Ethereum Price Predictions: 2023 and Beyond

January 30, 2023 12:10 pm

Cryptocurrencies are volatile by nature and, thus, are difficult to predict. Nonetheless, cryptocurrency experts have tried their best to forecast the price of Ethereum in 2022 and beyond. The ETH price prediction is a controversial topic, but as one of the leading cryptocurrencies, ETH is expected to perform well on the market this year. 

While the Ethereum price prediction is not set in stone, its utility as a software network means that it is extremely popular; its wide range of applications means that it has the potential for growth in the long run. Some believe it even has the potential to grow in value by as much as 400%. Read on to find out more about ETH’s forecasts for 2022 and beyond!

The article covers the following subjects:

Ethereum in Short

Like Bitcoin, Ethereum is a separate blockchain that has its own digital currency. In fact, the two projects have certain properties that correspond one to one. For example, both coins are decentralized. No country or government backs Bitcoin or Ethereum. Furthermore, both digital currencies are built on blockchain technology so that all transactions are fast, accurate, and transparent.

However, this is where the similarities end. Ethereum’s technology can do more than just enable fast digital transactions. 

For example, Ethereum offers smart contract technology. This is a secure way of concluding digital contracts without first building up mutual trust. Ethereum transfers are also faster than Bitcoin’s, and its blockchain technology can handle more transactions than Bitcoin’s.

Most people buy Ethereum on a speculative basis. That means that people invest in the crypto coin to make money from it.

Importance of the Network Effect

The biggest advantage of Ethereum is the network effect. It is the first and, therefore, the most popular blockchain for smart contracts. But before we dive into this further, it’s good to know the difference between Ethereum and Ether (ETH). These terms are often used interchangeably.

By Ethereum, we mean the network and the blockchain. You can find all transactions of a cryptocurrency on a blockchain. And on Ethereum, transactions are paid with ETH. That is the cryptocurrency that comes with Ethereum. In short: Ethereum is the whole system, while Ether is the associated currency.

A Little History of Ethereum

Unfortunately, even we don’t have a crystal ball. Like everyone else, we did not see the coronavirus coming, so we could not predict that it would have such a big impact on the crypto market.

In 2017 and early 2018, the price of ETH grew almost exponentially. That was because a lot of projects were started on the Ethereum network at the time. This was done through Initial Coin Offerings (ICOs). These projects all had their own coin. As an investor, you could participate in these projects by sending them your fiat money. In exchange, you received these new ETH tokens. ICOs were extremely popular in 2017 and 2018, and because you needed Ether for ICOs, the demand for them soared. Due to that demand, the price rose to unprecedented heights.

The era of ICOs is over. Regulators have taken care of that. Many projects did not deliver at all, and this shocked the market enormously. Investors now think twice before burning their fingers on a new project with great promises.

There is no doubt that the 2018 bear market was brutal as ETH lost more than 92% of its value – but it has since then rebounded from the price that dropped below $100.

The Ethereum blockchain remains unquestionably the most robust smart contract platform out there. Of the top 100 tokens subject to market capitalization, 96% are Ethereum-based. Of the 1,000 best tokens, 89% consist of Ethereum.

The Growth of Ethereum

Two major factors can push the course of Ether to new heights in 2022. The first is the introduction of a new algorithm called proof-of-stake. The second one is the growth of DeFi.

Ethereum 2.0

With the renewal of Bitcoin’s historic high, all attention is riveted on it: volumes and interest are growing, and new institutional investors are coming. However, crypto investors with a long-term planning horizon prefer Ethereum 2.0: the project already reached the TOP-30 in terms of capitalization.

On November 4, 2021, Vitalik Buterin opened a deposit contract to create a liquidity pool for the Ethereum 2.0 network. At that moment, crypto investors had reserved 1.7 million ETH.

Image source: etherscan.io

The ETH 2.0 blockchain upgrade is not currently presented on rating resources since it will take several years before the network is fully deployed. Validators reserve funds in blocks of 32 ETH to participate in staking. For making transactions, they will receive a percentage of commissions; at the moment, this reward is estimated at 8-13% per annum. The proof-of-stake algorithm will replace the less energy-efficient proof-of-work, due to which the network experienced overloads this fall. And investors will receive new coins in exchange for old Ethereum in a 1:1 ratio. A reverse transition is not possible.

