September could be a nightmare for many crypto traders and investors as Ethereum dropped by 16%. According to the records, it is the second-largest level since June.
After the spectacular rally in cryptocurrency over the past 12 months, many expect that the market would experience a pullback.
However the possibility is low when it comes to linking short-term price changes to specific events – and the overall marketplace has been a mess.
In the last year, the value of Ethereum skyrocketed by approximately 830%, making it the second most valuable cryptocurrency in terms of market capitalization.
The cryptocurrency market has entered a tumultuous fourth quarter.
The Evergrande company crisis, as well as new rules aimed at restricting or abolishing the cryptocurrency business in several nations, caused cryptocurrency prices to fall.
Major currencies couldn’t run away from the fall, Bitcoin, Ethereum and others were incredibly affected.
It was a particularly difficult period for cryptocurrency. Increased transaction costs and sluggish network speeds continue to be a source of contention.
The flaws of Ethereum, on the other hand, bring advantage to alternative blockchains dubbed “ethereum killers”. Cardano or Solana gain more adoption as users choose to switch from Ethereum to these networks.
Cheap prices, faster transactions and usage make the alternatives unbeatable, especially in comparison with Ethereum price and speed, which has been well-known for being costly and limited.
Despite that, the current overarching platform is still Ethereum with a network spread from decentralized finance (DeFi), blockchain games to NFT.
The fact that Ethereum is moving very close to the old record value, shows that this second largest cryptocurrency will confront some significant obstacles in its attempt to stay ahead of the competition.
A market crash is the biggest fear at the moment, and it would cause investors to flee.
Bulls, consolidations, deviations are typical price movements on ETH’s chart since August. The price remained below $3,500 for six days in a row.
But breaking news shows that Ethereum broke through an overhead resistance level, now, many expect the price to hit the $3952 level and probably rally beyond $4000.
A convergence of positive technical and fundamental indications has the potential to more than quadruple the value of Ethereum’s native token, Ether (ETH), in the next months, according to the Ethereum Foundation.
On the first day of October, the price of ether jumped by more than 9%, exceeding $3,300 for the first time in 10 days.
A price bounce across all of the leading digital currencies, including Bitcoin (BTC), which climbed 9.5% to reach $48,000, the highest level in 10 days, was the primary catalyst for it to see gains.
Despite its restrictions, Ethereum is hard to overlook. Because it’s currently an overcrowded network, it’s significantly more expensive than alternative networks. However, its most significant advantage was that it was one of the first platforms to provide services no other blockchain could.
First and foremost, the movement of the cryptocurrency will be determined by the performance of Bitcoin, the largest cryptocurrency in the world. There is a strong relationship between the two.
Second, the price will respond to the dangers that are present in the marketplace.
The US debt ceiling and the Evergrande issue are two of the most significant concerns that are projected. At the end of the month, the price of Ethereum will react to the mainnet upgrade, which will take place in the final week of the month.