Bitcoin has somewhat hogged the limelight recently, with its record-breaking price run that saw it break the $60,000 barrier, but Ethereum also experienced significant gains in the opening months of 2021 and with another major update on the horizon, the world’s second most famous cryptocurrency looks to have a very bright future in the coming years.
As the remarkable bullishness of January, February and March fades away, cryptocurrency investors are once again turning to key fundamentals to plan their future investments - and this is one area in which Ethereum is arguably the market leader, especially as attention starts to turn back towards decentralised apps and the potential of smart contracts.
There has already been plenty of noise surrounding the Ethereum 2.0 upgrade and the altcoins shift from a proof-of-work to proof-of-stake consensus mechanism, which are predicted to solidify its position as the top second-generation cryptocurrency and stave off future threats from other up-and-coming altcoins, such as Cardano or EOS.
In fact, at the time of writing, Ethereum was already being tipped for an almost 150% value increase over the course of the next 30 days.
All this surely makes it a good call to invest in Ethereum for the long haul, right? In the following Ethereum price prediction, we’ll take a look at what’s expected of ETH in the coming years and how experts see the Ethereum 2.0 affecting its position in the wider crypto market.
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Ethereum - A Quick Recap
Ethereum was developed by Vitalik Buterin and went live in 2015, signalling a new breed of second-generation cryptocurrencies. Whereas Bitcoin and other first-gen cryptos were limited to being token exchanged, Ethereum offered a whole new digital ecosystem with almost limitless potential.
Of course, you don’t need to be familiar with all of the technical features to invest in Ethereum, but understanding the basics is key to grasping what has made Ethereum the second-biggest cryptocurrency in the world.
One major feature of Ethereum is its programmability. On top of hosting its native token, Ether, the Ethereum blockchain can also be used as a platform for smart contracts, digital apps, games and more. In fact, the Ethereum network is home to several other DeFi tokens.
Looking at Ethereum’s Recent Price Performance
Ethereum experienced two major surges in value during its first few years of existence. First, in 2017 ETH went from trading at around $10 per token to hitting $373.62. Then, going into 2018 Ethereum surged again, reaching over $1,200 in January. However, this proved to be somewhat shortlived and things then fell apart for ETH as its value tanked to $83 before the end of the year.
Things were pretty unremarkable for ETH throughout 2019 and most of 2020 - until the COVID-19 crisis sent prices crashing once again. However, Ethereum recovered remarkably quickly and was trading at $423 by the summer. Things really took off going into winter of the same year, as ETC suddenly soared as investor optimism hit the crypto market. Prices had hit $741 by the end of December and continued to rise at an exponential rate, finally topping out at a record-breaking $3,400.72 in May 2021.
Naturally, anyone looking to invest in Ethereum will now have their eyes on the $4,000 mark, which will be the next big milestone for the altcoin. As we shall see, many Ethereum price predictions are confident that its really just a case of when, rather than if.
What to Expect from Ethereum 2.0
Any Ethereum price prediction published in recent months will centre upon the launch of Ethereum 2.0 - the eagerly awaited upgrade that promises, amongst other things to improve the transaction speed, scalability, and security of the Ethereum network. Assuming the upgrade is a success, then it stands to reason that Ether is likely to see some significant increases in value.
Given the importance of the Ethereum upgrade, it’s worth taking the time to look at the fundamentals of the upgrade, as it is these that will be the major factors affecting the price of ETH in the coming years. So what is Ethereum 2.0 all about?
Ethereum 2.0 is actually something of an umbrella term for the ongoing upgrade of the network. Development of updated protocols actually started back in 2017, when certain issues were identified with the existing network - mostly relating to transaction volumes, scaling and fees. One of the key updates on the horizon is the move to the proof-of-stake mechanism, which will potentially reduce block creation time significantly.
In addition to the move to Proof-of-Stake, Ethereum 2.0 will also bring in another process: sharding. Sharding is intended to resolve scaling issues in the existing ETH network and will effectively allow the blockchain to be split into smaller pieces, with each piece - or shard - capable of operating as an independent blockchain.
Once the Ethereum 2.0 is complete, these shard chains will be able to each carry out specific processes, such as contract exchange or Dapp hosting, thus freeing up the main network for processing transactions or other functions.
The Ethereum 2.0 upgrade promises to supercharge the existing network and in all likeliness will put ETH well ahead of the competition. However, it should be noted that the upgrade has already experienced delays and anyone planning to invest in Ethereum will need to keep a close eye on how things develop - along with similar upgrades coming to rival platforms.
The Rise Of The So-Called ‘Ethereum killers’
Anyone looking to invest in Ethereum needs to consider altcoins that will potentially compete for market space. Whilst Ethereum continues to be one of the most advanced 2nd generation cryptos, it should be noted that there have been several new arrivals since 2015 purporting to be of a new, third generation. So how might these affect our Ethereum price prediction?
Cardano, Polkadot, and Avalanche are often cited as rivals to Ethereum’s crown as the top blockchain for smart contracts and decentralised apps. Whilst it is true that these altcoins are developer-focused and offer numerous applications, it should be noted that, as of yet, none hold anywhere near the same stability, reputation or market capitalisation of ETH.
Some rivalry is little more than the result of overzealous journalism, as there are key differences in architecture and intent between Ethereum and its so-called rivals. For example, whilst Polkadot is often lauded as an Ethereum killer, it is actually geared more towards users looking to build their own blockchain and/or connect networks together, whereas Ethereum’s central focus is as a platform for deploying smart contracts. As such, the two cryptocurrencies, though similar, are not in direct competition.
