Ethereum Price Prediction - Will ETH Value Rise?
Like most sectors of the economy, the cryptocurrency market had a bumpy ride throughout 2020 due to the coronavirus pandemic. Despite this, Ethereum had a steady uptrend towards the end of 2020 and surged in 2021.
Looking at past Ethereum price predictions, it is easy to see that most experts underestimated the value of Ethereum, especially in 2021. Now, the second-largest cryptocurrency in the world is almost reached the $5,000 mark against many expert predictions.
This unpredictability has left many crypto enthusiasts wondering what the future has in store for Ethereum and, most importantly, if its value will keep rising. We will be underpinning our predictions on past Ethereum price history and what known blockchain capitalists are saying.
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Before that, let’s quickly look at how Ethereum will likely grow by leveraging its uniqueness from other cryptocurrencies.
What is Ethereum and Why is it Unique?
From the onset, Ethereum has billed itself as a unique and different cryptocurrency. But what exactly is it, and what gives it an advantage over the other altcoins? Ethereum is a Decentralized Application (dApp) that also acts as a platform for creating and hosting a host of DeFi tokens.
Ethereum is powered by its native cryptocurrency known as Ether which is the only truly trustless asset on the Ethereum platform. Unlike the other commonplace crypto coins, Ethereum doesn’t just act as a cryptocurrency but also a platform for hosting other cryptocurrencies. According to State of the Dapps, there are now over 3,000 Decentralized Apps hosted on Ethereum.
This is where Ethereum sets itself apart from the other cryptocurrencies. For this reason, it is more likely to grow and increase both its market cap and daily volumes compared to other cryptocurrencies. The fact that most of the DeFi projects on Ethereum are active in the cryptocurrency market means that this coin is more likely to increase its value and attract more investors.
Let’s look at how this innovativeness has affected Ethereum’s price over the years.
Ethereum in 2022: Everything You Should Know
Although Ethereum has had a challenging past, including some legal tussles, it was set for record-breaking trends in 2021. In its early days, Ethereum, which is more of a software platform than a cryptocurrency, used to help applications hosted on its platform undergo ICOs (Initial Coin Offerings).
This is where crypto projects raise initial capital by offering a portion of their coins to investors in exchange for funding. The investors could then exchange their tokens for Ethereum and sell it later. This caused Ethereum price to surge, and soon the ICOs became a fishy way for investors to make quick money by investing in the then young and promising Ethereum.
Financial regulators began to investigate these ICOs, and eventually, most of the apps built on Ethereum failed, leading to a staggering plummet of Ethereum’s price. Despite this, ETH has established its footing again, and many experts believe that it is set for a bright future, especially for investors.
To win back its credibility after the ICOs drama, Ethereum focused on useful and smart technologies that can actually develop the financial market instead of simply making investors rich. These technologies include smart contracts and the development of distributed applications.
Just like Bitcoin, Ethereum capitalizes on blockchain technology instead of centralized computing systems that can regulate or censor your information or products based on their own policies. These centralized systems are vulnerable to hacking and other cyber-attacks. For example, information such as credit card numbers can easily be accessed by hackers on Amazon servers.
Instead of these centralized systems, Ethereum (and many other cryptocurrencies) uses blockchain technology to create a decentralized system that gives users the power to modify their applications and access their personal information. This means that the Ethereum Platform cannot regulate or censor these applications, and no third-parties can access private information.
These Distributed Applications (dApps) have allowed Ethereum to not only thrive as a cryptocurrency but also a system where other developers can create their own financial products.
Ethereum also leverages blockchain technology to validate and secure transactions made through Ether, its native cryptocurrency using what is known as smart contracts.
These are digital contracts that automatically carry out transactions and other actions based on the agreement of two parties. These allow people to conduct reliable and safe transactions without having to manually draft a contract.
For example, an insurance company can use smart contracts to validate customer information and trigger automatic payout if the customer meets their criteria. Therefore, smart contracts make Ethereum an essential application in various financial sectors, such as insurance and investing. The fact that most of the decentralized applications on Ethereum use smart contracts makes it an even bigger player in not only the crypto but also the entire financial market.
Ethereum Price History
With the current surge in price, it is easy to assume that Ethereum has always had a smooth ride. However, looking at the price history, we can see that the crypto has fought its way from a price as low as $1 per token to become the world’s second-largest cryptocurrency.
