One universal characteristic of cryptocurrency is market volatility – there is always a boom and then a recession. But Ethereum’s recession period has extended this year, with its value falling as low as $1,226 from $4,800. As an investor, this trend is alarming, and you may wonder if Ethereum prices could ever go to zero.
Ethereum can never go to zero, but its price could go lower than $500. It would have to be de-listed from all exchanges and outlawed globally for it to drop to zero. This is impossible because some people believe crypto is the future and would still hold it, giving it value, though minimal.
Again, Ethereum’s value extends beyond processing transactions, making it impossible to crash. Let’s explore the possibility of Ethereum dropping to zero in the subsequent sections.
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How Low Can Ethereum Get?
Since 2015, Ethereum has gone through several headwinds and managed to shake them off. At the end of 2020, Ethereum prices stood at $730. In March 2021, they had soared to $4,000. By November 2021, the prices hit $4,800, the highest value Ethereum has ever had.
The trend looked promising to investors, and there were predictions the price would get to $10,000.
Sadly, 2022 has been the deal breaker and has seen Ethereum prices decrease by 75% to around $1,200. Even the anticipated merge in September 2022 has not improved the situation, though investors hoped it’ll boost the prices to $2,000. Opponents of Ethereum have predicted its end though this might not be the case.
According to experts, Ethereum could see another big crush this year, with prices dropping below $1,000. Wendy O, a crypto market analyst, expects Ethereum prices to decrease by 85% from its all-time high, $4800, leaving it at $750.
On the other hand, Kavita Gupta, a venture capitalist, predicts the prices to go as low as $500 if the crypto market sell-off declines.
In a nutshell, Ethereum prices will be more volatile in the near future because of the upgrade to a more energy-intensive version of the merge.
Why Ethereum Will Still Have Value Above Zero
Despite the market turmoil that Ethereum is enduring, it is unlikely it’ll hit the zero mark.
Though we have seen smaller coins drop to zero, a major and well-established cryptocurrency would require a huge industry change to drop this much. Secondly, it would call for the abolishment of Ethereum as a legal currency.
Unless this happens, some investors still believe crypto is the future and will hold it. This will give it a value above zero.
The other thing, unlike Bitcoin, Ethereum has more value beyond processing transactions. Its blockchain is most famous for developing tokens, NFTs, and decentralized apps (DApps). Users pay a fee to mint artwork and use app features, making it more than just a store of value.
For Ethereum to go to zero, all developers who use it would have to disregard it or stop using it. And this is nearly impossible.
What Would Happen if Ethereum Got to Zero?
Sometimes most crypto market predictions are incorrect due to the market’s volatility. So, it is always wise to look at both sides of the outcome so you can be more prepared.
It would be devastating to developers and investors if Ethereum crashed to zero. If you’re an investor, you will lose all the financial holdings you had invested in the coin. And if you had staked Ethereum, you would lose all chances of making a profit.
The crash would also affect crypto validators who receive payment in the form of Ethereum. Their role is to verify crypto transactions to ensure the network’s immutability and transparency. They would not continue securing the blockchain, meaning Ethereum would cease to exist. Also, all Ethereum apps would lose value.
What Is Causing Ethereum’s Persistent Price Decline?
Despite the attempts to design crypto to have an independent value from the stock market, the two are very much related. Over the past years, cryptocurrencies, including Ethereum, have fallen and risen in correlation to the market.
Since the Federal Reserve announced its intentions to use stringent measures to combat inflation, Ethereum prices have decreased steadily. This is because of an increase in interest and discount rates, discouraging investors from borrowing.
The lack of enough money circulating in the economy causes investors to avoid highly volatile investments like Ethereum. As the supply of Ethereum in the market increases, the demand decreases. As a result, investors reduce the price to boost its liquidity.
Because the inflation rate stubbornly remains high, Ethereum prices keep dwindling.
Should You Sell or Buy Ethereum Now the Prices Are Low?
The guiding principle for investors is to buy low and sell high. If you sell your coins when the prices are low, you’ll be locking out your profit which you may never recover.
However, it’s essential to evaluate your risk tolerance. If you hold many Ethereum coins and are afraid of losing all your investment, you should sell up to your risk capital or the amount you can afford to lose.
Again as we’ve said, the crypto market is unpredictable. Holding some coins gives you a safety net should the prices increase.
On the other hand, right now would not be a good time to buy Ethereum. The prices will likely stabilize or decrease further for the rest of 2022 and early 2023. So, you should wait until then to avoid making losses.
What’s the Future of Ethereum?
The merge is the best thing that has happened to Ethereum this year. However, because it makes Ethereum more affordable, it may cause prices to be volatile in the short term. But long term, it’s likely to shift Ethereum prices upwards.
According to Coin Price Forecast, Ethereum prices could hike to around $2,600 in 2023. By 2025, Ethereum’s value could reach $8,000, according to Ian Balina, a crypto researcher.
Conclusion
Due to market volatility, it’s not always easy to accurately estimate the trend of Ethereum prices. But because Ethereum has more than transactional value, it’d be difficult to crash to zero.
However, the prices could be as low as $500 and hopefully rise in the future.
In this article, we have discussed why will Ethereum still have a value above zero and how low can it go from here.
Becoming a millionaire, however, doesn’t happen overnight, unfortunately! It’s always recommended to create a steady flow of income so you can invest in a diversified portfolio, and never invest more than what you cannot afford to lose!
Thanks for going this far! If you found this post inspiring and useful, share it with your friends, please! (Virtual high fives and hugs to all my sharers out there!)
Cheers,
Odeh Ahwal
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