Ethereum Price Analysis for 2021
ETH Price Forecast for 2021
We’ll be sharing the top Experts predictions for Ethereum in 2021.
Read our Ethereum ETH Price Analysis in 2021
Despite the economic turmoil caused by COVID-19, 2020 has been an impressive year for Ethereum. The price of the world’s most well-known altcoin has seen steady growth throughout the last 12 months, as the crypto world eagerly awaited the much-anticipated launch of the Ethereum 2.0 upgrade, which finally became a reality in December.
Overall, Etheruem has gained more than 330% since starting 2020 - very impressive given the uninspiring performance of certain other tokens. Naturally, the resilience shown by Ethereum, combined with an exciting new network overhaul has very much brought the altcoin to centre stage heading into 2021 - with some industry figures believing ETH will continue growing at a pace that is relatively steady for the crypto market.
So does this mean that now is a good time to invest in ETH? In the following Ethereum price analysis 2021, we’ll look at how Ethereum 2.0 could see prices continue to rise over the coming year, as well as hear what a few industry experts have to say.
Ethereum - an Overview
Ethereum is easily the most famous digital currency after Bitcoin, so before proceeding with our Ethereum price analysis 2021, it’s worth taking a closer look at what exactly makes the altcoin different from its predecessor.
There are of course many similarities between the two technologies - both Bitcoin and Ethereum were originally based around the proof of work concept, wherein transactions are verified via a network of nodes that compete to solve complex equations - a process known more commonly as ‘mining’.
Similarly, both Bitcoin and Ether employ blockchain technology to make all this possible. However, aside from these basic similarities, Bitcoin and Ethereum are two very different animals.
Launched in July 2015, Ethereum is a decentralised, open-ended software platform that not only plays host to its native crypto token, Ether, but also allows smart contracts and Distributed Applications (ĐApps) to be developed and run without any third-party influence. Ethereum also has its own programming language, which opens up numerous possibilities for developers looking to build and run bespoke applications on the platform. So, whereas both Bitcoin and Ethereum do offer a decentralised payment system, the main purpose of Ethereum is not a digital payment system but a platform to facilitate the exchange of secure contracts and applications, via its own currency.
Ethereum does not have an overall cap on the number of tokens that will eventually be in circulation - unlike Bitcoin. However, it does limit the number of tokens made available from year to year. Another key difference is the speed at which blocks are created. Whereas Bitcoin transactions can take over ten minutes, Ethereum transactions are typically processed in seconds.
Ethereum’s myriad applications and virtually limitless potential have made it an interesting investment prospect and allowed it to quickly gain a foothold in the already competitive cryptocurrency market. But what does all this background information mean for our Ethereum price analysis for 2021?
As we shall see, understanding the key differences between Ethereum and other cryptocurrencies - particularly Bitcoin - is vital if we want to predict how the coin may perform in the year ahead. Whilst all cryptocurrencies will be affected in some way by major movement in Bitcoin’s price, our objective here is to find other ways in which Ethereum’s token price may move.
History of Ethereum Price Movement
Before starting our Ethereum price analysis for 2021, it would be prudent to take a look at the historical price movement of the altcoin. By doing so, we can better identify past trends and predict how certain various market forces may affect ETH’s value moving forward.
As with most cryptocurrency, Ethereum commanded very little by way of an asking price when it first hit the market, with the token being worth less than $1.00 in 2015. Things stayed fairly low-key for the emerging digital currency over the next 18 months or so, with ETC reaching a modest $10.00 by January 2017, However, it was around this time that the limitless potential of this new blockchain technology started to really become known and prices soon took off. Following a major surge towards the end of 2017, ETH hit a record high of almost $1,400 in January 2018. However, the rest of 2018 was something of a rollercoaster for Ethereum and by the end of the year, the price of ETH had sunk as low as $85.
Things remained fairly subdued for well over a year following the highs of early 2018. Ethereum struggled to break $250 over 18 months or so, despite many industry voices continuing to hail Ethereum as the altcoin that would one day unseat Bitcoin for the top spot. Following another bear run in the summer of 2019, ETH finished the year trading at just $132.
Ethereum Price in 2020
Naturally, an important consideration for our Ethereum price analysis for 2021 is how well the coin has performed in more recent months. After a fairly dismal performance throughout 2019, ETH got off to a slow start to 2020. However, investor sentiment seemed to return towards the summer and by July prices had soared past $250 and continued to rise until hitting around $475 in September.
ETH prices then took a tumble back down to around $350 before rallying at the end of the year, peaking at $615 going into December. The end of year surge is likely down to the much-anticipated launch of Ethereum 2.0 and this overhaul is what makes ETH such an important crypto to watch as we move into 2021.
