Will Ethereum go up? When will Ethereum go up?
Will Ethereum go up? With ETH rising above $1100 today, is it time to buy Ethereum now?
Why was Ethereum going down?
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 last 6 months. It is the exact mirror of Ethereum’s prices. This 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.
Ethereum’s unwinding over between May and June coincides with a significant drop in TVL (Total Value Locked) on the Ethereum Blockchain during and after the $LUNA Crash as well as the weekend crash. Alts are getting hammered and since most of them trade on Ethereum, ETH is hurting the most. With the overall crypto market heading lower and many transactions operating on the Ethereum Blockchain, this was expected. Ethereum was hurt much more after the $LUNA Crash.
Will Ethereum go up?
Ethereum has already risen from June’s bottom. And in the last 24 hours it is up by almost 10%. It may further go up because :
- Many Technicals began to become favorable for both Bitcoin and Ethereum after the crash last weekend
- Ethereum had crashed below $900 which was 80% below the November 2021 peak. With two interest rate hikes already completed, the chances of Ethereum falling significantly had diminished
- As interest rates were hiked, Crude Oil prices began to unwind in June. Crude Oil prices are down nearly 10% in the last 2 weeks. Fall in Inflation should be visible in the next 6 weeks or even earlier
When will Ethereum go up?
- Ethereum has already risen from June’s bottom. So there is a high probability ETH will remain above $1100 for some time now
- However, even if it were to fall again, Ethereum is likely to go up in July if the US reports a lower consumer inflation rate. After all, Ethereum began to fall from its peak when the US reported an inflation rate higher than 6%. What are the chances of the US reporting a lower inflation rate? It is moderate.
- Energy prices (Gas prices) in the US have begun to fall over the last week. However, much of the benefit of this fall is likely to be visible in August.
- Consumer spending on Goods began to fall in May itself and may fall even more so in June. So the chances of a lower inflation rate are moderate
- Ethereum is likely to go up in August if the US reports a lower consumer inflation rate. Given 3 interest rate hikes by the Fed by August and Crude oil prices likely to have fallen closer to $100, the chances of this are high
Will Ethereum go up? What are the risks of this not happening?
- Another Luna or Celsius kind of Crash
- US economy falls into a recession and there are job losses
- Competition upgrades like Cardano’s Vasil Hard Fork taking customers away from Ethereum
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Note: Crowdwisdom360 collates Predictions and data from all over the net. Please consult a registered investment advisor to guide you on your financial decisions.