Could Ethereum Go Up in the Next Bull Run?

Ethereum is a popular blockchain technology network, having a digital coin that has established itself as the second-largest cryptocurrency by market cap, immediately after the crypto king, Bitcoin.

Ethereum was launched in 2015 by Vitalik Buterin and represents a decentralized platform that functions with the help of blockchain technology. The native token of the network, ETH, fuels numerous activities within the platform, like executing smart contracts and running decentralized applications (dApps). Ethereum is also very important in the DeFi space, enabling numerous financial instruments like borrowing, lending and trading without relying on a traditional financial institution.

If you are interested in Ethereum, you need to take into account various factors, including the ETH price, volatility and how much you can afford to lose. In this blog post, we will further discuss Ethereum's potential state and if the second-largest digital asset could go up in the next bull run. Keep reading if you want to learn more.

What Pushes the Ethereum Price Down?

While the current trends might look optimistic, it is still important to understand what causes Ethereum to go down. The crypto market, and any other financial markets, experienced a downturn in 2022 due to various key features, including:

• The collapse of critical crypto institutions: The bankruptcy of a leading crypto exchange, FTX, caused widespread panic in the crypto space and shook investor confidence.

• Global economic downturn: Inflation and rising interest rates reduced the desire of people to invest in digital currencies.

• Concerns about Ethereum's scalability: Ethereum experienced some scalability issues, which led to slow transaction processing times and high transaction fees.

• Increased regulatory scrutiny: The uncertainty surrounding cryptocurrencies made sense of unease among traders and investors.

What Factors Could Impact Ethereum Price in the Next Bull Run?

Predicting the next bull run is quite challenging, although many experts believe it is on the horizon and Ethereum will have substantial benefits thanks to it. Here are some factors that could impact the price of ETH to go up.

Direct Price Increase

 If we look at past events, the bull runs have led to a significant price surge in the crypto market, including Ethereum. The mix of high investor confidence, increased market demand and heightened media attention can propel Ethereum's price to a higher path. Market experts predict that the price could reach a potential peak of $8,000 by 2026.

Booming dApp and DeFi Ecosystem

Ethereum's dApps and DeFi ecosystem is thriving, but a bull run could increase its exponential growth even more. This increase will directly translate into a bigger demand for the digital coin, automatically pushing its price upwards. Furthermore, innovation use cases and new projects are expected to attract more capital and users to the Ethereum platform.

Enhanced Trading Volume and Liquidity

Bull runs lead to higher liquidity and increased trading activity in the market. This can translate to selling and buying crypto easier or creating favorable conditions to benefit from short-term price movement and opportunistic trading.

Institutional Investment

When the market experiences a bull run, institutional investors usually tend to give a part of their portfolios to digital currencies, as they see the potential for high returns. And if Ethereum catches the attention of institutional capital it will drive its price upwards and solidify its position as a leading cryptocurrency.

Investment Strategies

When investing in crypto, you must remember numerous strategies to help you better manage your investments. Here are some of them:

Choose the Right Storage

When deciding to invest in crypto, you must opt for safe storage. Luckily, there are many ways to keep your cryptocurrency secure, as you can choose either a hot or cold storage option. A hot crypto wallet is an online alternative, while a cold one is an offline one not connected to the internet. Experts say it is better to keep most of your digital assets in a cold wallet to prevent hackers from accessing your funds. But keeping a small part of your digital assets in hot wallets is also good for doing transactions quicker.

Prioritize Liquidity

Liquidity is essential when you choose to invest in the crypto market. Usually, it is better to opt for those digital assets with high liquidity, like Bitcoin and Ethereum. Liquidity refers to how easily cryptocurrency can be converted into cash while still keeping its value. Liquidity is vital as it can give traders a better idea of when they can enter or exit a trade at a wanted value.

Harness Volatility

Digital coins are known for their rallies but also their massive drops. While volatility could be a positive feature for those traders who want to benefit from price swings, for those interested in long-term investment, volatility is quite difficult to manage. So, before you consider investing in crypto, you need to know your tolerance to volatility.

Invest Only the Amount you Can Afford to Lose

Like any other form of investing, putting only the amount you can afford to lose in crypto is crucial. So, if you can't withstand the potential loss of your investment, that means you are not quite ready to invest in cryptocurrency. Determining risk tolerance comes down to the amount you earn each month and what is your risk profile.

Diversify your Portfolio

You probably know that putting all your eggs in one basket is not good, and that idea is also available in the crypto space. So, if you want to minimize risks, having a diversified portfolio and investing in numerous digital coins will be better.

Last words

Ethereum is a dynamic and complex ecosystem that has attracted the attention of plenty of investors over the years. If you want to invest in the second-largest digital coin, you need to know that numerous factors can influence its price. However, its potential for future growth, ongoing development and strong fundamentals suggest further growth for Ethereum in the next bull run.

Disclaimer: This article is for informational purposes only and does not constitute a recommendation or investment advice. You should not construe any such information or other material as legal, tax, investment, trading, financial, or other advice. Please seek a professional financial advisor before making any investment decision. We are not responsible for and do not endorse or accept any responsibility for the availability, contents, products, services or use of any third party website as stated in our privacy policy.