In May 2022, the cryptocurrency market underwent a significant crash. The demise of the Terra/Luna network dragged down the entire market with it, initiating selloffs and previously-unseen pressure on investors.
Not a single cryptocurrency was spared in this crash, Ethereum included. However, while investors hoped to see ETH hold a bit better in such a downturn, the #1 smart contract platform lost nearly 80% of its value and plunged under the $1,000 mark for a brief period.
So you might be asking yourself — is it a good time to sell ETH and get rid of it for good? Should you convert ETH to USDT now and shield yourself from the volatility? In this article, we will try to answer these questions and provide a plausible price prediction for Ethereum in the upcoming months and years.
Let’s Take a Closer Look at ETH and USDT Coins
Before we provide you with some predictions for ETH and USDT, let’s first take a look at their fundamentals.
Tether is a stablecoin that is pegged to the US dollar. In this regard, the value of 1 USDT is (or should be) always equal to 1 USD. This is made possible by the fact that each USDT issued is backed by USD dollar (or equivalent) reserves. Crypto investors use stablecoins like Tether as an accessible on-and-off ramp into the ecosystem as they allow you to avoid the high cost of crypto-to-fiat conversions.
However, the Tether cryptocurrency has been surrounded by a bit of controversy for as long as we can remember. Many believe that their reserves do not hold sufficient value to back all the Tether that has been issued. Consequently, naysayers often use the possible de-pegging of USDT as a doomsday scenario that could destroy the entire crypto market.
What’s New About Ethereum
Even though Ethereum is experiencing an unfortunate price crash, the project is still very healthy from a fundamental standpoint. Ethereum leads the entire blockchain space regarding the number of developers working on its platform.
Moreover, the network is about to undergo a significant upgrade towards a proof-of-stake consensus mechanism in August 2022. This will allow Ethereum developers to benefit from a much more scalable network, with faster throughput, cheaper transactions, and a smaller carbon footprint. Once fully on PoS, the network will consume 99% less power than it does now.
These upcoming upgrades will have a huge impact on ETH price, and most experts agree that this could provide some strong upwards momentum for the project.
What Is the Market Rating of Ethereum and Tether in 2022?
So, what’s the bottom line here? Are investors compelled to exchange Ethereum for Tether like they were just a short while ago for BTC to USDT? Let’s have a look at some opinions from reliable sources on the internet to answer this question.
USDT Profit Review
Tether is a stablecoin, so its price shouldn’t be moving anywhere from its current peg of 1 USD. The micro-variations of the USDT price can be useful for profits if you are dealing with a huge portfolio in 6+ figures. So, unless you are planning to provide liquidity with your USDT on a decentralized exchange, you won’t be making any profits by selling it for fiat.
ETH Profit Review
Ethereum recently reached a two-year low when it hit $897 per token. This drop from its all-time high of $4,800 only shows that Ethereum is currently very undervalued. Here’s what analysts think about the upcoming price changes for ETH:
- Digitalcoinprice.com is optimistic regarding Ethereum’s price in both the short and long-term forecasts. For 2023, they expect it to reach $2,000, whereas, for 2025, a target of $2,600 seems more plausible for the prediction website.
- Priceptrediction.net, on the other hand, is much more enthusiastic. They expect ETH to reach over $4,000 in 2023 and register new all-time highs in 2025 — $8,984 per ETH.
All in all, experts seem to reach a consensus that Ethereum is yet to show some considerable growth.
Is Now the Time to Exchange ETH to USDT?
Considering that Ethereum is at a low price of around $1,200, it’s not a very good time to sell it for profits. Waiting for the market to stabilize should be the best move currently. Moreover, it might be a good time to start accumulating some ETH for the eventual bullish cycle where experts see its price rising up to 8x its current valuation.
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