Ethereum has been on a downtrend ever since reaching its all-time high price of $4,850 back in November 2021. In fact, most cryptocurrencies reached their all-time high prices during that same period. However, prices started to dump right after. The month of October has been known to be a green month for cryptocurrencies. Will Ether price increase in October 2022? Let’s assess in this Ethereum price prediction article.
Ethereum Price on a Steady Downtrend?
In figure 1 below, we can clearly see how Ether prices started to crash in November 2022. A descending triangle recently formed with the 2 support prices of $1,250 and $1,000. However, other important price areas showed along the downtrend which is the $2,500 and $2,000 price marks. Those prices would be the clear targets for Ether once the trend goes back to being bullish.
Why is Ethereum Down?
Well, the short answer would be that the entire crypto market is down. Most cryptocurrencies are still following the general trend of the market, specifically Bitcoin. The latter still has a significant 40% dominance over the cryptocurrency market. Now the second natural question poses: Why is the crypto market down?
There are many reasons why the market is currently down. Heck, even the equity market is down. If you check out Facebook’s price in the last year, you would see that FB shares are down by more than 65%. Ethereum is down by around 70% in the past year, mostly due to the following macro reasons:
- The crypto market was due to an adjustment after a strong bullrun that lasted 2 years
- Inflation is at an all-time high in many countries, which makes investors get away from risky investments
- The war in Ukraine is creating a lot of tension in the EU region, which also reduces risk appetites, especially in volatile and risky investment vehicles
Will Ether Price INCREASE in October 2022?
In figure 2 below, we show the monthly returns in the cryptocurrency market by month. The month of October is looking good for the crypto market, especially since the previous months of that same year were not positive. If October turns out to be a positive month, Ethereum price is set for a good comeback, especially post its Merge.
Ethereum Price Prediction – Where will Ethereum price reach in October 2022?
If October turns out bullish for the crypto market, Ethereum is set to break the descending triangle higher. This means that the next target for Ethereum are as follows:
- First target: $1,600
- Second target: $1,800
- Third target: $2,000
- Fourth target: $2,500
The third and fourth targets are not expected to be reached anytime before the year 2023. However, the first two targets should be attainable. Of course, this all depends on the general sentiment in the crypto market and how the macro economical situation develops. If cryptos continue to crash, Ethereum price is set to break the lower descending triangle delimited by a price of $1,000 and reach $800 before 2023.
You might also like