Mining equipment manufacturers concentrated their efforts on creating more advanced ASICs. The highest average hash rate was recorded on Tuesday, February 15, 2022.

Image source: etherscan.io

This year, Ethereum is expected to switch from the current proof-of-work protocol to proof-of-stake. Miners won’t need energy-intensive mining anymore. Instead, staked Ether is going to secure the network. Some experts claim that it will increase its scalability, security, and sustainability, so they expect the value of Ethereum to rise as well. Some expect the value of Ethereum to rise to upwards of $4,000; however, Coin Price Forecast makes a more conservative estimate. ETH started 2022 at $3,722, but, according to Coin Price Forecast’s estimates, it will fall to $2,987 by the middle of the year. By the end of 2022, the value of Ethereum is expected to drop further to $2,592. This represents a decrease of 30% over the course of the year. However, it’s possible that the cryptocurrency will rise in value instead, as the greater sustainability of Ethereum 2.0 may make it more appealing to investors.

By the end of 2023, the average value of Ethereum is forecasted to reach $4,039.

DeFi

A very important development in recent times is the growth of DeFi. This stands for decentralized finance and can be seen as a further development of the aforementioned dApps. DeFi companies are service providers that provide loan services on the Ethereum blockchain, for example, where only a smart contract is required for the export.

Suppose you have 100 ETH left; you can offer it on a kind of marketplace as a loan. Someone else can agree to this; the conditions are poured into a smart contract, and the borrower offers collateral. Nothing more is needed.

Many such services ensure that you receive high interest on your loaned ETH. And by high, we mean interest that our parents talk nostalgically about.

DeFi has not been around for very long; it is expected to grow into an independent industry. Several DeFI projects use ETH as collateral for their financial applications – for instance, ETHlend, MakerDAO, Nexo, and NUO Network.

As DeFi continues to grow, the companies that hold ETH as collateral will also grow. So, it’s a great idea to keep an eye on Ethereum updates!

The Introduction of Sharding

“Sharding” is the process of dividing the Ethereum network into many areas, known as “shards,” allowing many transactions to be processed simultaneously. Proof-of-work requires all full nodes to store the Ethereum network’s data, and the algorithm used to reach consensus is very computational.

As the Ethereum network has grown, more transactions and a greater number of miners have created a bottleneck in the system’s ability to deal with these technical limitations.

Sharding is one way of addressing this problem by distributing data and transaction processing functions among different nodes within the network. All nodes no longer need to store all data and process all transactions. Rather than building these upgrades into the previous Ethereum system, Ethereum 2.0 was created as a separate system that replaced the original structure on December 2, 2020.

Sharding is expected to launch sometime in 2023, depending on how long it takes for Ethereum to transition to its proof-of-stake protocol. Once it is introduced, we should see an increase in Ethereum transactions. Sharding will greatly reduce hardware requirements — so much so that, eventually, people will be able to run Ethereum from a laptop or even a smartphone.

Ethereum Price Forecast for 2023

ETH, like the rest of the market, is at the center of Bitcoin’s price action. So, when Bitcoin starts a bull run, ETH can also hope for it. 

As long as Bitcoin is in the lead and moves up, ETH will usually do the same. ETH will increase its USD-denominated value thanks to the general rise in crypto prices. The ratio between ETH and BTC is likely to decline. Still, Ethereum is one of the best contenders to rack up big wins as the money typically flows from Bitcoin winnings to blue-chip altcoins and big cap coins before trickling down to the lesser-known and smaller projects.

What Experts Predict

The price of Ethereum has fluctuated greatly over the past few months, with several sharp peaks and troughs. For example, on January 21, its value at the start of the day was $3,020, but by the end of the day, the price had dropped to $2,543. The plunge was caused by the dramatic BTC fall. The leading cryptocurrency touched the lows of August 2021, so ETH just followed. Concerns around global markets were reflected in Nasdaq and S&P 500 losses. 

