Our experts have analyzed possible changes in ETH price. And paid attention to factors which can lead to growth or decline of ETH in the near future.
Our experts believe that of all cryptocurrencies, Ethereum will make maximum profit by the end of this year. We predict 4 possible scenarios for ETH price as of March 31, 2023. In these possible scenarios, we consider two factors. These are the change in Fed rates and the Ethereum “Merger” ( blockchain’s transition to a new protocol) planned for September.
Scenario 1: Fed reversal (change of regulator’s policy towards lower key rate) and successful “Merger” of Ethereum. according to our experts, this is most likely scenario, with the target price of ETH at $5,000.
Scenario 2: Fed does not change policy, but ETH “Merger” is successful. In this case, expected price of cryptocurrency is about $3,560
Scenario 3: Fed does not change policy, “Merger” of ETH goes unsuccessfully. In such a case, we forecast a price equal to recent lows around $1,000.
Scenario 4: There is a reversal of Fed policy, with the “Merger” failing (ETH network will continue to operate as it does today). In this case, the price of ETH will be $1.6k.
There are all preconditions for these scenarios, but there is no guarantee that it will happen.
At this moment, both futures curves, money markets, and surveys of leading economists are signaling that the key rate hike will peak in December and January, and the start of FED policy easing will begin in March at best.
FED will raise rates in September by 0.75% and the market will refocus its expectations for a peak rate hike in March 2023. In that case, Ethereum could hold in a $1K-$1.7K range closer to a lower line.
Only after that by the end of the year a Merger factor will be triggered. And there will be prospects for the end of the cycle of tightening of monetary policy. And more headlines about Web3 and ETH will start to appear in the media. Then there will be more reasons to realize optimistic scenarios with Ethereum price returning to $3.5k – $5k.
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