When it was introduced, Ethereum remained under the $1 mark for most of 2015. It traded below the $15 mark value for most of 2016, then suddenly, the price surged in 2017 and hit $1,200 by January 2018. From there, the price plummeted again to as low as $80 in December 2018.
The price remained low for most of 2019 then started rising again in 2020. Ethereum was trading at $130 in January 2020 and hit $248 in mid-February. When COVID-19 intensified around March, the price dropped again and didn’t peak until September, when its market cap reached $54.4bn with a price of around $483 per token.
From there, Ethereum enjoyed steady growth and surpassed the $700 mark by the end of December 2020. This represented about 420% growth from the previous year. According to reports, Ethereum processed $13.5 billion transactions on its platform, which was a significant rise from the mere $3 billion decentralized exchanges that were processed in 2019.
In November 2021 Ethereum reached its current all-time high of $4,891.70.
This success can be attributed to the rise in demand for decentralized services that are offered by the altcoins hosted on the Ethereum Platform. For this reason, it is expected that the value of Ethereum will rise even further in 2022 and beyond.
Ethereum Price Predictions 2022 – 2023
Looking back, Ethereum has so much in common with Bitcoin in terms of the price pattern. This makes it easier to predict its worth in the next two years. Of course, like with most cryptocurrencies, the predictions widely vary, and only a few come close to being accurate.
According to predictions from Longforecast.com, Ethereum may go as high as $3831 by the end of January 2022. This price may fall by February to $2716. By mid-2022, the price could hit $2618 at the start of August.
Longforecast.com predicts November to be the most promising month, with the price of Ethereum starting at $2006 and going as high as $2490 at the end of this month. However, by December 2022, this price could drop to $2327 but close the month at $2888.
As you can see, there is an undeniable fluctuation probably inspired by Ethereum’s price history and other factors. While the price might stabilize between the $4000-$6000 point for most of 2022, some months could go above the $1000 point.
The December 2022 Ethereum prices might stabilize until the start of January 2023, then close the month at around $3255. This price might then rise to about $5081 at the end of April and continue with the positive growth.
This means that Ethereum could end 2023 at around $7396, according to Longforecast.com. Of course, we might see something lower or even higher than these based on how investors and the financial market, in general, respond to this cryptocurrency.
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Ethereum Price Predictions 2024 – 2025 and Beyond
From 2024, the price of Ethereum might go below the $7000 mark then rise again towards the end of 2024. Given how far ahead this is and the unpredictability surrounding the cryptocurrency market, we might have a very huge disparity between the predictions and what actually happens.
For instance, while Longforecast.com predicts that Ethereum might end 2025 at around $2386, crypto enthusiasts like Brian Schuster believe that Ethereum will be worth about $100,000 by the end of 2025. This kind of disparity erases any possibility of giving a closely accurate prediction.
Nonetheless, we can still try to put a figure on the future value of Ethereum using a combination of factors such as the price history, current trends, adoption rate, and the future outlook of the financial market.
Building on these factors, Longforecast.com predicts that Ethereum might start 2024 at around $8945 The price may go below the $5553 mark only in September, before that trading above $7000 for the whole year, and end the year at $7739.
If Ethereum follows the early Bitcoin fractal, most of these predictions might actually come close to accurate. In this case, predictions such as that of Brian Schuster might be unreasonably bullish but still, a strong indication that Ethereum could give Bitcoin a run for its money in the coming years.
In 2025, Ethereum prices will decline; starting at $7233 and dropping to $7048 by March 2025. ETH will end the year at $2386.
Beyond 2025, Ethereum will likely stabilize between the $8,000 and $12,000 price point for a long time before finally hitting the $4000 mark. This might come later or earlier than we expect, depending on future market trends.
Past Ethereum Price Predictions That Came True
Despite the volatility and unpredictability of the cryptocurrency market, there are actually a few Ethereum price predictions that got it right. This means that predicting market trends, although difficult, is actually possible.
Below are some samples of the predictions that came true:
Andrew Keys, a Direct of Communications at ConsenSys predicted the price of Ethereum would hit $1.15 by 29TH February 2016. His prediction came true a bit early towards the end of January 2016. By the end of February, the price was playing the $6 mark proving Andrew’s theory that the coin was on an uptrend.
Mike Novogratz, a hedge fund manager and founder of Galaxy Digital, predicted that Ethereum would rise by 25% by November 2017. Novogratz prediction did not only come true but also doubled. Instead, Ethereum rose by 50% and went ahead to hit an all-time high of $1400.
