Ethereum price has suffered some setbacks in recent weeks. In the middle of the year, the Ethereum price was able to rally to $2,000. But especially after the Ethereum merger, there was a bearish phase that drove the price down in the last weeks of 2022. But can the Ethereum price still reach $5,000 in 2023?
In this article, we want to discuss the Ethereum price in the coming year 2023 and explain why a big increase could be imminent next year.
How has the Ethereum price evolved in recent weeks?
The Ethereum merger has been the most important event for the Ethereum network for several years. The network has been converted to Proof-of-Stake. Before the merger, the price therefore doubled from $1,000 in June to $2,000 in August in anticipation of a massive improvement in efficiency.
The closer the merger got, the more the price of Ethereum fell again. After the merger, there was not enough movement. It was only with the crash of FTX that Ethereum again suffered heavy losses. The price briefly fell back to $1,100. In the past few weeks, the Ethereum price was able to break above the $1,200 mark againabilize.
Why are we seeing such a tough time for Ethereum right now?
Over the past few weeks, the crypto market has been hit hard by the FTX crash. The actual price drop was not as massive as one might think. But in the weeks that followed, uncertainty remained in the market. Many crypto companies are under scrutiny and the trust in the market has been permanently damaged.
As a result, altcoins in particular see hardly any upward movement. Without a strong bitcoin growth signal, it is almost impossible for coins/tokens to see their value appreciate. This has a consequential effect on Ethereum and its price. After all, many tokens on the market are based on the Ethereum protocol.
Why could Ethereum price increase further in 2023?
The FTX crisis, combined with the general bear market, has caused many cryptocurrencies to be undervalued at the moment. It could stay that way for a few more weeks. But it also means that a trend reversal would result in stronger than usual price increases. The Ethereum price could still increase massively in 2023.
We should keep in mind that the efficiency gain from moving to Proof of Stake and the increase in scalability from other ongoing updates are currently not very visible in the price. If the crisis were to disappear again in 2023, the Ethereum price could return to a “realistic” level.
2023 could already see high prices for the following reasons:
- In the last bear market the second year, 2019, also showed a strong multi-month rally (Bitcoin price tripled).
- Interest rate hikes by the US Federal Reserve are expected to end in 2023. Inflation in the United States is actually falling.
- Confidence could return, if no more crypto businesses become financially unstable. The current crisis could increase the resilience of the market.
Could Ethereum reach $5,000?
A surge in the price of Ethereum to $5,000 would more than quadruple the price. At first glance, this seems very ambitious. But the factors mentioned above could lead to a massive increase in the value of Ethereum. If there is an Ethereum rally in the next few months, a FOMO could even push the price towards $5,000 in the short term.
If the price of Bitcoin were to increase by a factor of 3 again in the next year 2023, altcoins could increase by a factor of 3 to 5. From these perspectives, an Ethereum price increase to $5,000 would be quite realistic.
Is it worth investing in Ether Token now?
The ether token could be a good investment right now. However, you should keep in mind that there is still a possibility for the price to fall below the $1000 mark in the coming days and weeks. You would tend to have stamina.
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