The rally of Ethereum has been incredible in the past months and on the face of it, this is a difficult task for any cryptocurrency. Ethereum has already broken through the psychological level of $2,000, and many are wondering if this is sustainable in the long run. While there are many factors that could help Ethereum remain above the $2,000 mark, there is also a risk of it dropping back down to around $1,600.

One factor that could have played a role in Ethereum’s surge is the weakening US dollar since October 2020, which led to a decline in exchange rates between the euro and the dollar. As the dollar weakened, Ethereum has gained momentum and continued to rise, although the dollar’s rally has started to decline since 2021. If the Fed’s plan is to raise rates again, then a stronger US dollar may impact Ethereum’s price, particularly with a lower Euro/Dollar exchange rate.

This could mean that Ethereum may drop back below the $2,000 mark and could fall to around the $1,600 level. However, if the demand for Ethereum remains high, then it is highly likely that it will bounce back and re-enter the $2,000 zone.

Ultimately, it is difficult to know with certainty how Ethereum will develop given the many factors that can play a role. Nevertheless, one thing is for certain: its recovery from the 2021 lows of $1,200 has been remarkable. If Ethereum is able to sustain its current levels or even higher, then it could be an enormously profitable investment for those looking to capitalize on its potential.



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