On January 26, the price abruptly spiked and then fell again, jumping from $2,400 to $2,724 and then back down to $2,465 over the course of the day. The ETH followed Bitcoin, which was volatile due to the Fed’s decision to raise interest rates and taper bond purchases. 

Prices were also erratic on February 24 due to an escalation of Russia-Ukraine tensions; within the day, the price rose from $2,300 to $2,750. However, the open and close prices were quite close – $2,580.54 and $2,597.42, respectively.   

Nonetheless, positive predictions have been made by some experts regarding the price of Ethereum; no doubt, all its holders hope for them to be true. Read on to discover what some of the experts have to say on the price of Ethereum in 2022.

#1 Trading Beasts

Trading Beasts’ experts predict that Ethereum’s average price will not exceed $2,600 by the end of 2022. They forecast that the maximum price of $3,541.371 will be reached in August. ETH is predicted to be at its lowest value in April, where it will have a minimum of $2,382.132. Fortunately, there are no sharp falls predicted in 2022. In December, the average price will move to $2,597.518.

#2 Wallet Investor

Experts at Wallet Investor make somewhat more positive predictions regarding the average price of Ethereum throughout 2022, which they claim will range between $2,800-$4,700. They predict that ETH will reach a maximum of $5245.220 on December 29. Its minimum value is predicted to be $2,444.810 on April 1.

#3 Long Forecast

The Economy Forecast Agency has placed more conservative estimates. They forecast that ETH will hit its highest value of $3,611 in March and its lowest value of $1,863 in July. According to their predictions, ETH’s average price by the end of the year will be $2,790. The closing price at the end of the year is $2,883.

Month

Open

Low-High

Close

2022

Mar

2,945

2,494-3,611

2,761

Apr

2,761

2,411-3,071

2,593

May

2,593

2,593-3,037

2,838

Jun

2,838

2,217-2,838

2,384

Jul

2,384

1,863-2,384

2,003

Aug

2,003

2,003-2,363

2,208

Sep

2,208

2,045-2,538

2,740

Oct

2,561

2,080-2,561

2,237

Nov

2,237

2,237-2,777

2,595

Dec

2,595

2,595-3,085

2,883

#4 Coin Price Forecast

Coin Price Forecast shows that the price of ETH will be somewhat irregular this year, rising to $2,987 by the middle of 2022 before dropping to $2,592 by the year’s end.

Ethereum (ETH) Technical Analysis

Let’s start the technical analysis by exploring the ETHUSD market at the monthly price chart.

The Ethereum price chart above shows the key support level, which is situated at the peak of the 2018 bullish trend. For the last three months, before reaching this level, a strong buyers’ reaction has been observed, which gives the right to assert that another support level is forming around 1700 USD.

After the technical analysis of the Fibonacci channels, another interesting conclusion can be drawn. If to take the price movement at the bottom of the bullish trend at the end of 2020 as a basis, then the Fibonacci channel extension levels show limitation of ETH’s bullish potential, where the historical high of 4366 USD formed exactly at the Fibonacci level of 4.236. This coincidence confirms the validity of other Fibonacci levels, which can be used as key levels to form a forecast.

Giving a general description of the ETHUSD price chart, it can be noted that the ETH’s bullish potential remains in the long term. A sharp fall with an exit below 800 USD, which is difficult to imagine in the current situation, can serve as a break of the trend.

ETH price prediction for next three months

Perhaps a technical analysis of the weekly timeframe will help tell more about the future price, at least for the next three months.

The ETHUSD historical price movement in the chart above indicates strong support in the zone of 1700 – 1800 USD. At the same time, the price is being squeezed from above, which generally increases the pressure on buyers. It can be also seen that the MACD histogram has been in the negative zone for a long time. Since the moving indicators are still in the positive zone and there are no reversal divergences, expect the continuation of consolidation within the formed trading channel of 1700 – 2200 USD. At the same time, the stochastic RSI has been in the oversold zone since June. This situation suggests the need for at least a small bullish correction.

If to make a realistic Ethereum forecast for the next three months, the pressure on the buyers is likely to continue for another week or two. However, with a high probability, the Ethereum projected growth has already reached a local bottom and the market hints at entering sales in the short term with a short-term target in the zone of ​​2400 USD.

