There’s a lot of fear, uncertainty and doubt being sown throughout the crypto market today. China’s newest crypto regulations are clamping down harder than ever before, and the entire asset class is being dragged down as a result. One of the hardest hit is the number-two crypto, Ethereum (CCC:ETH-USD). The country’s bans on crypto trading is hitting Ethereum even harder than flagship crypto play Bitcoin (CCC:BTC-USD). With the Ethereum network suffering such a devastating blow, investors are looking into Ethereum price predictions to see what its future looks like.
The Chinese Communist Party (CCP) dished out its most far-reaching regulations thus far this morning. The country is fully banning the transaction of cryptocurrencies. After spending much of the year squashing out crypto mining operations, this isn’t necessarily a huge surprise. In the past, they’ve also outlawed initial coin offerings (ICOs), as well as institutional crypto investing. Still, the regulation cuts off a significant portion of the crypto investor pool from the rest of the world.
The announcement of this crackdown also comes with a vow from Chinese government entities to diligently clamp down on illegal mining and trading activity, showing that they aren’t dealing out a symbolic regulation. As such, the asset class has been on a downturn throughout the day. Bitcoin is losing 6% well into the afternoon, and Ethereum has been dipping over 8% as a result of the news. It is once again dipping below the $3,000 mark, trading at just over $2,900 this afternoon.
Where Are Ethereum Price Predictions Heading With New Regulations?
Even with these sweeping bans, Ethereum isn’t going to just fall off the face of the earth. The network is far too large to be permanently affected by the news. However, it does change the trajectory of the coin’s gains. Analysts have taken notice of what’s happening today, and many are dialing back their expectations for Ethereum going into the end of the year.
Let’s take a look at some Ethereum price predictions to see what new expectations are being set for the crypto:
- CoinPriceForecast is predicting a year-end price of $3,380 for ETH.
- The Economy Forecast Agency thinks Ethereum will near $4,000 before 2022 but that it will fail to cross the threshold. The outlet’s high price point for Ethereum rests at $3,906.
- DigitalCoin thinks Ethereum can finish out the last quarter of the year at just over $4,000. The site predicts a price of $4,059.
- WalletInvestor predicts that in a year, ETH will be close to its old high, but still a ways from breaking it. Its September 2022 prediction for Ethereum is $5,581.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.