The Ethereum price is showing some promising signs in 2019. It’s going up right now, but how long will this trend continue?
We all know that the prices of all cryptocurrencies are very volatile. Just because the price is going up one moment, doesn’t necessarily mean it will keep on increasing for long.
So how do we know if this rise will push Ethereum all the way back up to its peak? The best way to know is to look deeper than just the price chart. We need to dig into some of the fundamentals that give Ether coins and the Ethereum network its underlying value. That way we can see the long-term trends driving the price of ETH, and whether all-time highs are truly on the horizon.
Long Term Progress
It’s so easy to get caught up in the day-to-day trading activity of Ethereum and forget the progress made by the network as a whole. Ethereum was hit pretty hard by the cryptocurrency bubble and subsequent burst of 2017. But since then, the price of Ethereum has been on a rocky but steady recovery slope. Rising from lows of around $85 at the end of 2018 up to prices of over $200 in 2019. That kind of return is fantastic for any kind of investment apart from cryptocurrency.
The Hype Cycle
One of the key insights of the new technologies is that they follow something called the Hype Cycle. The Hype Cycle observes that new technologies go through a process of invention, over-inflated expectations, followed by a trough of disillusionment, followed by a resurgence (the slope of enlightenment). It’s like a roller coaster that shoots up, then back down again, then steadily rises once more.
We can easily see how this phenomenon is playing out in the cryptocurrency world. Blockchain gained more and more hype up until the crazy out-of-control buying frenzy of 2017. Cryptocurrencies quite possibly had an overly-exaggerated ‘peak of overinflated expectations’ due to their unique ability to be traded frictionlessly by anyone. New, amateur investors weren’t familiar with the concept and didn’t know how to avoid it. They experienced the so-called FOMO (Fear of Missing Out).