How much is Ethereum worth and is it profitable to buy it now? – Traders Union knows the answer
Cryptocurrencies have become a popular investment option for many, with Ethereum being one of the leading digital currencies on the market. Ethereum has been around for many years and is still in high demand among investors. As people continue to search for profitable investment opportunities, the question of how much is Ethereum worth and whether it is profitable to buy it now arises. Traders Union provides valuable insights into the factors affecting Ethereum’s price, the current market trends, and their perspective on whether Ethereum is a good investment option.
Understanding Ethereum Worth
Ethereum is a decentralized blockchain platform that enables developers to create and deploy decentralized applications (dApps). Ethereum worth is determined by the market demand and supply. Similar to other cryptocurrencies, Ethereum’s price is highly volatile and can fluctuate in a matter of minutes. The market capitalization of Ethereum currently stands at over $200 billion, making it the second-largest cryptocurrency after Bitcoin.
According to Traders Union experts, there are three main factors that affect the Ethereum price:
1. Market Sentiment
Market sentiment – one of the most important signals when determining Ethereum’s price. Positive news and developments in the Ethereum ecosystem, such as the launch of Ethereum 2.0, can lead to an increase in demand for Ethereum, driving up its price. Conversely, negative news and market uncertainty can lead to a decrease in demand, resulting in a drop in its worth.
2. Adoption
The more individuals, businesses, and institutions adopt Ethereum, the higher its worth will be. As more people adopt Ethereum for various use cases, including the creation of dApps and smart contracts, the demand for the currency increases, driving up its price.
3. Competition
Ethereum has had strong competition for the last several years. Such blockchain platforms as Polkadot and Solana offer the same flexibility, while charging less gas fee. The competition can impact Ethereum’s worth, with investors shifting their focus to alternative platforms that offer better features and scalability.
Factors That Affect Ethereum’s Price
Ethereum’s price is influenced by several factors, including the following:
1. Supply and Demand
The law of supply and demand is one of the fundamental factors affecting Ethereum’s price. When the demand for Ethereum exceeds its supply, its price increases, and vice versa.
2. Bitcoin’s Performance
Bitcoin’s performance can also affect Ethereum’s worth. Since Bitcoin is the leading cryptocurrency, a positive or negative performance can impact Ethereum’s demand and price.
3. Network Congestion
Ethereum’s network congestion can also affect its price. When the network is congested, transaction fees increase, leading to a decrease in demand for Ethereum.
Traders Union Perspective on Ethereum
Traders Union is a leading international organization that provides financial and investment advice to individuals and organizations. According to TU experts, Ethereum is a promising investment option, with the potential for significant growth in the future.
Research shows that Ethereum’s adoption by businesses and institutions is on the rise, which is likely to increase its demand and price. Additionally, the launch of Ethereum 2.0 is expected to solve the network congestion issues, making the platform more efficient and scalable.
Analysts expect a bullish market in the near 6 months. Still Ethereum price did not break the structure on the weekly chart to be bullish, like it happened with Bitcoin.
Important News from Forex
EUR GBP Forecast
Traders Union reported the ongoing drop of EUR compared to GBP. According to EUR GBP forecast, EUR will continue the downtrend move till it reaches the order block on the weekly chart located at 0.865, check the image below.
Traders Union experts expect the price to change the direction due to the following reasons:
- This is a Discount zone for the last price action.
- Fibonacci retracement level 78.6% signals a perfect spot for Buy positions at 0.865
- Strong order block signals high support zone for the Buyers.
Keep in mind, there is hidden bullish divergence on RSI right now, so the price might go up without making it to the discount zone.
EUR USD Forecast
EUR USD pair is not that optimistic. Current price action gives an idea of price drop in the nearest day, where a lot of compression gathered by now. The price might target January 2023 lowest point on the chart, which is 1.0482. With a strong swing buyers may start taking the lead again. Of course, the drop will not happen in the nearest days with a single bar. But it is still a good idea to keep the general plan in mind, when picking your daily trades. Trading against the trend is a bad idea. Lastly, every trader wants to keep an eye on the world’s news these days. Some of the big players in the banking industry are at risk of default. Any awkward news can significantly move the needles on Forex markets as well as cryptocurrencies.
Conclusion
In conclusion, Ethereum is a promising investment option for long-term investors who are willing to take on the risks that come with investing in cryptocurrencies. Ethereum’s worth is influenced by several factors, including market sentiment, adoption, and competition. Investors should consider the current market trends, personal investment goals, and risk appetite before investing into crypto. Ethereum is likely to experience a bullish trend in the coming months, making it a potentially profitable investment option.
Investors should conduct their research and consult with a financial advisor before investing in Ethereum or any other cryptocurrency.
