Ethereum can boom to the $5,000 price mark till Q1 2022. Ethereum made a new ATH on November 10, 2021, around the $4,867 price mark but has dropped 20% since then.
The second-largest crypto asset by market cap has seen wonderful growth over the past year. A lot of new projects started and reached new heights. Some optimization rollups have been great for the network and gas fees also decreased due to the EIP-4488 upgrade. ETH made a new ATH around $48k on November 10, 2021. A bearish market has dropped the price of an asset by 20% since its new ATH.
Ethereum can boom to the $5000 price mark:
A lot of widely-tracked indicators suggest that Ethereum might not see a bullish run in the coming months. I think they are totally wrong and Ethereum can boom to the $5000 price mark till Q1 2022. There are plenty of reasons which I can discuss here but two of these reasons are extremely important. One is that number of Ethereum deposits has dropped to its 23 months’ low, date from Glassnode indicates this. Traders typically move their tokens to exchanges when they intend to sell/trade them for either fiat, stablecoins, or other cryptocurrencies.
The second reason for the statement that Ethereum can boom to the $5000 price mark is that the hawkish move of the US central bank to control inflation is going to fail. The US Central bank unveiled a $120 billion a month asset purchase program to control inflation from its recent level of 6.8%. This move impacted the bullish rally of the BTC and ETH but this is not effective in the long term.
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