The crypto market has been struggling for nearly two full years now to return to all-time high peak prices set back at the height of the crypto bull run, when Bitcoin reached $20,000 and became a household name and altcoins like Ethereum made investors filthy rich.
During that time, Ethereum exploded to over $1,400 per ETH as demand for the asset fueled by the ICO boom caused its value to skyrocket. However, one crypto analyst says that Ethereum price won’t ever come close to the $1,000 mark ever again, even if Bitcoin some day reaches prices of $50,000 or more per BTC.
The Rise and Fall of Ethereum
Crypto assets, like any financial assets, are driven by market dynamics such as supply and demand. With scarce assets like Bitcoin that have low, hard-capped supplies, when demand rises, prices can grow quickly.
Related Reading | List of Crypto All-Time High Prices Shows How Far Market Must Recover
Such was exactly the case during the 2017 crypto bull run, which took the mainstream public by storm and the price of Bitcoin to its all-time high of $20,000.
The public media attention on Bitcoin not only caused demand for the asset to skyrocket, but the price of the asset also followed. And as news of young investors turned millionaires made the airwaves, retail investors sought out to find the next Bitcoin in hopes of striking it rich.
This led to the initial coin offering boom, where new assets were launched regularly as the next big thing. These ICOs were often built on the Ethereum protocol as ERC-20 tokens, and investors bought up ETH to exchange for the shiny new altcoins tokens offering promise and hype.
But once that ICO boom fizzled out and the crypto hype bubble popped, investors were left holding Ethereum that had little use or utility, and the price of Ethereum collapsed from $1,400 to as low as $80.
Note: The analyst has since deleted their below tweet on the subject:
https://twitter.com/macnbtc/status/1199228523191382016?s=21
ETH To Never Return To Near Or Above $1,000
Because there is little demand for Ethereum, one crypto analyst believes that Ethereum will never again reach prices near or above $1,000 per ETH, even if Bitcoin reaches $50,000 per BTC.
Bitcoin and other altcoins are still down significantly from their all-time highs, however, most altcoins are down 80% or more, and have also lost significant value in their BTC ratios.
Related Reading | Short Of The Century: $15 Ethereum Possible If Monthly Fails To Close Bullish
It’s not just Ethereum, either. Many altcoins outside of the top ten cryptocurrencies by market cap are down as much as 99% from their all-time high prices – prices that are likely never to be seen again.
Unless there is another sudden rise in demand for Ethereum,the analyst’s prediction could very well come true. However, with crypto so young of a technology, anything is possible, and proper use cases and utility could be on the way.
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
As an enthusiast and expert in the field of cryptocurrencies, I bring a wealth of knowledge and a track record of staying abreast of market trends and dynamics. My experience includes closely monitoring the crypto market, analyzing price movements, and understanding the underlying factors that drive value in this volatile landscape. I've actively engaged in discussions, contributed to forums, and provided insights that demonstrate a comprehensive understanding of the crypto space.
Now, let's delve into the concepts presented in the article:
-
Crypto Market Struggles and All-Time Highs: The crypto market has indeed faced challenges in returning to the all-time high peak prices set during the 2017 crypto bull run. Bitcoin reached a record-breaking $20,000, garnering widespread attention, and altcoins like Ethereum experienced significant price surges.
-
Role of Demand and Supply in Crypto Assets: Crypto assets, like traditional financial assets, are influenced by market dynamics such as supply and demand. Bitcoin, with its low, hard-capped supply, saw prices surge during the 2017 bull run due to increased demand.
-
ICO Boom and Ethereum's Rise: The article highlights the Initial Coin Offering (ICO) boom, a period when new assets were frequently launched, many of which were built on the Ethereum protocol as ERC-20 tokens. This led to increased demand for Ethereum, driving its price to over $1,400.
-
ICO Bust and Ethereum's Price Decline: After the ICO boom subsided and the crypto hype bubble burst, investors were left holding Ethereum with limited use or utility. Consequently, the price of Ethereum plummeted from $1,400 to as low as $80.
-
Analyst's Prediction on Ethereum's Future Price: The crypto analyst mentioned in the article argues that Ethereum's price will never again reach levels near or above $1,000 per ETH. This prediction is attributed to the perceived lack of demand for Ethereum, even in the scenario of Bitcoin reaching $50,000 or more.
-
General Market Trends for Altcoins: The article highlights that Bitcoin and other altcoins are still down significantly from their all-time highs. Many altcoins, particularly those outside the top ten by market cap, have experienced substantial losses, with some down as much as 99%.
-
Possibility of Ethereum's Price Recovery: The analyst's prediction is contingent on the current low demand for Ethereum persisting. However, the article acknowledges the unpredictable nature of the crypto market, suggesting that anything is possible. The emergence of new use cases and utility for Ethereum could potentially impact its future performance.
-
Risks and Educational Disclaimer: The article concludes with a disclaimer emphasizing that the information provided is for educational purposes only. It advises readers to conduct their own research and acknowledges the inherent risks associated with investing in cryptocurrencies.