Monthly Ethereum price forecast for 2021/2022

Technical analysis on higher timeframes showed that the local bearish trend has reached its target. Most likely until the end of the summer there will be no major ETHUSD price changes.

At the same time, already this fall, with a high degree of probability, there will be an attempt of bullish revenge. The market will need to make a decision, which will determine whether an attempt to retest a historical high or another stress test for the buyer will occur. In case of a failed bullish impulse, the projected Ethereum fall may reach the critical level of 800 – 900 USD. If the bulls succeed, the future price can rise to 4200 USD or even higher.

Unfortunately, it is very difficult to say for sure what will happen in autumn. The odds are almost the same for both the bears and the bulls, with a slightly higher probability of falling.

Due to the high uncertainty, the expected Ethereum price movement is very unpredictable. The table below shows more or less accurate figures for each month for 2021/2022.

Month ETH/USD price
Low High

November

2021

1400

3500

December

2021

950

3800

January

2022

1150

4170

February

2022

1400

3800

March

2022

1750

3520

April

2022

1950

3180

May

2022

2070

3000

June

2022

2120

2870

Long-term Ethereum trading plan

Let’s make up an ETHUSD trading plan based on the most likely scenario.

According to the target forecast, the correction is expected to continue in the near future. Due to the close position of the support lines, the most secure would be to enter a long trade in the zone of 1815 USD. At the same time, the stop should be below 1740 USD. Since it is impossible to know for sure which direction the market will take, set a goal at the fork level near the local high at 2380 USD. The estimated target date is September/October 2021. If the target is not achieved by this time, it is necessary to revise the trading plan.

The ETHUSD price technical analysis is presented byMikhail Hypov.

Here, you can find daily Ethereum short-term forecasts and trading signals based on the Elliott wave analysis.

Weekly Elliott wave Ethereum analysis as of 30.01.2023

The ETHUSD market is forming a long-term bearish trend as a double zigzag, with the first motive wave W unfolding inside as a triple zigzag [W]-[X]-[Y]-[X]-[Z]. The first three sub-waves have completed within the triple zigzag, and the second linking wave [X] is unfolding as a horizontal double three (W)-(X)-(Y). Let us explore the market situation in the H8 chart.

Sub-waves (W) and (X) have completed in the linking wave [X]. The motive wave (W) is a zigzag A-B-C. The linking wave (X) is a double zigzag W-X-Y. The final motive wave (Y) has been developing as a standard zigzag A-B-C. The market should be rising in sub-waves [3]-[4]-[5] of impulse C up to the level of 2024.38, the previous high marked by wave (W).

Торговый план по ETHUSD на неделю:

Buy 1595.47, TP 2024.38

ETHUSD Elliott wave analysis is presented by an independent analyst, Roman Onegin.

Ethereum Price Prediction for 2023 by Crypto Experts

Predictions for 2023 vary from the minimum price of $1,711 to over $8,000. Some experts’ forecasts are more optimistic than others, though most do not show any kind of steep drop in price throughout 2023—no doubt a relief to ETH holders.

Trading Beasts

Trading Beasts’ predictions for the coming year are somewhat pessimistic. They forecast that ETH will be at its highest price point in January, with a maximum of $3,491.198. They predict that the value of ETH will reach its lowest point in December with a minimum of $1,805.995. This is quite a steep drop from the beginning of the year. The average price of ETH throughout 2023 will be within the  $2,100-$2,800 range.

Wallet Investor

Wallet Investor has a positive forecast for the price of Ethereum over the course of 2023. The year will begin with a minimum price of $4,350.190. At the beginning of July, the minimum price will have risen to $5,460.000. Finally, by December, Wallet Investor predicts a minimum price of $6,440.330.

Long Forecast

The Economy Forecast Agency has made rather optimistic predictions for the coming year. As you can see from the below table, by December, Ethereum will reach almost $7,000 in value, over triple the price of $2,194 at the end of 2022.

