The recovery in the Ether price would reduce panic in cryptocurrency markets and prevent a significant drop in mining activity. If the changes to the consensus protocol do not occur soon, the value of ETH might collapse further.
Ether (ETH), the native cryptocurrency of the Ethereum network, has suffered several delays with the Proof-of-Stake (PoS) upgrade. The fear among investors and miners due to the last drop in the price reduced the profitability of mining with graphics processing units (GPUs).
Since the current landscape in the market is considerably alarming, many believe Ether could collapse to lower levels. It would be necessary to make an urgent change in the protocols to prevent that from happening. The price of ETH flirted with USD 850 some days ago but is now around USD 1,090.
Ether is trading at around USD 1,094 and has accumulated a 2.2% gain over the last 24 hours. While its daily trading volume is above USD 13.10 billion, its market capitalization is about USD 132.68, according to CoinGecko.
Ether Could Stop the Chaotic Situation within the Crypto Market
The recovery in the price of Ether may be crucial to reducing panic in cryptocurrency markets and miners. If that did not happen, there might be a significant drop in the ETH mining activity and the value of the cryptocurrency.
The Ethereum upgrade to change the mining consensus to PoS could cause prices to rise above USD 1,500. However, if that did not happen soon, there might be an increase in sales of the second-largest cryptocurrency.
Regardless of the change, people who have bought GPUs over the last few months will suffer the consequences. There has already been an investment of USD 15,000 million in GPUs and mining equipment in just 18 months. A change would hurt the mining activity but might save Ethereum from a steep decline, bringing new hope.
The Analysis and Prediction of the Ether Price in the Short Term
If the changes to the consensus protocol do not occur soon, the price of ETH might drop by at least 20%. The technical indicators in the 4-hour timeframe already show that there will be a crash soon.
The value of Ether might fall back to the demand area of around USD 1,000 within the next few hours. While the ENV channels, which rejected a bullish continuation, validate that, the candlesticks make their way to the lower side.
In addition, the RSI has rejected the bullish continuation and is now on its way to around 30 points. The MACD fell below 0 points and made a bearish crossover with the EMAs, thus confirming further drops. In addition, the low volume and the sales have prevailed.
Investors should pay attention to the price of ETH in the coming days and watch the supports USD 1,000, USD 940, and USD 814.
It is always recommendable to research before investing in any asset to avoid making wrong decisions. Knowing how the price of Ether or another cryptocurrency behaves allows predicting where it might head next.
By Alexander Salazar