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Ethereum price prediction for 2021
Experts predictions for Ethereum in 2021
In order to form a balanced Ethereum price analysis for 2021, it’s necessary to collate information from several areas. Naturally, looking to the opinions and predictions of leading crypto experts is a good way of gauging industry sentiment towards Bitcoin and the market in general.
1. Craig Russo
Craig Russo, founder of Peer — a Boston-based startup behind SludgeFeed — believes that Ethereum’s capacity for deploying decentralized applications and tokenizing real-world assets will ensure it remains a go-to platform, attracting plenty of investor interest. “I do not see any reason why Ether (ETH) won’t revisit all-time highs by 2021 if Ethereum progresses as it plans, and developers continue to build on the network,” he said, adding: “I believe ETH/BTC has perhaps already bottomed and ETH/USD will begin a new uptrend once Bitcoin’s volatility slows down,”
2. Alex Saunders
Meanwhile, Nugget’s News CEO Alex Saunders is also very optimistic about the potential of Ethereum and is another voice predicting a strong possibility that ETH will hit a new, all-time high in a year or less - forecasting $1,400 by the end of 2021.
3. Michaël van de Poppe
Cointelegraph Markets analyst Michaël van de Poppe is also anticipating an ETH next bull run and believes the future is likely bright for the altcoin, with the next surge in value likely to peak above the previous record. Whilst he stopped short of offering a full Ethereum price analysis for 2021, he took to Twitter to predict that the “next cycle ATH for ETH probably between $10,000–20,000.”
A crypto trader and analyst known as SalsaTekile, who gained notoriety after turning a couple of thousand dollars into $100,000 in a summer trading competition, has expressed confidence in Ethereum, adding it to his portfolio as he believes it will outperform Bitcoin in 2021. “I own an uncomfortable amount of ETH (spot). Bought more again today, with the trading gains. I think it will outperform bitcoin in the coming year,” he tweeted. Whilst he is yet to make an in-depth Ethereum price analysis for 2021, SalsaTekile adding ETH to his portfolio should be taken as a positive sign.
5. Ryan Selkis
Messari’s Ryan Selkis hadn’t offered an Ethereum price analysis for 2021 at the time of writing, but he has noted his own take on why Ethereum could do well in the year ahead. Writing a report into what can be expected for the cryptocurrency space next year, he said: “Bitcoin may be primed for a big year due to its macro positioning, but it’s Ethereum that has taken flight as crypto’s most important platform...one that could power an entirely new financial system, and a more open, resilient internet.”
Factors Affecting Ethereum Price
1. Ethereum 2.0
Ethereum 2.0 is a major upgrade to the old Ethereum public mainnet, designed to accelerate Ethereum’s usage and address existing performance limitations.
One of the most significant changes is the move away from Proof of Work architecture to the implementation of a Proof of Stake consensus mechanism. The upgrade kicked off at the end of 2020 and Phase 1 of the launch will continue into 2021.
It has been predicted that ETH 2.0 will increase throughput by over 1000x, which will reduce the high fees associated with Ethereum transactions that currently dog the token. Naturally, this development is a key factor in our Ethereum price analysis for 2021 and, if it proves to be a success, it could see prices skyrocket in 2021.
Ethereum, like all Altcoins, is always going to be pegged in some way to Bitcoin. Firstly, Bitcoin is the most well-known and (comparatively) stable cryptocurrency and, as such, analysts often use it as an indicator of investor appetite for digital currency in general. Secondly, many exchanges require the exchange of BTC for other coins, which make Bitcoin something like a crypto reserve currency. Therefore the price of Bitcoin will - for the foreseeable future - reflect the wider cryptocurrency market, to some extent.
3. Regulations related to cryptocurrency
Cryptocurrency and the idea of decentralised payments are relatively new concepts, so many countries are still getting to grips with if and how they should be regulated.
In the UK for example, the FCA has recently prohibited the sale of derivatives and exchange-traded notes (ETNs) that reference certain types of crypto assets to retail consumers. In addition to this, there are also new EU regulations on the horizon - which could have a huge knock-on effect for all cryptocurrency prices. Of course, regulation could be good or bad for the markets, but any savvy crypto investor should keep a close eye on potential changes.
4. Buyer demand
Everyone knows that the value of an asset is dictated by supply and demand. Ethereum has no upper limit in the way that Bitcoin does and this has historically been something of a problem for the altcoin. However, the arrival of Ethereum 2.0 and the move to a Proof of Stake protocol has been predicted to reduce the current inflation rate of 10% to between 0.5 to 2% per year.
On the demand side, 2021 looks to be an interesting year as there has been a surge in interest from traditional investment institutions throughout 2020 and a record number of new cryptocurrency wallets were opened. Naturally, this is of major interest to any Ethereum price analysis for 2021 and could well mean that demand will surge across the crypto sphere over the coming year.