Month

Open

Low-High

Close

2023

Jan

2,194

2,194-2,723

2,545

Feb

2,545

2,545-3,159

2,952

Mar

2,952

2,952-3,560

3,327

Apr

3,327

3,327-4,129

3,859

May

3,859

3,859-4,789

4,476

Jun

4,476

4,476-5,555

5,192

Jul

5,192

5,192-6,036

5,641

Aug

5,641

4,406-5,641

4,738

Sep

4,738

4,738-5,881

5,496

Oct

5,496

5,496-6,821

6,375

Nov

6,375

5,772-6,640

6,206

Dec

6,206

6,206-7,458

6,970

Coin Price Forecast

Coin Price Forecast’s predictions are relatively optimistic. Their experts expect that by the middle of 2023, the value of Ethereum will have reached $3,237. They believe that it will rise further in the second half of the year, reaching $3,965 by the end of 2023.

Ethereum Price Prediction for 2024 by Crypto Experts

As Ethereum expert David Cox said, Ethereum, just like any other cryptocurrency, is sensitive to policy and regulatory changes. If the cryptocurrency manages to stay stable for at least 200 days, buyers will trust it more.

Trading Beasts

In 2024, Ethereum will have its lowest minimum value of $1,794.539 in January. Its highest maximum value will be $4,344.595, reached in December. The average price throughout the year will be within $1,883.418 – $3,118.619.

Wallet Investor

Wallet Investor’s predictions are more than triple those of Trading Beasts. According to the experts, the year will begin with a minimum price of $6,810.780. No harsh downs or quick ups are reserved for Ethereum in 2024. Luckily, the Ethereum price will eventually grow throughout the year. The average price will go from $7,563.000 on the 1st of January to $10181.70 on the 31st of December.

Long Forecast

The Long Forecast predicts several ups and downs for Ethereum. The year will begin with $6,970, and the price will rise up to $9,138 by the beginning of May. The price will fluctuate  throughout the rest of the year, but with a general downwards incline. The end of 2024 will bring a value of $6,548.

Month

Open

Low-High

Close

2024

Jan

6,970

6,970-8,651

8,085

Feb

8,085

6,316-8,085

6,791

Mar

6,791

6,791-8,429

7,878

Apr

7,878

7,878-9,778

9,138

May

9,138

7,234-9,138

7,779

Jun

7,779

6,077-7,779

6,534

Jul

6,534

6,115-7,035

6,575

Aug

6,575

6,446-7,416

6,931

Sep

6,931

5,414-6,931

5,822

Oct

5,822

4,548-5,822

4,890

Nov

4,890

4,890-6,069

5,672

Dec

5,672

5,672-7,006

6,548

Coin Price Forecast

The experts at Coin Price Forecast claim that Ethereum will start the year with a value of $3,965 and will rise to $4,143 within the first half of the year. Coin Price Forecast expects ETH to end the year with a value of $4,764.

Ethereum Price Prediction for 2025-2030 by Crypto Experts

Joseph Raczynski, a  technologist and panelist at Thomson Reuters, believes that the Ethereum price will rise to $8,000 by the end of 2022 and will continue to soar until it has reached $15,000 by the end of 2025.

The price of ETH will probably continue to rise to unprecedented heights in 2030. According to the predictions of Cathie Wood of Ark Invest, ETH will reach $170,000 to $180,000 per coin by 2030. This prediction has the backing of Ark Invest’s other expert analysts.         

Trading Beasts

Trading Beasts say that in 2025, Ethereum will reach its maximum value of $5,674.674 in December. Its lowest price point will be in January, with a minimum value of $3,042.535. The average price of the year will move within the $3,500-$4,400 range. There are no details about what happens afterward.

Wallet Investor

Wallet Investor predicts that the minimum price in 2025 is going to be $8582.230 on January 18th. Ethereum isn’t expected to fall below this line in 2025-2027 (the latest available data is for February 2027), according to the experts. The maximum price during this period will be $14,375.20 on December 30. Wallet Investor’s experts predict a long-term uptrend for ETH and expect the price to grow constantly.

Long Forecast

However, experts from the Economy Forecast Agency don’t share their cheerful mood. Here is their prognosis for 2025 and the first four months of 2026.

