During the past several days, the price of Ethereum has risen dramatically once more. While Bitcoin saw greater gains at first, Ether has recently outperformed Bitcoin and is once again trading above $1,700.
How has the Ethereum price changed in 2023?
Until this point in 2023, there has been a discernible trend toward substantially increased prices for cryptocurrencies. Ethereum came out on top in a huge way.
By the turn of the year, the price of ETH was still hovering at $100 lower than the milestone of $1,200. The price rose steadily throughout the month of January, topping out at just under $1,600 at the month’s end.
From the beginning of February 2023, there have been several instances of both progress and setback. At the beginning of the year, the price was able to go up to $1,680.
After that, towards the middle of February, the price began a precipitous decline, down to lows of $1,470. Ethereum’s price has been rising steadily over the previous several days and has now crossed the $1,700 threshold.
During the course of the past several weeks, there has been a substantial increase in Ethereum’s price overall. Despite this, there is still a probability that a significant collision may take place.
The market has been turning again recently, and we are witnessing bigger decreases in the price of Bitcoin. This can be followed by falls in the price of Ethereum.
Even if another market crisis is possible in the near future. Analysts anticipate a significant increase in the price of Ethereum during the next few years.
In the future weeks and months, a price of three thousand dollars would not be at all out of the question. For the next few months, it’s possible that the price of Ethereum may climb again up to the level of 3,000 dollars.
Let’s run over a few of the factors that increase the likelihood of this happening:
2019’s Versions Will Be Sold
The bitcoin market often demonstrates behavior consistent with cyclical patterns. The amount of Bitcoins in circulation is halved every 4 years which initiates the bull market.
Yet price increases of a significant magnitude are still possible even in a down market. As the bear market began, 2019 was already in its second year.
In spite of this, the price of Ethereum was able to more than quadruple. Ethereum’s price rose from $80 to $320 between the new years of 2018 and 2019 and as well as in the middle of 2019.
The year 2023 marks the continuation of the bear market’s second year and is likely to follow the same pattern as 2019.
Improving the Clarity of Regulations
The collapse of FTX was a severe blow to the cryptocurrency market and was the impetus for a price decline. As a direct consequence of this, there was a great deal of unpredictability in the market.
In recent years, regulators have taken on a more proactive role. The increased action of the United States SEC in recent weeks is noteworthy in this regard.
However, improved regulation might also have some positive side effects. The legal surety has the potential to bring about a number of benefits, particularly for the large networks of Ethereum and Bitcoin.
Both the Federal Reserve in the United States and the European Central Bank in Europe raised key interest rates more regularly in 2022. Because of this, the FIAT currencies were able to regain their previous power.
However, at the present, these actions appear to be happening less often. As a result, the fact that a rise in interest rates increases the prospect of an economic contraction is more plausible.
As a result, centralized banks have a need to exercise caution. This means that Ethereum’s price and that of other cryptocurrencies should rise over the coming weeks and months.