It’s hard to predict the direction of the Ethereum price, but there are several factors that affect the price of the cryptocurrency. In the short term, most experts are bullish on ETH, but there is some skepticism in the long term. For instance, the cryptocurrency market suffered a huge bear market in 2021. It lost about a fifth of its value from its peak in November. This was followed by a massive uptrend, largely driven by war and sanctions.
In the medium term, analysts expect ETH prices to be volatile. Bloomberg’s Mike McGlone predicts a fluctuation between $4,000 and $5,000. Meanwhile, the founder of Token Metrics believes the price could go even higher than that, reaching $8,000 or more. In addition to that, there is a lot of uncertainty about the macroeconomic environment in the coming years.
Although it’s too early to say whether the price of ETH will reach $4,000 by the end of the year, many experts believe it will rise significantly. A key support level for ETH is the $4,000 price level, which was hit during the bull run in 2021. The price of ETH will surpass this high once it breaks through the resistance region.
The macroeconomic environment is another factor that will impact the Ethereum price in 2022. The volatility in the market has created a bearish sentiment. According to the founder of Ethereum, Vitalik Buterin, the cryptocurrency has been volatile in recent months. He has recently expressed concerns about the exuberance of non-fungible token (NFT) trading. Since NFTs are valued in ETH, a decline in the NFT wave may lead to a sell-off in the cryptocurrency price