions:
When compared with similar projects in the smart contract and NFT space, Ethereum ETH is crushing it at the moment. These similar projects are commonly marketed as ETH killers, and a lot of them have come and gone. The popular ETH competitors are Cardano (ADA), Solana (SOL), and Polkadot’s (DOT ) token. However, we’ll analyze the ADAETH and SOLETH crypto pairs in this report.
Top Traded ETH pairs
Following a 291% surge in demand for ADA against ETH last year February ’21, the table was flipped after the bearish closing inside bar candlestick formation as the demand for ADA started to drop and a rise in demand for ETH started.
A collapse of the hidden bullish inside bar candlestick pattern on 01 January ’22 01 February validates a persistent demand for ETH over ADA and the next area for a slowing of the bearish move is the 0.0002267 and 0.0001990 support zone.
The SOLETH chart above shows a shift in demand for ETH paired against SOL as the bears force the SOLETH pair below the 01 October support (0.03790) following a regular bearish divergence after the closing price of 01 September ‘21.
Although a hidden bearish inside-bar candlestick pattern points to a further rise in demand for ETH, a monthly price close above the 0.041416 resistance will confirm an impending hidden bullish divergence on the monthly chart.
Markets Predictions for Ethereum
There’s a popular opinion among crypto analysts and enthusiasts that the Ethereum ETH could someday flip Bitcoin BTC’s market share, given the possibility to write smart contracts, the rapidly growing NFT market, and the ENS (Ethereum Name Service). This is possible if the Ethereum Dev team keeps to its June ‘22 timeline and milestones.
Heightened fear in the crypto market suggests a price decline to the January ‘22 low ($2161.00), while, while a breach of the $3588.00 high could set a new ATH above the $5k mark..
Q: When should we expect Ethereum’s proof of stake in its full form?
A: If everything goes according to plan, ETH 2.0 should assume its full form by June this year, following speculations by analysts in the space.
Q: Who would benefit most from ETH 2.0, miners, ETH traders, or ETH holders/validators?
A: Of the three participants mentioned above, ETH holders/validators would benefit the most from the complete upgrade to ETH 2.0, followed by traders/investors.
Q: Which candlestick pattern is most effective for market reversal or market continuation?
A: There are so many candlestick setups used in financial markets, however, these candlestick patterns are not built equally and do not offer the same degree of accuracy. So, we’ve found the Inside-bar candlestick pattern to be most effective for timing market reversal and continuation in the cryptocurrency market.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.