Prominent Analyst: Ethereum is Ready for an Upswing
Ethereum is the second most valuable cryptocurrency in the market, next to Bitcoin. Well, it used to be.
The value of ETH, the native cryptocurrency of Ethereum, has seen a downward spiral in the past weeks, settling on a $229.99 valuation at the time of this writing. Just earlier, last September, it fell to its all-time low this year of $185.
This is comparing it to earlier this year when ETH kicked off 2018 with a whole lot of bang when it reached a high just short of $1,400.
Supporters have even touted that ETH would overtake Bitcoin, coming from a high of $1,700 late last year. But, alas, the market had other plans for the struggling cryptocurrency.
The reasons for this downward trend are numerous, but a lot of it can be attributed to the massive sell-off of ERC-20 blockchain projects which the Ethereum platform is currently supporting in droves, with numerous ICOs and millions of dollars in ETH raised.
As the cryptocurrency market entered a decline, however, many of these projects sold off their ETH reserves for fiat currency. September alone saw the selling off of more than $30 million worth of ETH. The ensuing panic sells caused a major downward spiral of the price of ETH, more so than any other cryptocurrency in the market. ETH lost more than half of its price because of this.
Some analyst, however, feels that all is not lost with Ethereum, and is in fact, about to see a resurgence and a major comeback. The all-time low prices of ETH stemming from the sell-off seem to have a silver lining: investors are willing to buy more of it at these “bargain” low prices.
Foremost analyst Tom Lee, the famous Bitcoin advocate who predicted it returns to form of $25,000 valuation, predicts that Ethereum will hit off and peak at $1,900 by the end of this year. Sounds overly optimistic, and we can’t blame people for giving Tom Lee a lot of online backlash over this forecast.
Still, he could be right, but it’s going to take a lot of maneuvering through market challenges to get there.
At this juncture, it’s going to take a major investment for the price to go back up, and it needs to let off a little bit of the pressure from some of Ethereum’s major competitors, such as EOS. Ethereum needs to cement its lead as still the go-to platform for true decentralization applications.
At the end of the day, the cryptocurrency game is very unpredictable, and it would be folly to dismiss fully or trust completely Tom Lee’s prediction with absolute certainty.
Only time will tell if the potential drove of investors snapping up ETH tokens will change its fortunes. If this happens, Ethereum’s value could be back up to early 2018 levels. We’re counting on the comeback happening a little bit later, rather than sooner.
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