Ethereum has not been at its best since the start of 2022. Many have called it a shaky beginning to the new year. An overall analysis highlights that the volatility has increased as ETH dropped below $2,200, the lowest since July 2021.
Experts are advising traders to look at it as a long-term investment and get onboard only after prioritizing their basic investment and saving plans.
Ethereum Remains Below $3,000
While 2022 has not been the year for Ethereum till now, experts predict that Ethereum’s price could potentially hit and surpass $12,000 this year.
According to figures, the value of Ethereum went below the mark of $2,600 two times in recent days. It has been continuously losing value, and at last hit the lowest mark on February 03, 2022. This Ethereum price prediction does show a brighter end to the current year but increased volatility poses some serious questions to it.
The value of Ethereum has been around $3,000 for quite some time now. It last hit the value of $2,900 in the previous week, and it has been losing ground since then.
As for the previous month, Ethereum was at $2,200, the lowest figure since July 2021.
Rising volatility in Ethereum, or any cryptocurrency for that matter, is being largely attributed to two factors. These two factors include a surge in the inflation rate and the expectation that the US Federal Reserve Bank may hike the rate of interest in March 2022.
There is no clarity if the hike will be 25 basis points or 50 basis points, but the fact that the board is sure to hike the rate of interest has caused traders to wonder about their investment in cryptocurrency.
The aim is to counter the rise in the inflation rate; however, crypto volatility has taken a huge hit in the process.
Crypto experts remain unfazed about this as the government has now started taking an interest in regulating the crypto market. Many even believe that the government is in the process of launching its digital currency.
Ethereum continues to trade at around $3,000. More importantly, its growth appears to be stalled at that mark with no increase in estimation.
Ethereum was priced in the range of $2,600 and $3,200 in the last week. It has shown a minor growth in the range of $2,200 and $4,000 in recent days, but the $3,000 level remains stuck in its place.
It touched the highest value of $4,850 on November 10, 2021, only to fall to the value of $4,100 on December 27, 2021.
Experts have issued an advisory, asking traders to look at it from the perspective of a long-term investment. They have also asked traders to prioritize paying off their debt and saving for retirement before investing in the crypto market.
An investment of 5% of the total portfolio value is more than sufficient for everyone as of the moment, experts say.
