Ethereum's price rose 0.34% over the past hour to $1,604.48, providing some relief to investors after a period of decline. With a market capitalization of $192.67 billion, Ethereum remains the second largest cryptocurrency behind Bitcoin. Here are the key insights traders need to know from the latest Ethereum price and volume data.
Over the past 24 hours, Ethereum's trading volume reached $3.12 billion. This level of activity shows there is still significant interest in trading Ethereum among crypto investors. However, the 24-hour volume is down from its 30-day average of $3.57 billion, indicating some traders may be waiting on the sidelines for more confirmation of a trend change before jumping back in.
Zooming out to a wider timeframe, Ethereum's price remains in a clear downtrend over the past month and six months. ETH has dropped -13.21% and -4.56% over the past 30 days and six months respectively. Some of the selling pressure has been driven by broad macroeconomic concerns such as rising interest rates. However, Ethereum's underperformance versus Bitcoin also suggests there are issues specific to Ethereum contributing to its decline.
The much-anticipated Merge upgrade from proof-of-work to proof-of-stake was completed in September. However, the network upgrade did not provide the bullish boost some investors were expecting. Questions remain about Ethereum's ability to scale and retain its first-mover advantage as competition emerges from blockchains like Solana, Cardano and Polkadot.
Will Ethereum Bounce Back or Continue Lower?
Ethereum's price action remains stuck below its key 21-week exponential moving average, which rejected the bounce attempt in August. This is a bearish signal that indicates the path of least resistance remains to the downside.
However, the recent bounce off the $1,300 price level shows investors are ready to buy Ethereum around key support zones. If Ethereum can break through resistance at $1,900, it could signal a trend change with recovery ahead. But a rejection and move below $1,300 would open the door to further declines.
To turn bullish in the medium-term, traders want to see Ethereum regain its momentum versus Bitcoin. The ETH/BTC pair is trading below its 200-day moving average after failing to hold the 0.077 level as support. Reclaiming this level would show capital is rotating back into Ethereum versus other crypto assets.
What's the Outlook for Ethereum Over the Next Year?
Looking ahead, Ethereum is likely to remain stuck in a wide trading range over the next 6 to 12 months. The data shows there is significant uncertainty among crypto investors right now regarding Ethereum's future.
On the bullish side, the completion of the Merge paves the way for future scalability upgrades like sharding. This May reignite interest among developers and institutional investors. The upcoming Shanghai upgrade in early 2023 aims to lower transaction fees, improving usability.
However, severe macro headwinds remain, including the possibility of a recession in 2023. Risk assets like cryptocurrencies are vulnerable to selling pressure if economic growth continues to slow. There's also regulatory uncertainty, with potential restrictions on crypto mining and trading being discussed.
Overall, traders should expect considerable volatility in Ethereum over the next year within a range of $800 to $2,800. Periods of sharp drawdowns remain likely in the current macro environment. But long-term holders may see upside if Ethereum can outpace rivals and cement itself as the dominant smart contract platform.
How Can I Start Trading Ethereum Today?
Trading Ethereum doesn't require deep technical knowledge of blockchain technology. Even beginner traders can get started buying, selling and tracking Ethereum's price movement.
The first step is choosing a regulated crypto exchange or brokerage to open an account. Leading options include Coinbase, Gemini, Kraken and Binance. These platforms allow linking a bank account to deposit funds and withdraw profits.
Once funded, traders can buy and sell ETH instantly with low fees. Useful features include price alerts, charting tools, educational resources and mobile apps. Always use strong security like two-factor authentication to protect accounts.
It's wise to start small with a trading budget one can afford to lose as crypto prices are highly volatile. Dollar cost averaging by making regular small buys is a proven long-term strategy. Actively trading Ethereum requires closely tracking newsflow, technical levels and volatility.
How Can I Get Passive Ethereum Exposure Without Direct Buying?
Beyond direct Ethereum purchases, investors have alternatives to gain price exposure without managing crypto wallets and private keys.
One easy method is investing in the Grayscale Ethereum Trust (ETHE). This fund holds Ethereum on behalf of shareholders, allowing buying and selling through brokerage accounts like stocks. The premium/discount to net asset value can fluctuate but provides simple exposure.
Publicly traded companies with Ethereum exposure include Coinbase, MicroStrategy and Tesla. While less direct, stocks often trade as a proxy for investor sentiment on crypto. Investing in blockchain ETFs like BLOK also provides basket exposure.
Futures, CFDs and options can gain upside/downside exposure without buying the underlying Ethereum. Margin requirement and expiration dates require active risk management. While advanced, derivatives allow sophisticated traders to implement trading strategies.
Ethereum's 0.34% price bounce brings some relief after its recent downtrend. But considerable uncertainty remains regarding factors like scaling, regulation and macro conditions. Traders should expect continued volatility within a wide $800 to $2,800 range over the next year. Both short-term speculators and long-term investors can gain exposure through regulated exchanges, trusts, stocks, ETFs and derivatives based on their strategy. Ethereum maintains upside potential, but thorough research and prudent risk management remain vital.