After Bitcoin initially rallied more strongly than ether token, the second-largest cryptocurrency has recently outperformed bitcoin and rallied back above $1,700.
So far, 2023 has seen a significant increase in cryptocurrency prices. Ethereum was a big winner. At the beginning of the year, the ETH price was still slightly below the $1,200 mark. In January, the price rose almost continuously, and it was around $1,600 at the end of the first month of the year.
In February 2023, things have been up and down a few times so far. The course was able to rise to $1,680 at the beginning of the year. In mid-February, the price fell sharply, and at times it was as low as $1,470. In the past few days, the Ethereum price was able to rally again and it saw a breakthrough above the $1,700 mark.
Can the Ethereum Price Hit $3,000?
The Ethereum price has seen a strong rise across the board in recent weeks. However, there is still the possibility of a major accident occurring. Recently, the market is turning again, and there have been stronger declines in the course of Bitcoin, which may follow the course of Ethereum.
Although there could be another market crash in the short term, the Ethereum price should rise considerably in the medium term. A $3,000 course would be quite possible in the next few months.
Why Could Ethereum Price Hit $3,000 in June?
The Ethereum price could hit $3,000 again in a few months. Here are three reasons why.
First, the 2019 model. The crypto market always goes in cycles. Every 4 years there is a Bitcoin halving, which starts the bull market. Even in a bear market, though, prices can rise considerably. 2019 was then the second year of the bear market. However, the course of Ethereum was able to quadruple. From the turn of the year 2018/2019 to the summer of 2019, the price of Ethereum rose from $80 to $320. Thus, 2023 is again the second year of the bear market, and it could repeat the trend of 2019.
Second, greater regulatory clarity. The bankruptcy of FTX meant a sharp cut in the cryptocurrency market and caused prices to fall. As a result, there was great uncertainty in the market. Regulators are now becoming more active. The engagement of the US Securities and Exchange Commission, which has become more active in recent weeks, is particularly important here. However, better regulation could also have an advantage. Legal certainty could bring many advantages, especially for the large Bitcoin and Ethereum networks.
Third, end of rate hikes. In 2022, the Fed in the US, as well as the ECB in Europe, raised key interest rates more frequently. This ensured that the FIAT currencies strengthened again. However, at the moment, these steps seem to be getting rarer because higher interest rates increase the probability of a recession. As such, central banks need to be cautious. This should increase the prices of cryptocurrencies, and therefore, also the price of Ethereum in the coming weeks and months.
By Audy Castaneda
