Ethereum is one of the cryptocurrencies on the radars of most investors, with many others keeping a close eye on its price movements. A few days, the coin was close to returning to its previous opening price.
However, a slight recovery over the last thirty days saw this event fail to unfold. After reclaiming $1,200 a few days back, it held on to it over the last seven. Although there were intense attempts at flipping this key level, low trading volume during this period was the main opposition.
It is worth noting that the largest altcoin opened the year at $3,678. The current price showed that a lot happened over the last 361 days. Let’s go over some key events.
Large Increase in Adoption
The ethereum blockchain and the asset saw an increase in activity and usage, mostly by other cryptocurrencies. The most recent was in a bid to further boost the security of its oracle services, decentralized blockchain oracle network Chainlink has begun staking its native currency, LINK, on Ethereum.
Neon Labs announced the launch date of the eagerly anticipated Ethereum Virtual Machine (EVM) solution that will enable developers of decentralized applications (dApps) to take advantage of Solana’s fundamental features.
Arbitrum introduced a second chain called “Arbitrum Nova” based on AnyTrust Technology. Reddit also promised to improve its blockchain-based Community Points incentives scheme for members using the new chain.
Magic Eden, a marketplace for non-fungible tokens (NFTs) with a focus on the community, expanded its offerings to the Ethereum network. Following downtrends, the Ethereum Name Service (ENS) hit a milestone of over 1.5 million domain names registered.
Global payments startup Circle is launching a new stablecoin called Euro Coin (EUROC) to speed up on-chain transactions and broaden the currency’s usability. Leading self-custodian wallet Phantom, located in Solana, announced that it would develop a multi-chain wallet to enable user interaction on both the Polygon and Ethereum blockchains.
These were some of the adoptions the cryptocurrency had. A look at other fundamentals, we may conclude that 2022 was a good year.
Massive Bullish Fundamentals
One of the biggest news in January was Ethereum whale going shopping. Although he wasn’t stocking up on the asset, the announcement that 600 billion Shib went off the market and the entity behind it was a whale triggered more increases for ETH.
Some months later, ether overtook the Bank of America to become the 23rd largest asset in the world. after a number of delays from the Ethereum developers, co-founder Vitalik Buterin made the first announcement of the long-awaited Ethereum Merge may finally occur in August 2022.
As of July, there were more than 200 million Ethereum wallet addresses, according to information from Etherscan. This milestone came after a series of massive decreases in price. The Chicago Mercantile Exchange (CME) declared that it intended to launch options on Ethereum (ETH) futures trading on September 12.
On September 15, 2022, The Merge, the long-awaited upgrade to the Ethereum network, was finally finished. The Beacon Chain consensus layer and the Ethereum mainnet execution layer were combined during the upgrade.
With a brief over of what transpired over the last 361 days, let’s see how prices reacted to them.
Ethereum Price Performance Differed From its Fundamentals
A look at the daily chart showed that although the coin under consideration had notable bullish fundamentals, they had very little impact on prices. The thrills they brought were short-lived. As a result, ETH submitted to superior sentiment; general market sentiment.
As we noticed with other cryptocurrencies, ethereum saw one or more massive increases or dumps every month. Starting January 21, the largest altcoin opened at $3,000 and ended the intraday session at $2,568. This is a clear indication that it lost more than 14%.
Before this massive drop, it 20% in three days. February came with more highlights. Ether saw notable increases during that 30-day period. For example, on the 4th day, it gained more than 11%. Although this was the biggest surge it had, we also had smaller price hikes.
Toward the end of the 30-day session, it had another 11% increase in 24 hours. The next month was filled with smaller moves between 4%-7% with both the bulls and bears taking turns dominating the market.
We also noticed a repeat of this action in April. However, the moves were mostly downwards. May came with more highlights as the downtrend continued. On May 9, the coin lost 11%. This happened after three days of consistent price decreases, in which it lost more than 15%.
15% drop in value during the next 30-day period sent shivers down the spine of most bullish traders. This drop took place after ETH lost almost 20% in three days. July was relatively calm. However, it lost 9% sometime in the end.
August was another period with so many highlights. It lost more than 12% on the 19th and dipped by more than 10% six days later. We also close losses of 9% and 11% during the first half of September.
November is another month many would love to forget. In two days, ethereum lost more than 30%. As the year comes to an end, let’s go over how ETH performed on a yearly scale.
Ethereum First Red Year
This is the first since 2020 that ETH is closing the year with significant losses. In 2019, it surged to a high but lost it lost all of the accumulated gains toward the end of the period under consideration.
This time, the apex altcoin had a terrible start to the year, as we saw. It lost more than 15% in January, making it one of the most bearish months. Of the timeframe under consideration, November was the most negative.
Over this time, ethereum lost more than 33% of its value and hasn’t shown any real indications of recovery. Only four of the twelve months had a positive outcome. In the end, ETH might end 2022 having lost more than 60% of its value.
