What's the Future of Ethereum?
Ethereum (ETH) is the second-largest cryptocurrency according to market cap, pipped to the top only by Bitcoin.
Ether is the crypto built on top of the open-source Ethereum blockchain that runs smart contracts. Bitcoin is capped at 21 million coins, but there is no such cap for Ether, and many decentralised applications are now based on Ethereum.
Ethereum has dominated crypto news for most of 2021 as it continued the transition to proof-of-stake (PoS) protocol. Opening up staking options has further increased popularity for Ethereum, which already has a loyal fan base.
Since the inception of Ethereum in 2015, the price of Ethereum made steady progress month on month. From late 2018, Ethereum stayed range-bound for two years but then broke out in late 2020.
What will happen next for Ethereum?
A lot is happening with Ethereum right now. If you are considering investing in or staking Ethereum, this guide help will help you make decisions based on our assessment of the future of Ethereum.
- What is Ethereum 2.0?
- What's Next for Ethereum?
- How to Predict the Price of Ethereum
- Will the Price of Ethereum Rise in 2021?
- Could Ethereum Overtake Bitcoin?
- The Key Takeaways of What's the Future of Ethereum
What is Ethereum 2.0?
Ethereum is transitioning from costly and energy-consuming proof-of-work (PoW) protocol to proof-of-stake (PoS) protocol.
In December 2020, the first upgrade component was completed, called the Beacon chain.
The transition means that you can now secure a stake in Ethereum and, as a validator, help secure and grow the Ethereum Network. That's the positives, but some potential downsides are causing hesitation in some Ethereum investors.
You can now stake Ethereum. There is a minimum requirement of 32 ETH to become an independent Ethereum validator. Or you can join an Ethereum mining pool. Either way, the staking rewards average at around 7.5% per year.
But, because Ethereum 2.0 is not yet complete, you cannot access your ETH or your ETH reward tokens until the proposed completion of ETH 2 in 2022.
You will continue to earn ETH rewards which will accrue for release on completion of the upgrade.
The remaining plan for 2021 is to merge the Beacon chain with the Ethereum mainnet, which officially ends the PoS protocol.
What's Next for Ethereum?
Ethereum plans to complete the ETH 2 upgrade with the rollout of shard chains in 2022.
Sharding will make it easier for Ethereum to scale up and increase capacity. Shard chains spread the load of the network across 64 new chains, which keeps hardware requirements low for running a node.
However, as of yet, there is no fixed date for completion other than the year.
This information means that if you staked Ethereum today, you could face a long wait of a year or more before you can touch your Ethereum stake or withdraw your ETH reward tokens.
If all goes to plan, on completion of the ETH 2 upgrade, you can access your ETH and ETH reward tokens. But, there's no guarantee against obstacles or delays. A lot can happen in twelve months, especially with cryptocurrencies.
Realistically, this necessary restriction could cause people to hold back on staking ETH.
How to Predict the Price of Ethereum
This year, the price of Ethereum soared to new heights.
In March 2020, Ethereum price was $85. In May 2021, Ethereum bounced over $4,000.
So, today, with the price of Ethereum sitting at around $3,739, is Ethereum taking a breather before heading up to new highs?
Or, will the Ethereum price depreciate for a while, stagnate in a range or shoot up like a rocket?
The image above is the weekly chart for Ethereum.
There was an excellent opportunity for Ethereum fans in March 2020, when the price of Ethereum hit the last weekly low (The second bounce on the bottom line of the chart).
Ethereum broke resistance (the top blue line) in November 2020 and headed upwards.
In February 2021, the price of Ethereum reached for support but failed, only managing to reach $680 before the price retracted and continued upwards.
Ethereum may try to test support again.
Price action almost always follows a predictable pattern. If it does and rejects support, the likelihood is that Ethereum may exceed the last high of $4,300.
So what is the future for Ethereum?
Chart patterns are helpful road maps for the future of Ethereum. But, much depends on what happens over the next twelve to eighteen months, with completing the Ethereum 2.0 upgrade.
Don't Miss: Why Ethereum Will Skyrocket
Will the Price of Ethereum Rise in 2021?
Ethereum, indeed all cryptocurrencies, takes its lead from Bitcoin.
After hitting an all-time high of $64,000, the Bitcoin price crashed down to below $30k. The price of Ethereum also fell by around 40%.
Crypto industry experts suggest that by the end of the year, Ethereum will rise to between $3,500 to $4,000.
