To say that last year was a difficult one for the cryptocurrency industry would be an understatement, as the entire market lost roughly 64% of its value in 2022. Things were little different for Ethereum (CRYPTO: ETH), and the popular digital asset dropped 68% during the year. Investors are wondering if things will turn around in 2023. 

Based on Ethereum's recent price of about $1,265, a $2,500 price target implies roughly a 100% gain for the world's second-most valuable cryptocurrency by year's end. Let's consider if this is even a likely scenario. 

Last year saw a major upgrade to Ethereum's network. Known as The Merge, Ethereum transitioned from the energy-intensive proof-of-work system, something naysayers hate about Bitcoin, to a proof-of-stake (PoS) mechanism. Supporters have long waited for this event because the result is a blockchain network that is much more sustainable and energy efficient. 

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Source Fool.com