Will Ethereum go down further?

Will Ethereum go down further?

Will Ethereum go down further? Yes, Ethereum could fall further


Why has Ethereum crashed this year

  1. Cryptocurrencies began to fall after the US Inflation rate breached the key 6% level. This is in turn related to many factors including Crude oil prices. Look at how Crude Oil prices have increased over the first 6 months of the year. It is the exact mirror of Ethereum’s prices. While the mirroring is coincidental as there are other factors as well but this is an important metric to track if we have to predict when Ethereum will rise.
  2. Scams in the Global Cryptocurrency Industry: Over the last 6 months, two major crashes – Luna and FTX have brought the industry to its knees triggering increased regulation of how cryptocurrencies may operate in the future
  3. Global Economy deteriorates: The US Fed seemed to suggest two months ago that they were done with raising rates. However, with the rapid deterioration in the Chinese and German economies as the OPEC countries cut production to rise prices to manage their own budgets, the Fed Chairman seemed to suggest that more rate hikes may be needed. This is a huge negative for Cryptocurrencies as liquidity is squeezed.

Will Ethereum go down further?

Yes, Ethereum will go down further. Here is why

  • The extent of damage due to FTX is still unknown. Genesis reported it is also in trouble and this emerged 2 weeks after the FTX crisis. There could be more ahead
  • The US Economy continues to deteriorate and it is difficult to claim this is the bottom. While the inflation rate has fallen, it is way above 6%
  • The Fed is yet to signal it will not stop raising rates. Liquidity will continue to be a problem, never a good thing

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

Subhash

Subhash

Subhash, Founder of Crowdwisdom360 is an MBA and a Trained Financial Advisor with an extensive background in Forecasting in Financial Services and Politics. He has appeared many times on National TV and has written for a variety of magazines on Wealth Management and Election Strategy.

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