Following its biggest rally in a bear market, ETH’s price may have bottomed out in January. After reaching a three-week high on February 9, the cost of Ethereum’s native token, Ether (ETH), has dropped back to revisit $3,000 support levels. The price of Ether has experienced its eighth 50 percent drop in history. In less than three weeks, the ETH/USD pair regained half of its losses, climbing from a low of $2,150 to a high of $3,234. It was Ether’s quickest rebound from a bearish cycle to date, compared to its average of 165 days.

Ethereum’s price has reached $2,673 today, February 2, which is up 22% since the last crash. Bitcoin has only increased by 10%.

January’s slump resulted from several factors, including the concern over the easing of US monetary policy. Many believe that this has slowed down cryptocurrency adoption for now.

Concerns over a crypto ban receded when the Russian central bank proposed regulations for crypto use. Russia has always been at the forefront of innovation and currently sits as one of the world’s largest cryptocurrency hubs. Nationally, 12% of the population is already invested in cryptocurrency, and there are more mining farms than in any other country.

So, what is the Ethereum coin price outlook for 2022?

Is this a short-term bounce? Or is there real potential for the coin to climb back to its old highs?

The Arrow Glacier network upgrade will go into effect on December 8. It will delay the “difficulty bomb,” an increase in mining, until June 2022 as the blockchain transitions from proof-of-work (PoW) mining to PoS. Proof of work is a blockchain. Proof-of-Stake (PoS) such as Casper aims to replace the current Proof-of-Work by verifying block transactions and mining new coins. Unlike PoW, you’ll use less computing power and energy with PoS.

“The Ethereum clients’ team wanted to avoid having to organize another pushback while working on the next big upgrade,” according to the Ethereum Cat Herders development blog.