Month

Open

Low-High

Close

2025

Jan

8,444

8,172-9,402

8,787

Feb

8,787

8,787-10,907

10,193

Mar

10,193

7,963-10,193

8,562

Apr

8,562

8,562-10,627

9,932

May

9,932

7,759-9,932

8,343

Jun

8,343

6,600-8,343

7,097

Jul

7,097

5,544-7,097

5,961

Aug

5,961

4,657-5,961

5,007

Sep

5,007

4,434-5,192

4,768

Oct

4,768

3,725-4,768

4,005

Nov

4,005

3,209-4,005

3,450

Dec

3,450

3,450-4,282

4,002

2026

Jan

3,346

2,680-3,346

2,882

Feb

2,882

2,882-3,577

3,343

Mar

3,343

2,611-3,343

2,808

Apr

2,808

2,194-2,808

2,359

2025-2026 promises to be an interesting time for ETH trading. By March 2025, the price of Ethereum will have reached over $10,000; it will dwindle to $4,000 by the end of the year, continuing to drop in 2026.

Coin Price Forecast

2024 will end with $4,764 for Ethereum. The price of ETH in the middle of 2025 will be $5,377 and $5,982 at the end of 2025. Coin Price Forecast claims that Ethereum will start 2028 at $5,888, go to $6,296 within the first half of the year, and finish 2028 at $6,701. 2030 will begin with Ethereum being at $7,503. July 2030 will start at $7,900, while the end of the year will be marked at $8,295.

ETH Historical Price Changes

We can’t simply make price predictions without looking back. Currently, ETH is traded at $1 592.54.. Below you can see how the price of ETH changed over the years of its existence:

Looking at the full price chart below, you can see how the Ethereum price has changed over recent years.

January 2018 began with a price near $1,300. In April 2018, Ethereum experienced a price below $400. Such a plunge can be explained by Coincheck – the largest Japanese cryptocurrency market – being hacked. The decline was shown until November across all cryptocurrencies. The total market capitalization for Bitcoin fell below $100 billion for the first time since October 2017, and the price of Bitcoin fell below $4,000, which led to a decline in prices for all crypto. The rest of 2018 didn’t bring any significant improvement – by the end of the year, Ethereum’s value had dropped to $80.

During the first half of 2019, ETH grew to above $300 by June. Ethereum was joined in its success by its elder sibling, Bitcoin. Ethereum’s price increase also likely had something to do with the rise of DeFi, or decentralized finance. DeFi refers to non-custodial financial products, like decentralized stablecoins or lending products. Most DeFi protocols are based on Ethereum. 

ETH didn’t manage to hold its position. ETH continued to drop in value throughout August. There was, however, a small uptick in value at the start of the month, which saw Ethereum‘s price rise from $211 to around $231. The cryptocurrency fell again by December 2019. In early December, US authorities arrested Ethereum developer Virgil Griffith for consulting with North Korea on how to use cryptocurrency to evade sanctions. In the middle of December, UK cryptocurrency exchange Coinfloor said it would delist Ethereum and Bitcoin Cash.

2020 showed growth up to $290 in January. On the day when the WHO declared a global pandemic, Ethereum fell to $109, less than half of its high earlier in the year. At the start of December 2020, the Ethereum 2.0 upgrade got under way. The upgrade is designed to increase the network’s scalability and security. Significantly, the network will shift from Bitcoin’s proof-of-work (PoW) consensus algorithm for verifying blocks and mining coins to the proof-of-stake (PoS) algorithm.

From January 2021 to April 2021, the price of Ethereum rocketed. It was only at $1,385.5 in January, but during just five months, the price reached $4,000. It happened due to the upgrade and shifting to the PoS protocol. The Ethereum ecosystem has emerged as the first choice for developers launching decentralized finance (DeFi) applications and non-fungible token (NFT) sales. 

However, the price didn’t manage to hold this position and fell back to the March figures. The value of ETH in USD has grown from $737.73 on 31th of December 2020 (BinanceUS) to an all-time high of $4,362.35 on May 12, 2021. Since the 12th of May, a dramatic fall has taken place due to the overall cryptocurrency downtrend. The reason for this trend is believed to be some of Elon Musk’s tweets about Bitcoin-related environmental concerns. Also, on the 19th of May, the price of Bitcoin fell by more than 30%, reaching the local minimum of $30,000. As a result, Ethereum fell to $1,800. The price went down from $4,362.35 on the 12th of May to $2,099.58 on the 23rd of May. 