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Ethereum price Analysis for 2021
As we have seen, there are several factors to consider when conducting an Ethereum price analysis for 2021. Of course, aside from assessing the different market forces detailed above, crypto analysts also try to identify patterns and predict price movements by conducting technical analysis of how charts have moved previously.
BeinCrypto.com, for example, analysed the highs and lows in the history of Ethereum’s price and used this to generate a forecast for 2021 - resulting in another optimistic prediction of a bull run that will see ETH price in 2021 finishes at around $2,800.
With the break above $600 on massive volume, ETH is signaling a new bull market.
When considered alongside the other industry figures quoted as part of this analysis, we can expect the coming year could be extremely positive for Ethereum. Whilst it may not hit the lofty, $10,000-plus figure predicted by some, there is good reason to believe ETH could easily soar past $1,000 by the end of 2021.
Should you invest in Ethereum in 2021?
As we have seen, there is a chorus of optimism with regards to ETH’s potential. However, whilst our Ethereum price analysis for 2021 certainly points to good things for the altcoin, especially as Ethereum 2.0 gathers pace, it’s worth noting that there are quite a few cryptocurrency platforms and authorities that believe the positive effects will take a little longer to manifest.
TradingBeasts.com, for example, whilst optimistic about Ethereum’s future, predicts a more subdued growth rate, with ETH not creeping above $600 until the end of 2021 and only approaching the $1000 mark by the end of 2023. If you are considering investing in Ethereum, it is essential to manage your expectations and not get carried away with media hype.
It’s also worth remembering that many of the more optimistic Ethereum price predictions are reliant upon Ethereum 2.0 solving the issues it is intended to. Anyone planning to add ETH to their investment portfolio will need to make sure they keep abreast of any developments in this respect - positive or negative - and adjust their investment strategy accordingly.
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Ethereum has had something of a shaky year in 2020. Not only did the COVID-19 pandemic throw the financial world into chaos, but the delay of Ethereum 2.0 also fuelled investor uncertainty and saw prices drop. However, as our Ethereum price analysis for 2021 has highlighted, industry sentiment seems to have turned a corner and ETH is expected to perform well over the coming years.
Of course, it’s too early to say how the launch of the Ethereum 2.0 will affect the value of ETH over the next few years, as the upgrade will be staggered in phases. However, assuming the first stage is successful, we could well see Ethereum prices start to rise in the first half of 2021 and continue throughout the year.
The next twelve months have been touted as a major transitionary period for cryptocurrency and our Ethereum price analysis for 2021 shows that the popular altcoin has the necessary technical credentials to be one of the industry’s best investments. If you are interested in adding Ether to your portfolio and are prepared to keep a close eye on developments affecting token price, then the start of 2021 could be a good time to make your investment.
Ethereum price analysis 2021 - FAQ
Will Ethereum go up in 2021?
Whilst our Ethereum price analysis 2021 cannot guarantee how the price of ETH will move in the coming year, there are several industry figures who are confident that the altcoin will prove a good investment.
How will Ethereum 2.0 affect the token’s value?
The launch of Ethereum 2.0 promises to address certain issues with the existing blockchain infrastructure and see Ethereum technology become even more versatile. It’s hard to see how this could have anything but a positive effect on the token price, but investors should keep a close eye on developments, as any issues with the implementation of Ethereum 2.0 could have negative consequences.
What are the experts predicting for Ethereum in 2021?
Most industry voices are positive over Ethereum’s price potential in 2021, although some are predicting much bigger increases than others. There has been a wide consensus that the launch of Ethereum 2.0 will see the price of ETH close in on its previous record of $1,432. Our Ethereum price analysis for 2021 also suggests growth for the altcoin, although investors should be aware that a lot rests on Ethereum 2.0 and any issues with future developments could put the breaks on any bull runs.
Will Ethereum exceed $10,000 in 2021?
Whilst there are some industry figures predicting that the value of ETH will hit five figures, it should be noted that these are very ambitious and most industry voices are offering more conservative forecasts.
Is now a good time to invest in Ethereum?
With Ethereum 2.0 finally becoming a reality at the end of 2020 and further developments in the pipeline, ETH is expected to perform well over the coming year and many reputable crypto investors have been adding the token to their portfolios ahead of what could be record growth.
Where can I buy Ethereum?
If you are looking to invest in Ethereum then you’ll need to find a broker or exchange that will allow you to buy the asset. There are numerous providers available but you’ll want to find one that has a solid reputation and meets certain financial regulations. We recommend eToro for novice traders, as it offers a simple to use interface as well as plenty of information on the cryptocurrency markets. You’ll also need a crypto wallet to store your tokens.