But they've got it wrong before.
If the Beacon chain merger goes ahead this year, it will inspire confidence in Ethereum investors because it indicates that the completion of ETH 2 is on track. On the other hand, if there are delays, the price could stay range-bound or fall.
Could Ethereum Overtake Bitcoin?
Bitcoin is under the spotlight right now for its energy-intensive mining PoW protocol.
The increasing demand for high-tech computers to solve the complex hash problem is causing environmental concerns.
After hitting $64,000, the Bitcoin price dropped. It correlated with new laws from China regarding cryptocurrencies and a negative tweet from Elon Musk about the mining process requirements for massive energy resources.
Ethereum's year-on-year growth is over 900%. Bitcoin's growth is 275%.
In 2022, If Ethereum 2.0 completes the upgrades on time, the Ethereum network will be more efficient and significantly reduce running costs.
Sarah Bergstrand, the COO of BitBull, was on the panel of experts. She thinks Ethereum could hit a crazy high of $100,000 by 2025.
Many loyal fans believe in the Ethereum project, and they patiently wait for their rewards in 2022.
Check Out: Will Ethereum Make Me Rich In Ten Years?
The Key Takeaways of What's the Future of Ethereum
Ethereum is focused on efficiency and innovation for the future.
Unless Governments find a way to regulate cryptocurrencies, they are the way forward for the future. Nothing has shown us more than how fiat currency is losing favour than the Covid pandemic.
Most stores now demand payment by card. So it only seems a matter of time before digital currencies could be on the high streets and malls.
With the final upgrade of ETH 2 planned in 2022, Ethereum will be ready for super-fast transactions with proof-of-stake (PoS) protocol. In addition, lower costs and more efficient running helps to secure the Ethereum network further.
The Ethereum price predictions will carry on for the foreseeable future. So you can listen to the experts projecting five years ahead, or you can map out your own charts, monitor Ethereum's progress and make up your own mind.
What will Ethereum be worth in 2022?
If the upgrades complete on time, prices could sky-rocket. But is Ethereum a good investment in 2021?
Cryptocurrencies are notoriously volatile, but even if you aren't ready to stake Ethereum, there is still the option to buy and hold.
The Ethereum website is up to date and gives further information if you want to stake Ethereum or invest in Ethereum.
Please note that the above information is not providing advice on tax, investment, or financial services. We provide the above information without consideration for risk tolerance and a specific investor's financial circumstances.
Trading, staking or investing in cryptocurrencies may not be suitable for all investors. It does involve risk and the possibility of a loss of capital.
eToro – The Best Platform to Buy Ethereum
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.
Is Ethereum a Good Investment in 2021?
It's a tricky question to answer.
If crypto experts are correct, the price of Ethereum will rise to over $4,000 again by the end of the year.
If you want to stake Ethereum, you will need 32 ETH. Or you can join a. Ethereum mining pool. But you cannot access your ETH or ETH reward tokens until the completion of the Ethereum 2.0 upgrade in 2022
But, you can buy or stake Ethereum with no minimum requirement with an online platform such as eToro.
What Will the Price of Ethereum be in 2025?
A panel of thirty-five crypto experts predict that Ethereum will rocket to almost $20,000 by 2025. Furthermore, they suggest that, by the end of 2022, Ethereum will edge out Bitcoin as the most widely transacted digital currency.
Bitcoin uses proof-of-work (PoW) protocol for mining. However, as the mining difficulties become increasingly challenging, the rising technological requirements are causing greater demands on resources.
Is Bitcoin in danger of slipping behind? Climate change discussion is at the forefront for most governments. Ethereum's energy requirements are already less than Bitcoin. Once the ETH 2 upgrade completes, Ethereum suggests savings of up to 99% in running costs because of fewer energy demands.
A reduction in energy consumption could cause Ethereum to be more favourable and, as demand rises, so does the price.
What Will Ethereum be Worth in 2030?
The conservative estimates for the price of Ethereum in 2030 are between $5,000 and $10,000.
Of course, no one has a crystal ball but, considering Ethereum hit a new high of $4,300 in May 2021, could Sarah Bergstrand be right? Could Ethereum price hit $100,000 in 2030?
Ethereum is leading the way with improved technology that is not a drain on the environment. If Ethereum pipped Bitcoin to the #1 position by market cap, the conservative figures from the crypto experts might seem too limiting for the potential of Ethereum.