In an April blog Bitmex CEO Arthur Hayes predicted ETH would drop – he was right – then his Ethereum price prediction for 2022 was $10,000 – by the end of the year and start of 2023.
Many follow the Medium blog of the crypto capitalist – but will he also be correct about the Ethereum price having the momentum to reach $10k?
What is Ethereum?
Ethereum provides a peer-to-peer network that executes and verifies smart contracts, enabling participants to transact with each other without a central authority. Developers use Ethereum’s platform to build decentralised applications by using the Ethereum Virtual Machine. Ethereum has cemented its place as the second-biggest coin by market cap.
Cryptoassets are a highly volatile unregulated investment product.
Ethereum Price Prediction 2023
When Ethereum (ETH) was trading at around $3,500 at the beginning of April 2022, Arthur Hayes forecasted that ETH would drop to $2,500 by June.
He was correct, although the Ethereum price hit that level in May and has even dipped to around $1,700 on some crypto exchanges. Ethereum investors watched the coin make an all-time high in November 2021 by reaching $4,870. Since then, ETH has been in an over six month downtrend, currently hovering at around $2,000.
Investors who bought the top are down more than 60% on their Ethereum investment. Hayes also sees further potential downside for Ethereum. He said he’ll be a Bitcoin buyer at $20,000 and an Ethereum buyer at $1,300. A drop to $1,300 means that Ethereum will plunge just over 70% from its ATH.
Although such a crash would be devastating to investors who bought Ethereum’s top, Hayes sees a bullish future for the coin. He predicts that Ethereum will go to $10,000 by 2023. Is that possible, considering such a massive crash?
Ethereum Technical Analysis
The Ethereum price gained momentum in December 2020, and it passed the 2018 all-time high in January 2021. The price didn’t struggle to breakout past that resistance level and reached just above $2,000 before retesting it. Ethereum bounced off the new support level and surged to $4,383.
A 60% drop followed, resulting in Ethereum reaching $1,713 before pumping to its new all-time high of $4,870. Whenever Ethereum has set a new high, we’ve experienced massive volatility. Corrections are normal after massive bull runs.
Ethereum has made a lower low after a retrace to $2,160. Further downside for Ethereum is on the cards. But where does strong support come in and a possible reversal to the upside?
The crypto market has shown that after breaking into a new all-time high, a massive crash follows and a retrace to the previous all-time high is almost inevitable. That seems to be Ethereum’s trajectory for the short term. Strong support awaits Ethereum at around the $1,400 price level, which is the coin’s previous all-time high.
Will Ethereum Go Up in 2022 – 2023
Hayes is definitely on to something by stating that he would buy Ethereum at $1,300. At that price level, Ethereum could experience quick price action, where a candle dips below support, making traders believe that further downside is possible – a ‘fake out’ to shake out the weak hands.
Buyers could step in with massive volume, resulting in a wick forming below support and a reversal. So that explains the possible Ethereum upside, but can we justify Hayes’ Ethereum price prediction of $10,000?
The crypto market has seen Bitcoin crash 80% before putting in a new blow-off top. That’s happened several times in a few years. The Bitmex CEO’s prediction for the Ethereum price could hit by the end of 2022, or take until 2023 – 2024 if it takes longer for the next bull market to kick in.
If Arthur is right and the current bear market ends by 2023, followed by a bull cycle for Ethereum with a $10k price target, that would be a 500% return on investment (ROI) for those buying Ethereum at the today’s ETH price levels.
If ‘the flippening‘ also plays out, the prediction that ETH can flip BTC in market cap, that would also mean being up in BTC value as well as USD.
Investors should be careful when investing in one cryptocurrency as profits aren’t guaranteed. As the Terra (LUNA) crash showed, don’t over-invest in one altcoin – diversify into several of the best altcoins.
Related
- Ethereum Merge Date set for August, Vitalik Buterin Confirms
- How to Earn Interest on Ethereum
- Is Ethereum a Good Investment?
Cryptoassets are a highly volatile unregulated investment product.