What is Ethereum?
Ethereum started with the same consensus mechanism as Bitcoin, proof-of-work. Due to the lack of energy efficiency of this algorithm, Ethereum initiated its switch to a more environmentally friendly consensus room algorithm, Proof of Stake. At Ethereum, this new protocol is called Casper. Unlike Bitcoin, Ethereum has a Turing-complete virtual machine. This engine can be used to build powerful decentralized applications, better known as smart contracts. These programs are written down on the blockchain with transactions. Users should then be able to access the functions of these applications via transactions. With this, the conditions of the application can be changed depending on the logic and the situation.
There are two sides to the Ethereum crash: weak fundamentals coupled with even worse data from a technical analysis perspective.
Technical Analysis : In a previous article, we warned that Ethereum price was very unstable at the time. The downtrend formation since November 2021 has weakened purchasing power. This sent the price into a downward spiral. It then hit a strong support level ($2,800) but broke back down due to the poor overall crypto market sentiment.
Ethereum price forecast
Fundamentals : This affected not only Ethereum but the entire crypto market. Without exception, all coins or tokens crashed in the past month. Several reasons can be held responsible for this crash
Will Ethereum Reach $0?
Ethereum price managed to briefly break the strong $1,800 support before reaching the current price of $1,950. This is definitely bad news as price needs to stay higher than this level to sustain. If the crypto market manages to recover soon, at least the ether price could also recover towards $2,200 to $2,400.
On the other hand, if the crypto market continues to crash, Ethereum price can be expected to fall back below $1,800 and possibly even reach the next support at $900. Reaching $0 anytime soon is not very likely for a number of reasons:
The DeFi industry already exists and is continuously establishing itself
The crypto gambling industry is also present and the number of players is increasing monthly
The NFT sector is also still around and has daily turnovers regardless of what is happening in the crypto market
The technology behind Ethereum is set to improve in the coming months
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