It was a stepping stone for Ethereum to transition to a PoS protocol. Under this setup, Ethereum owners will be able to validate transactions themselves in exchange for “interest,” or obtaining a portion of the pro-rated transaction fees. Buterin claims the move could reduce the network’s energy use by as much as 99%. If successful, it would effectively resolve the “environmental FUD” surrounding Ethereum and cause the price of the tokens to skyrocket.

However, there is a fly in the ointment. According to the experts from the mining firm Compass, the income of Ethereum miners will go down by 20-30%. The London protocol has burned more than $1 billion of ETH. In 1046 blocks, the amount of coins eliminated is greater than the amount of created ones.

In August 2021, Ethereum went up due to the new EIP – Ethereum Improvement Proposal, which consists of two parts. It allows Ethereum holders to pay fewer transaction fees. Moreover, about 3 mln ETH are to be removed from the market each year. This action will lead to even more demand, as Ethereum will eventually become scarce.

A strong uptrend continued until the beginning of September, when Ethereum reached highs of May 2021 near $3,972. On September 7-8, the price fell by more than $900. The plunge was caused by the BTC sell-off.  Until September 21, the price of the cryptocurrency was moving down. It seems ETH/USD has been forming a new downtrend.  

However, the next wave of Ethereum’s growth started on September 29; since then, its price has risen by more than 70%. The growth can be explained by a combination of encouraging comments from Fed Chair Jerome H. Powell, the upcoming Altair update, and the beginning of October, which has historically been a strong month for cryptocurrencies. This clear trend upwards was strengthened by the fact that the U.S. Securities and Exchange Commission has approved ProShares’ application to launch the Bitcoin Strategy ETF on the 15th of October. On November 2, the CME Group announced it would launch a new Micro Ether futures contract. On November 8, Ethereum rose to a new all-time high of $4,812.09. The value of ETH began to slowly decline throughout December.

This continued throughout January 2022. ETH was not the only crypto affected; many other digital currencies dropped in value at this time. On January 24, ETH dropped to $2,160, its lowest level since July 2021. According to various experts, this decline was due to the rampant increase of the Omicron variant and rising inflation. Moreover, some states continued tightening their crypto policy. February saw more fluctuations; however, the price has been trying to recover.

Is Ethereum (ETH) a Good Investment?

Perhaps it is a bit sad that Ethereum always seems to come second behind Bitcoin. Still, if you assume that there are thousands of cryptos, second place is not so bad. We can make a nice bridge to why Ethereum is an interesting investment opportunity within the crypto world in 2022.

Ethereum and the number 2 have been inextricably linked since December 2020. Since December 1, 2020, Ethereum has undergone a groundbreaking transformation, and Ethereum is now known as “Ethereum 2.0”.

In short, the main upgrade of Ethereum 2.0 over Ethereum 1.0 is in its scalability. Ethereum 2.0 uses the technique of sharding for this. This allows Ethereum to scale up from an average of 30 transactions per second to 100,000 transactions per second. This means that Ethereum has even more utility than before, making it a very interesting crypto coin to keep track of during 2022 and onward.

If investing in Ethereum seems like an interesting idea, you’re welcome to register a free demo account on LiteFinance! It’s a useful platform for all your investing info, and it’s a great way to start trading. 

Year

Mid-Year

Year-End

2022

2,987

2,592

2023

3,237

3,965

2024

4,143

4,764

2025

5,377

5,982

2026

5,291

5,767

2027

6,239

5,888

2028

6,296

6,701

2029

7,103

7,503

2030

7,900

8,295

2031

7,817

8,169

Source: Coin Price Forecast

 

Ethereum Price Prediction FAQ

Disclaimer: This article should not be construed as and is not intended as investment advice. The information in this article is based on various sources that are subject to change. Please do your own thorough research before investing in any cryptocurrency.

Price chart of ETHUSD in real time mode

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

Rate this article:

{{value}} ( {{count}} {{title}} )

Feed from Litefinance.com

MoneyMaker FX EA Trading Robot