Ethereum Forecast for April 2022

Ethereum has started its upward movement. Now, whether buyers will be able to maintain this momentum largely depends on how the next Bitcoin trend will develop, which, having passed through a bearish phase, has shown in recent weeks that it has the strength to resume a bullish trend.

Some analysts claim that during this year Ethereum will be trading around $5,000, aiming for $5,500. Let’s try to find out a little more and see if ETH can really break into the bull market in the medium term or not.

Will ETH be able to reach $5,500 in a short time?

As the data says Coinmarketrate.com Ethereum ended 2021 in relative difficulties, which led to a pullback below the $4,000 mark for the asset. All this is within the framework of annual growth, which exceeded the most optimistic forecasts, and opens up new scenarios for the future, even short-term, for this crypto asset. The historical highs, from which it then corrected, have not yet returned, but the movement towards the restoration of this level has already begun.

And so, after a big correction, the situation went up and down, but ETH for many is one of the cryptocurrencies that should be monitored constantly, including in connection with the move to version 2.0. An interesting situation, which we summarize, also showing the historical trend of this cryptocurrency.

Ethereum: a historical trend

The historical trend of Ethereum. Source: Coinmarketrate.com

The price of Ethereum is very volatile. Experts expect a new historical maximum in the long term.

According to the analytical company Coinmarketrate.com currently, the capitalization of Ether is the second largest in the cryptocurrency world, after Bitcoin (at the moment it is 392,014,476,475 US dollars). Shortly after its launch in 2015, at the beginning of 2016, it had already achieved a cost increase of about 15,000 percent. In June 2017, the ETH coin cost more than $ 300, and at the beginning of 2018, after a significant price increase, it was already worth $ 1,380. In 2019, the price settled between 100 and 200 US dollars after a sharp correction.

Since the beginning of 2020, there has been a clear upward trend again, which, after a short-term low in the spring of 2021, culminated in reaching a historical maximum of $4,859.50 on November 10. Since mid-November 2021, the Ether price has been in the correction phase.

What factors influence the price of Ethereum

Numerous factors affect the price of Ether. For example, economic policy decisions affect the value of many cryptocurrencies. The most recent example: the US Federal Reserve System (Fed) announced a turn in monetary policy. As inflation in the US hits new records, the Fed decided to raise the key interest rate and reduce the total volume of its own balance sheet.

Due to the tightening of monetary policy, many investors are abandoning risky positions, such as cryptocurrencies. The price of ETH, for example, fell by double-digit percentages during the announcement of the interest rate reversal.

In addition, investors are increasingly abandoning risky investments because of the global rhetoric about the war. For example, on February 24, 2022, the Ether dropped by a good twelve percent.

At the same time, the price of Ethereum is affected by the progress and news around the crypto project. For example, the Ether is regularly updated with software updates that promise more efficient processes in the Ethereum network.

Even one person (though the richest person in the world) Elon Musk has also repeatedly provided great movement in the cryptocurrency markets. Musk’s tweets regularly lead to sometimes sharp fluctuations in cryptocurrency prices, so critics sometimes accuse him of manipulating the market.

In 2021, Ethereum was the strongest cryptocurrency (among the well-capitalized ones), and even a possible slowdown in value growth should not mislead us. Today, it is one of the strongest in the cryptocurrency space.

Ethereum continues to be the most viable alternative to BTC, at least in terms of investment, and this will be one of the factors driving the growth of the token’s value during 2022. A year that sees new forecasts, in the direction of $5,500 per token.

Overcoming the historical maximum forced all the main analysts of the sector to revise their forecasts upwards. Even after the correction below $3,000, the forecasts for this year remain very positive and indicate a possible growth well above the historical maximum reached in November. A partial correction, at least according to experts, should not be a serious problem, since she returned with some dexterity above this level anyway.

And so, April…

After the correction at the end of the year, Ethereum returned above the $3,000 mark. The limit, which, having lasted as an insurmountable wall for several weeks, was exceeded at the end of March. Could April be the month of the relaunch of this cryptocurrency?

As we can see with the help of technical analysis, new bullish trends are expected, which will make it possible to return to the maximum levels. The strong uptrend is also caused by the emergence of ETFs that have physical copies of Ethereum and enjoy great success on regulated exchanges. The implementation of the “London” update may also change the prospects of the network for the better, as it has already helped to reduce commission fees, which are currently the biggest problem of the blockchain. And all this with accelerated preparation for the transition to Ethereum 2.0.

To get a more complete picture of what could happen with Ethereum in April, we will, as always, have to add the results of technical and fundamental analysis. Trying to also scale down very short-term trends. After such a takeoff, it is more than normal that corrections are looming on the horizon, especially when Bitcoin is pulling behind them.

But, we would like to remind our readers that technical indicators often turn out to be unsuitable for obtaining clear indications of the future movement of cryptocurrencies, so we will have to follow the trend of moving averages more closely, which will be constantly updated.

Forecasts based on fundamental analysis

As for the fundamental analysis of Ethereum, the picture that we have already drawn over the past year is more than clear. ETH remains one of the strongest and most valued assets, even strengthened by the new wave of DeFi tokens, which are based precisely on its blockchain. And this seems to be the news that everyone is waiting for now, even those who invest and are not interested in the actual use of cryptocurrencies.

Thus, fundamentally, the picture for Ethereum remains “bullish”, which may also be related to the London fork, which revolutionizes the way remuneration is calculated (and distributed among miners). With a powerful deflationary effect for the entire monetary ecosystem under the Ethereum brand.

The forecast of fundamental analysis can only be bullish and in favor of long-term positions in Ethereum, which today, more than ever before, can offer investors good prospects. Despite the fact that the record highs of last month are still far away, optimism reigns in the markets.

Touching historical price records!

According to many experts, today is the time for investors to act, since the bulls have enough strength to force Vitalik Buterin’s cryptocurrency to rise above its historical maximum, about 4,700 US dollars.

For this opportunity to become a reality, the cryptocurrency market will have to break the fragmented trading model observed in recent months and start a new parabolic cycle.

We will see whether this hypothesis about the development of ETH prices will actually take place in the coming months, or whether expectations will be restrained instead. Something we’ve had the opportunity to experience several times over the past seasons