Ether / US Dollar traded at $2,668.95 on Monday, February 24th, decreasing by $150.65 or 5.34% since the previous trading session. The decline reflects ongoing pressure on the cryptocurrency, as Ether continues to face significant volatility.
Ethereum dips by 5%
Over the past four weeks, Ether has dropped by 19.68%, indicating substantial short-term weakness. The cryptocurrency’s struggles are further evident over the past 12 months, with its price falling by 14.15%, underperforming relative to some other digital assets like Bitcoin, which has seen a much stronger increase in that period. This suggests that Ether is facing particular challenges, potentially tied to market sentiment, competition from other blockchain platforms, and concerns over regulatory scrutiny in major markets.
A rebound is on the horizon
Looking ahead, analysts are projecting a rebound in Ether's price, forecasting it to reach $3,050.45 by the end of this quarter. The expected growth could be supported by factors such as continued development in Ethereum's blockchain network, the increasing adoption of decentralized finance (DeFi), and broader institutional interest in blockchain technologies. Ethereum's upgrades, particularly the transition to Ethereum 2.0, may also help boost confidence in the network's scalability and sustainability, leading to potential price recovery.
Longer-term outlook remains mixed
However, the longer-term outlook remains mixed, with analysts predicting Ether's price to dip to $2,561.92 in the next 12 months. This projection takes into account the volatility of the cryptocurrency market and potential challenges that Ethereum may face, including stiff competition from other blockchain platforms, evolving regulatory frameworks, and market corrections. As with all cryptocurrencies, Ether's future trajectory is highly sensitive to both macroeconomic trends and the ongoing developments within the blockchain space. Investors will need to monitor these factors closely to gauge whether Ether can regain its bullish momentum or continue facing downward pressure.
