Ethereum Is About to Collapse! Is It Time to Sell?

Ethereum prices are currently facing a significant downward trend, which worries investors.

Downward Trend of Ethereum

Ethereum has been in a downward trend in 2022. The cryptocurrency witnessed an all-time high in 2021, when bitcoin reached its highest value. However, Ethereum has been facing serious volatility since the market collapse in the fourth quarter of 2021. Eth token successfully crossed the resistance of $4000, which made investors have high hopes for its future prospects. But now,

Ethereum token is difficult to overcome the resistance of $3000. Since all cryptocurrencies are interrelated, it is a well-known fact that as long as BTC falls, ETH will fall, which should not be surprising. The general discussion about Ethereum is that the market value of the cryptocurrency should soon approach bitcoin, which is one of the many reasons why Ethereum tokens can soar in such a short time. But eth does have its own benefits, and the network offers several benefits to investors and their developers.

Basically, it is well known that Ethereum’s revenue is higher than bitcoin, but now, with the upgrade of Ethereum postponed to the third quarter of 2022, experts predict that this cryptocurrency will collapse soon and investors may suffer heavy losses.

Big Fluctuation

Ethereum is one of the most famous altcoins in the market. Analysts forecast that the cryptocurrency could grow by 400% by the end of 2022. Although the cryptocurrency has seen huge growth since its launch, Ethereum’s price has recently faced big fluctuations. Unlike bitcoin, the utility of Ethereum as a software network makes it a profitable choice to invest in applications, new tools and NFT.

There are several factors that restrict the ups and downs of the market value of Ethereum, but at present, the most prominent factor seems to be its delay in launching eth 2.0 upgrade. At present, Ethereum merger constitutes a key part of eth 2.0 upgrade, which is postponed to the second half of 2022. This made investors quite impatient, and they began to believe that the upgrade was only part of several false promises spread by Ethereum developers.

Why Was the ETH 2.0 Upgrade Delayed?

Ethereum 2.0 aims to demonstrate the transformation from proof of work (POW) to proof of entitlement (POS) consensus model, which is very popular in reducing the carbon footprint of cryptocurrencies. It will also end Ethereum’s mining activities, thereby reducing concerns about its energy consumption. The merger upgrade will redefine the sequencing of transactions on

Ethereum to make it more efficient and sustainable for wider adoption. But until then, experts believe that investors will continue to expect it, and cryptocurrency will soon begin to lose investors without any fruitful results.

Cryptocurrency analysts also said the market was showing the volatility brought about by the war. Ethereum has rebounded quite frequently in the past few weeks. In fact, at the time of writing this article, according to coinmarketcap, the price of Ethereum token was $2995.44.

Do You Think It is Time to Sell Ethereum Now?

There are several reasons why Ethereum is so turbulent these days. In fact, even before the Russian Ukrainian war, the cryptocurrency had provided its investors with several reasons to sell their investments. However, since the cryptocurrency market is mainly based on investors’ speculation, it is quite difficult to evaluate and determine the specific reasons for Ethereum’s poor performance.

Government officials have shown increasing interest in cryptocurrency regulation and may even create digital currencies issued by the government. All these have shaken the foundation of the cryptocurrency market. But selling eth tokens may not be a good idea.

Ethereum is still the second largest cryptocurrency in the market. The upgraded version of eth 2.0 will still come, and the cryptocurrency will certainly overcome its bear market state and soon run in the market with a bullish price rebound. But investors should be careful about its volatility, despite its perseverance with eth.