Second, only to Bitcoin, Ethereum or ETH has been the preferred cryptocurrency for NFTs and people trading in the blockchain. It has been proven to be much more efficient than Bitcoin and also is faster.
But its native token ETH had an all-time high in November. Does this mean that it will go way down again? The above $4k price might have looked like a peak in its bull run and a bear run seems to be approaching. The massive selling pressure and the ban in many countries have crashed coins across exchanges. But this is merely a temporary drop.
A weakening relative strength index rating also suggests that prices will fall further. A lot can be said to be because of the authorities’ unclear stance over the coins themselves. Many places have outright banned cryptocurrency while many are looking to adopt it.
So in short due to the main reason for the price drop are
1. Bans in different countries
2. Massive selloffs
3. Weakening RSI
Since there has been an increase in the selloffs during the new bans, the price of the currency has fallen as of late. Combining that with the RSI indicating that there might be a bear run in the future, it is safe to say that the price of Ethereum will keep on decreasing for some time. But as the authorities become more clear on their stance, the selloffs will decrease and the RSI will strengthen further.
So if you have been investing in crypto, it is best to wait and buy on the next dip and hold ETH in your portfolio.