Introduction
The fact that the price of ETH had remained low in 2022 and unable to attract large investors yet had got many traders wondering if we are in for a crypto winter in 2023. With the Fed continuing to raise the interest rate more recently in December by 50 bases and stating they would continue doing so next year till the minimum target for inflation at 2.0 is achieved has become the greatest worry for investors on what to expect from the market in 2023.
Will the current bear season result in a crypto winter next year? Will it be another opportunity to short ETH? What can we expect from the market by 2023? Is ETH set to recover again or should we anticipate more dips? This work has provided useful insights into these pressing questions today.
What is ETH?
The term ETH is the abbreviation for Ethereum. Virtually all crypto traders today must have heard of Ethereum. Thus, this coin ranks as the second most valuable Cryptocurrency in the world today. Ethereum offers a secure decentralized platform for building Dapps, gaming tokens, NFTs, meta verse tokens, etc, at a cheaper rate too. Ethereum is today one of the most popular blockchains for running smart contracts. Its recent upgrade to proof-of-stake mechanism has made it more scalable and secure for carrying out transactions.
Is 2023 the time to go short on ETH?
ETH has been on a strong downward trend since 2022. The price of this coin has been held down by the series of aggressive interest rate hikes from the Fed that caused many investors to withdraw from the risky assets. Also the series of crashes witnessed amongst various crypto exchanges this year especially the crash of FTX exchange have further caused many investors to be all the more fearful when it comes to crypto investment. Will this fear cause more investors to withdraw from investing in crypto by 2023? Is
ETH currently set to recover or are the bears still in charge?
The market is still very undecided at this point. While many were previously hoping for a lasting recovery for ETH after the price reclaimed the support at $1350 during the second week of December. This level was lost recently as of 15th December, 2022 after the Fed’s Session the previous day which saw the interest rate for the US raised again by 50 basis points this time.
The price is currently ranging above $1250 level. At present, ETH is expected to reclaim its previous support again to attract more investors to trade ETH. Failure to hold above this level could trigger more dips for ETH before the year ends.
Forecast for ETH in 2023
The general expectations for ETH in 2023 are that the price will recover. With the Fed having slowed down from December on the rate of the aggressive interest rate hike, many analysts are of the view that the Fed has gotten to the pivot point and will likely discontinue hiking the interest rate by 2023. This will allow ETH and other cryptocurrencies to recover again. Hence many see Ethereum as crossing $2300 level by 2023.
Advantages of trading ETH
- Ethereum serves as an easy means for making payments online.
- It serves as a store for value for investors today.
- Often employed as a means for hedging against inflations.
- Trading ETH offers the trader wide exposure to the financial market.
Disadvantages of trading ETH
- Ethereum has no maximum supply and is therefore subject to future inflations.
- The price of Ethereum is often subject to Bitcoin’s dominance in the market.
Angela Spearman is a journalist at EzineMark who enjoys writing about the latest trending technology and business news.
