Assessing the Possibility of Ethereum Hitting $7K in 2022
Of the top crypto assets, Ethereum had been one of the best performers of 2021, charting close to a 330% rise in price throughout the year. However, after making a new all-time high of $4,847 in early November 2021, ETH’s price saw an over 70% drawdown in January 2022.
While ETH’s high ROI and relatively strong trajectory gave way to much-high price predictions for the coin’s future, with the recent drawdown in play, many of those stood invalidated.
As the total crypto market came down crashing under the $1.5 trillion mark on January 24, hopes of a high jump to a new ATH seemed to vanish. Nonetheless, recently, these hopes were ignited yet again after Finder’s prediction of an Ethereum year-end price close above the $7000 mark.
Ethereum Price Prediction
Ethereum’s price seemed to be down on its knees along with the rest of the crypto market starting this year with lows around $3673. For now, Ethereum’s trajectory in 2022 has been mostly bearish as the asset traded at $2,872 at press time.
Despite the recent drawdown, according to Australian fintech Finder’s panel of 33 crypto specialists, Ethereum’s price is expected to reach $7,609 this year, while it is expected to end the year at around $6,500.
Furthermore, the panel predicted that in the long term Ethereum’s price will reach $10,810 by the end of 2025, and $26,338 by the end of 2030. Interestingly the 2025 and 2030 predictions recently made, were 30% and 48% lower than the predictions made by the firm in October last year, respectively.
Additionally, 79% of the panelists believe that Ethereum’s migration to a proof-of-stake model (PoS) would lead to an increase in price, but 11% believe it could drop Ethereum prices due to persisting high gas fees and scalability issues.
What to Expect From The Top Altcoin?
The Finder panel appeared fairly bullish on ETH’s value, and if the aforementioned prediction turns true it would mean that ETH’s value will increase roughly 100% by the end of the year.
That said, data from Longforecast presented a December 2022 price prediction of $2721 which was drastically low.
Notably, this could be due to ETH’s short-term performance and high correlation to BTC which has led ETH to dip lower when BTC dips. At press time, while ETH was down 5% on the weekly, BTC’s price was down by only 2% during the same time.
For now, with ETH’s trajectory still looking shaky it seems like at the short-term ETH’s price could continue to consolidate. However, looking at Ethereum’s network growth the $7K price prediction doesn’t seem like a long shot.
As the Ethereum hash rate continues its upward trend, hitting record all-time highs, a stunning 240% rise from the beginning of 2021, ETH’s long-term growth looks intact.
For now, the next line of resistance could emerge at the 21 twelve-hour Simple Moving Average (SMA) around $3,000, coinciding with the 78.6% Fibonacci retracement level. If that resistance level is breached a short-term price rise could be expected.
This article was originally posted on FX Empire