Cardano has grown recently, occupying the number four slot according to several prominent exchanges. If there is an ‘Ethereum killer’ to watch, it’s Cardano. However, the altcoin is undergoing its own upgrades so many of its key features are yet to be realised. Only time will tell if it can still rival ETH once Ethereum 2.0 is fully up and running.
What’s next: Ethereum Price Predictions for 2025
Any Ethereum price prediction is subject to numerous factors - some of which we have touched upon above. Inevitably, given the volatility of the cryptocurrency market, any forecasting is little more than speculation and can only ever serve to give you an idea of what an asset’s potential for growth might be.
That being said, one way in which accuracy can be improved is by drawing together several Ethereum price predictions and basing subsequent conclusions on the aggregated forecasts.
Of the more optimistic Ethereum price predictions, Coin Price Forecast has ETH reaching $5,000 by the end of 2021 and continuing to rise at an exponential rate over the next few years, potentially reaching $20,000 by 2025.
Perhaps a more realistic Ethereum price prediction can be found over at TradingBeasts. They have ETH breaking the $4,000 mark at the end of 2021, then continuing to climb at a fairly modest rate, closing 2024 trading at an average price of around $5,780.
Elsewhere, the Economy Forecast Agency’s Ethererum price prediction points to a more eventful future for the altcoin. EFA has Ethereum performing well across 2021, closing the year at $4069 - an increase of over 110% on today’s price. The platform then has ETH peaking at an impressive $4400 in the summer of 2022.
However, contrary to other Ethereum price predictions, the EFA then sees ETH going into a protracted decline, dropping as low as $1050 by April 2024. By 2025, the platform has Ethereum recovering, climbing back up to around $2836 by the middle of the year.
Looking Further Ahead: Ethereum Price Predictions for 2030
The further ahead an Ethereum price prediction looks, the more inaccurate it is likely to become. This is not a reflection of the analytical platform, it is simply that the speed of which the market changes is almost impossible to map out. This is easy enough to see for yourself - simply look at how much blockchain technology has progressed over the last ten years - and how many platforms were able to accurately predict things.
But long-term Ethereum price predictions can be a good way to gauge current market sentiment and get an idea of how leading platforms believe future events - such as the Ethereum 2.0 upgrade - will affect prices.
Coin Price Forecast is overwhelmingly optimistic. They have Ethereum continuing to rise substantially each year between now and 2030, ending up at over $62,000 per token.
Crypto-Rating has gone even further. They have Ethereum potentially topping out at over $100,000 per coin in 2030. Dan Morehead, the CEO of Pantera Capital believes that ETH will reach six figures in 10 years, as does Nigel Green, the founder of deVEre Group, who also predicts that ETH price will hit the $100k mark over the next decade.
A cryptocurrency research firm by the name of Crypto Research Report is calling for Ethereum (ETH) to reach $7,000 by 2025, and $21,000 by 2030.
Read More: What Will Ethereum Be Worth in 2030?
Conclusion: Should You Invest In Ethereum?
Most Ethereum price predictions suggest that the altcoin can expect to see a significant growth over the coming years. Leading analysts vary wildly on their forecasts - but if even the most conservative predictions pan out, anyone who chooses to invest in Ethereum could see decent returns.
The price potential of Ethereum hinges upon the success of the Ethereum 2.0 upgrade. If all goes to plan, it will allow ETH to see off competition from the likes of Cardano and Polkadot and solve scalability issues that have dogged the cryptocurrency since its inception in 2015.
So should you invest in Ethereum? Ultimately, ETH is still the second-biggest cryptocurrency in existence and as such it represents one of the more reliable investments in what is a very unpredictable market. The altcoin has huge potential for growth due to its myriad of applications and, assuming appetite for smart contracts continues to grow, ETH may well prove to be an excellent investment over both the short term and long term.
Where To Invest In Ethereum
With the majority of Ethereum price predictions pointing to significant growth, now could prove to be a good time to invest in ETH. However, if you are new to the market, you might not know exactly how to add Ethereum to your portfolio.
Fortunately, due to its very nature, the cryptocurrency market is highly accessible and all you need to get involved in is an account with a reliable broker. For this, we recommend eToro - one of the leading retail brokers on the market. Here, you’ll not only gain access to the crypto markets, but you’ll also have some of the industry’s leading tools and metrics at your fingertips.
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Should I invest in Ethereum?
If you’re looking to invest in cryptocurrency, then Ethereum is definitely a good option. Second only to Bitcoin, Ethereum arguably boasts the most versatile blockchain infrastructure and as such has a great deal of potential. If you do choose to invest in Ethereum, however, you’ll want to keep an eye on developments surrounding the Ethereum 2.0 upgrade.
What are Ethereum price predictions like for 2025?
Most Ethereum price predictions for 2025 and beyond point to significant growth, but they tend to vary on exactly how much. For example, Coin Price Forecast believes ETH can reach $20,000 by 2025, whilst TradingBeasts has it no higher than $5,782.
Where can I invest in Ethereum?
Thanks to the plethora of brokers and exchanges available online, it’s never been easier to invest in Ethereum. For new investors, eToro is one of the top platforms currently on the market, as it offers the latest trading tools along with plenty of educational resources to help you get started.
Will Ethereum ever overtake Bitcoin?
On paper, Ethereum is a far more advanced cryptocurrency than Bitcoin, as its blockchain can support smart contracts and Dapps - something the original cryptocurrency cannot. However, ETH has a long way to go before rivalling BTC for the top spot.
What will Ethereum be worth in 2030?
In reality, there is no reliable way for making an Ethereum price prediction beyond the immediate future - after all, ten years in the cryptocurrency market is an awfully long time. However, some platforms and analysts have speculated that by 2030, Ethereum could be trading as high as $100,000 per token.