As you can see, these are merely predictions to the effect that Ethereum’s price would rise as opposed to falling. Predicting the exact price in a given time is not easy, even for the stock market.
The Future of Ethereum – Why Experts See Strong Future Potential in ETH
If past predictions are anything to go by, predicting the price of Ethereum for the next 2-4 years might not be easy. In most cases, such long-term predictions will most likely turn out to be underestimated or overestimated with only a few bordering accuracies.
Nonetheless, many cryptocurrency pundits have come out to offer their predictions for as far as 2025. One of them is Brian Schuster, the founder of Ark Capital. Brian is confident that Ethereum will clock the $100,000 mark by the end of 2025. The crypto enthusiast also adds that Ethereum could replace gold and other metal commodities due to its innate characteristics and innovativeness.
Crypto Rating predicts that Ethereum will probably hit $11,264.14 by 2025. Considering that their previous predictions fell below the line, Ethereum may surpass this figure in the next five years.
Another notable blockchain publisher, the Crypto Research Report, brings the figure down further by pinning Ethereum’s worth per token at $7,500 by 2025. CRR uses several price prediction models to calculate the probable monetary worth of various cryptocurrencies. Based on these models, CRR predicts that Ethereum will finish 2021 at the $4331 mark.
Simon Dedic, a blockchain investor and Co-founder of Blockfyre, believes that Ethereum will someday be worth $9,000 per token. Although Dedic doesn’t give an exact year, this can be very far in the future, given that he is an enthusiast and an active investor in the cryptocurrency market.
In fact, James Todaro, who is a Managing Partner at Blocktown Capital and a known crypto capitalist shares Mr Dedics’s optimism. Like Dedic, Todaro believes that Ethereum will be worth $9,000 and hit a $1 trillion market cap someday. Todaro’s and Dedic’s confidence in Ethereum stems from the rising demand for DeFi tokens, especially in the coming years.
As you can see, there are widely varying predictions on the monetary worth of Ethereum in the coming years. Understandably, the disparity in predictions springs from the volatility and unpredictability of most cryptocurrencies. There isn’t a standard formula that can be used to calculate the value of Ethereum and get a definite number.
For this reason, we can only rely on past price history, current trends, and instincts to predict the future price. However, there are several reasons why we think the value of Ethereum will likely rise in the future:
The ETH 2.0 upgrade that kicked off last year is set to attract more investors. The upgrade will shift the coin to proof-of-stake from proof-of-work, giving it a headstart over other cryptocurrencies.
The Adoption of Decentralized Finance (DeFi), which is now worth more than $100 billion, will increase Ethereum’s demand and speed up its mainstream adoption.
The low price of Ethereum means that it still has a lot of room for growth. New investors and retail traders are more likely to choose it since it is still cheaper and not as crowded as Bitcoin.
The recent adoption by the CME Group will also significantly boost Ethereum’s value. Just like with Bitcoin, CME will launch features that allow additional institutions to invest in Ethereum and subsequently skyrocket its value.
Conclusion: Is Ethereum a Good Investment in 2022 and Beyond?
Most people would naturally want to know if Ethereum is a good investment right now and whether the value will rise in the future.
Based on the various expert predictions and the past price history, it is clear that the price of Ethereum is on the uptrend. So, while we cannot accurately predict the value of Ethereum in the coming years, there is plenty of evidence to suggest that we will be seeing bigger numbers than we are seeing today.
Ethereum has seen a lot of transformation in the course of 2020, including the introduction of Ethereum 2.0. This is an upgrade from the initial Ethereum 1.0 that mainly focuses on scalability. Ethereum 2.0 uses a technique known as sharding to carry thousands of transactions within seconds. This makes it an even more alluring option for investors this year.
It is undeniable that Ethereum still has a long way to go before coming close to seriously competing with Bitcoin.
So how much will Ethereum (ETH) be worth?
FInancial experts and analysts are both expecting Ethereum value to reach extreme highs. Based on Ethereum Projections from DigitalCoinPrice.com, the coin is expected to rise significantly in the coming years.
The below figures outline some of the potential high and low of Ethereum price predictions 2022-2025:
Put simply, Ethereum is low-risk investment with lots of potential rewards. Keep in mind that cryptocurrency investment is very speculative. Therefore, you need to closely watch the market and only invest when the signs are good.
You should definitely do some research before you consider adding ETH to your portfolio.
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