Ethereum Price Predictions: Where Will ETH Go After Today’s Crypto Crash?

The predictions for the crypto winter during 2021 seem to have come true, as the cryptocurrency had a rough start to the new year. Since the beginning of 2022, Ethereum (CCC:ETH-USD) It has lost more than 9% of its value. However, ETH remains the second largest cryptocurrency based on market cap, second only to Bitcoin (CCC:BTC-USD). So, what explains the drop in Ethereum this year? And where are you going from here? Today, let’s take a look at some Ethereum price predictions.

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Investors who have invested in cryptocurrencies as an inflation hedge may wish to review their strategy. Instead, it appears as if crypto is related to the general movement of the stock market. Yesterday, the Federal Reserve released the minutes of the Federal Open Market Committee (FOMC) meeting on December 14-15. Based on the minutes, investors are expecting a 25 basis point increase in interest rates in March, which is now expected to happen earlier than expected. After the minutes were released, Ethereum dropped as low as $3,300 before rebounding a bit.

At the FOMC meeting, Federal Reserve Chairman Jerome Powell noted that “there is a real risk now, I think, that inflation may be more persistent and … the risks of rising entrenched inflation increase.” Additionally, the 10-year Treasury yield is at a six-month high. Investors may flee to “safe haven” Treasuries in times of volatility and uncertainty.

Ethereum investors now have to contend with a hawkish Fed and rising Treasury yields. So, the big question remains: What does the 2022 program have in store for Ethereum?

Ethereum Price Prediction: Where Will ETH Go This Year?

  • CryptoNewsZ has a 2022 price forecast of $7,500. Notably, this is 121% higher than current prices. CryptoNewsZ believes that further advances in partnerships and integration will help achieve this price prediction. However, the prediction “is very optimistic from a price point of view but is undoubtedly possible for Ethereum’s near-term outlook.
  • Wallet Investor has a price prediction for 2022 of $6,838. This is an impressive increase of 101%. Additionally, the Wallet Investor sentiment picture indicates that the sentiment surrounding the ETH cryptocurrency has been very bearish in the past month.
  • Digitalcoin has a 2022 price prediction of $4,660. This forecast indicates a rise of 37%. Furthermore, Digitalcoin’s Ethereum price predictions are currently flashing a “strong sell” signal, which appears to contradict their price predictions. However, this indicates that Digitalcoin believes that Ethereum could bounce back from its lower prices during 2022.

At the date of publication, Eddie Bann did not (directly or indirectly) hold any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, and are subject to InvestorPlace.com’s posting guidelines.