Home Cryptocurrency Ethereum (ETH) price drops by 14% in the first week of 2022

Ethereum (ETH) price drops by 14% in the first week of 2022

by Gordon James

In November of 2027, the price of Ethereum dropped by 14% in a week. The following month saw an increase in the market cap from $6.8 billion to $7.84 billion and was considered a good time for investors to buy back into ETH

The “ethereum price prediction end of 2021” is a prediction that the ethereum price will reach $1,000 by the end of 2021. The Ethereum Foundation has also released a statement saying that they are working on a solution to the problem.

It’s been a week since the new year began, and the crypto market seems to be behaving differently than it did in the initial days of 2021. Prices may be substantially higher today than they were at this time last year, but the pattern is not the same.

Most cryptocurrencies were increasing in early 2021 — some slowly, some quickly — but values were rising, headed by Bitcoin’s climb that began in the second part of 2020. The market, on the other hand, is now in the red, with most currencies continuing correcting from all-time highs or declining after being rejected by strong resistance levels.

This is true even for Ethereum, the world’s biggest altcoin (ETH). The crypto industry’s second biggest cryptocurrency and largest altcoin has dropped 14% in the first week of 2022, and the loss still looks to be part of the price correction that followed the coin’s mid-November milestone.

But we’ll get to it later. Ethereum has had a busy and interesting year, which might explain why its price is dropping so sharply.

Ethereum in the year 2021

In comparison to its current worth, the price of Ethereum finished in 2020 and began in 2021 at a very low level. On January 1st, 2021, it was only worth $730 per coin, but that began to change swiftly.

The coin hit $775 the following day, January 2nd, and had already increased to $975 on January 3rd. Its climb was quick, and it didn’t slow down until January 6th, when the currency struck a resistance level of $1,200. The barrier did not shatter, and it did not transform into a support at that time, despite the fact that it was momentarily breached. Instead, it drove the currency to a $1,000 support level. From then, ETH soared back up, breaking over the $1,200 barrier on its way to the next one at $1,400.

It came to a halt before reaching it, and its price was rejected once again, this time at $1,200, its fresh new support level. All of this occurred in the first three weeks of 2021, and it served as a foreshadowing of future volatility, which resulted in even greater price swings and variations.

Following this most recent decline, the price of Ethereum began to rise and break through one barrier after another. Some were able to temporarily halt its advancement or even push it back down for a short time, but they eventually failed. The price of Ethereum continued to rise over the following month, until it hit a critical resistance level of $2,000. This level was so powerful that it drove the price of the currency back down to $1450, and ETH rebounded straight back up to try again.

This level rejected it for the second time, but this time the rejection was considerably weaker. By the time it hit $1,600, ETH had reclaimed control. It then soared for the third time, breaking over the $2k resistance level and converting it into its strongest support, which prevented the price from falling below it for the remainder of the year. This happened on April 1st, and since then, ETH has risen higher than it has ever been, including a remarkable increase in late 2017 and early 2018. The currency continued to rise until it reached an all-time high of $4,170 on May 11th.

If it weren’t for the fact that this was the day that the market-wide crypto price collapse occurred, depriving most currencies of half their value, the currency may conceivably continue its ascent beyond this date. By May 23rd, Ethereum had lost exactly this amount, plummeting to $2,100.

However, as soon as it hit this low point, it jumped back up. Unfortunately, it did not rise very high — just to roughly $2,888 — before plummeting. It soared for the third time, with outcomes that were quite identical. Its price continued to fall throughout the summer, with the rare effort to rise. However, it spent the most of the summer at its new low of $2,000.

Things began to turn around in late July, when ETH began to rise again, eventually breaking over the $3,200 mark. This level halted progress throughout August, ultimately breaking in the early days of September 2021.

ETH soared further after breaking over the hurdle, topping $4,000 for the second time last year. Its pricing was rejected for the second time. It first sank below $3,200 before attempting a comeback. It was sent down again after hitting $3,600, this time to $2,800.

A fresh rally began at that time, and Ethereum was more than glad to respond. This year’s last great surge for ETH began on September 28th and carried it to $4,812 by November 8th of the same year.

Ethereum (ETH) price drops by 14% in the first week of 2022

2021 comes to a close, and a new year begins.

From that moment on, the price of Ethereum fluctuated, but the long-term trend shifted to negative. The currency first fell from its ATH to $4,000, only to rise to $4,630 in its last effort to recover. Following that, each successive decline was deeper, and each effort at recovery was weaker, until ETH dropped below $3,630 in the last days of the year.

On December 31st, the coin witnessed a last, short gain that lingered over into January 1st, 2022, however value only increased to $3,830. This happened on January 2nd, and Ethereum has been in free slide for the five days since then, falling all the way to $3,232 at the time of writing (January 7th, 2022).

This latest decrease looks to be part of the correction that followed Ethereum’s rise to its all-time high, and there’s no way of knowing when it will end. For the time being, support at $3,200 remains in place, and it may continue to do so in the future. However, since the whole crypto sector is now in the red, Ethereum’s price is currently uncontrollable. The bears are now running the market, and until they do so, investors will be on the hunt for the greatest opportunity to buy the drop.

Visit our Investing in Ethereum guide to learn more about this coin.

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The “eth price prediction 2022” is a forecast of the future value of Ethereum. The current price is $277.14 and the projection is for it to drop to $231.

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