Ethereum Price Prediction: How Much Will Ethereum Be Worth in 2022 and What Will Happen By 2025?

In 2021, the crypto community witnessed one of the strongest Ethereum rallies yet. Until recently 1 ETH sat at $250. In 2021, the tables quickly turned, with ETH coin peaking at a whopping $4,878. This, however, was followed by a downturn to levels below $3,000, at the time of the writing.

This post is a walk down the memory lane of Ethereum price forecasts to see if they were spot-on or a miss. We will also take a glimpse into the future and find out how the ETH price is expected to fluctuate by 2025. So buckle up and prepare for a cozy investment read with us.

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What Is Ethereum?

The Ethereum development team provides an official explanation of the platform’s nature. It states:

“Ethereum is an open-source, global platform for building decentralized applications. Ethereum's code is accessible worldwide, designed to control digital value, and runs precisely as programmed”.

Although the impact of the platform is often overshadowed by Bitcoin’s headline-making growth, the fans of Ethereum keep their fingers crossed for the flippening — the moment when Ethereum finally surpasses Bitcoin by market capitalization.

There are several reasons why so many people believe the platform is extremely powerful.

Ethereum broadens the scope beyond the crypto realm.

Unlike Bitcoin, Ethereum’s blockchain isn’t limited to only supporting a digital currency. Rather, ETH was developed to support a platform that, on its own, supports a large range of decentralized applications (DApps).

What attracts decentralized app developers to Ethereum? For the most part, it’s a signature feature of the platform — the Ethereum Virtual Machine (EVM).

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Ethereum Virtual Machine is a distributed computer governed by a consensus protocol. At any given moment, EVM has a perfectly defined state.


Main features of the EVM:

  • Uses a specifically designed programming language for decentralized development — Solidity.
  • Allows running decentralized apps with no middlemen or downtime.
  • Is Turing-complete — can execute all operations supported by standard computers.

Smart contracts

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Similar to a few other blockchains, Ethereum relies on smart contracts. These agreements are more reliable than the traditional ones because they do not rely on human intermediaries.

If in the case of a paper contract a person oversees the process, a smart contract employs an algorithm. So as soon as the conditions for the agreement are met, a predefined set of actions is executed automatically.

Smart contracts are the main way of establishing trust in decentralized operations.

ETH and Ethereum mining

Mining is the process that releases new coins and permits their circulation in the market. Miners get new coins in exchange for verifying blockchain transactions (by providing a Proof-of-Work) - both in cases of Ethereum and Bitcoin.

Both by functions and impact, you can think of the mining network as a decentralized equivalent of banks that review financial operations. Thanks to validating transactions before storing them immutably in a block, Ethereum and other blockchain networks prevent double-spending.

Ethereum Takes The Lead in DeFis and NFTs

Unrivaled NFT leader

If you are wondering “What’s up with the recent Ethereum frenzy?”, one of the answers is NFTs.


NFTs (short for non-fungible tokens) are real-life objects (music, videos, art) that rely on the same software as cryptos do. NFTs are bought and sold online. An NFT is different from fungible cryptocurrencies because it cannot be split into pieces.

Therefore, the price investor pays for NFT is always for 1 NFT, not for say 0.5NFT.


NFTs quickly became a one-of-a-kind phenomenon. Some sales were phenomenal: Beeple (a digital artist) created and sold 5,000 drawings for $69 million as NFT — to compare, original Monet’s Nympheas was sold $14 million cheaper in 2014.

What’s in NFTs for Ethereum? The thing is, most exchanges rely on the Ethereum backbone. Statistically, in Q1 of 2021, the value of all NFTs sold on the network surpassed $2 billion.

So, other than driving everyone crazy with its seemingly absurd sales (a tweet for $3 million, anyone?), the NFT explosion was a rocket engine for ETH, skyrocketing the value of the token.

Investors bet on DeFi, DeFi bets on Ethereum

DeFi (short for decentralized finance) is an umbrella term encompassing various applications of blockchain and crypto in the financial industry.


The founding team of Ethereum anticipated the rise of DeFi — in fact, Vitalik Buterin outlined the platform’s use cases in fintech back in the original Ethereum white paper.

There are several reasons why Ethereum is the perfect backbone for DeFi apps.

Ethereum uses a programming language - Solidity designed specifically for writing smart contracts. Also, the flexibility and scalability of EVM make the platform the right fit for building DeFi products.

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As of February 2022, influential backers like the European Investment Bank rallied behind the DeFi boom. It looks like DeFi exchanges, stablecoins, and lending platforms are here to stay — all this bids a prosperous future for Ethereum.

Ethereum Price Prediction: Will Crypto Reach New Highs?

With regards to the future, which outlook does the crypto community have on Ethereum growth? To find the answer, Finder surveyed 35 academics and crypto industry experts.

Is now the time to sell, buy, or hold Ethereum?

Due to the recent price dip of Ethereum, most experts agree that now is a good time to invest in ETH. Many of them estimate that by December 2022 ETH can reach $6,000, — by 2025 the prices are often expected to peak over $19,400.

Will investors back up Ethereum?

The consensus is that Ethereum is an attractive investment opportunity. Experts link increased interest in ETH from large bidders to the widespread deployment of smart contracts and the ability of the network to empower and support decentralized finance.

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Another reason to bet on ETH is the large-scale network effect associated with the platform.

What’s network effect

The network effect (also known as Metcalfe’s Law) can be summarized as “a product becomes more valuable as more people use it”. Classical examples are telephones (when few people had them, fewer needed them) or Internet websites losing value due to the loss of traction (when Facebook blew up, MySpace was no longer relevant).

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What about Ethereum? In the nutshell, as more developers use the network to deploy applications, more people start using the platform. Then, new Devs who want to build a blockchain app prefer Ethereum to a different ecosystem because it has a larger user base. It’s a cycle that reinforces itself and can fuel the growth of the network for years.

What about scalability?

Ethereum uses an auction-based system where users bid on gas fees. As more people join the platform and try to outbid each other, the fees blow up as well. As a result, users might prefer switching to alternatives that are cheaper to use and leave the platform. This is an example of a so-called negative network effect.

Recent Changes in Ethereum

One of the reasons why investors are both excited and cautious about investing in Ethereum is numerous updates that are currently in the works. On the one hand, these changes are designed to fix numerous issues of the platform, such as congestion and high energy consumption.

On the other, many fear that the updates will destabilize the network — they prefer to take a wait-and-see approach before backing Ethereum financially.

To clear any confusion behind Ethereum updates, let’s take a look at their main points.

Ethereum 2.0

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The first phase of Ethereum 2.0 was launched in December 2020. At noon, December 1st, the development team shipped the Beacon Chain — a coordination system responsible for introducing proof-of-stake to the platform. It is designed to handle block creation and validation, as well as the distribution of rewards among validators.

As for the future, the Ethereum team has announced the following updates:

  • Sharding.
  • State execution (ETH 2.0 will support smart contracts and enable the deployment of decentralized apps)
  • An upgraded version of the EVM — eWASM. The key difference between the two is that the latter will support all popular programming languages while the former ran solely on Solidity.

To go into the details of ETH 2.0, take a look at the post we wrote on Ethereum 2.0 update.

The Introduction of Sharding

Sharding is a computer science technique commonly used to scale databases. It breaks a large chunk of data into smaller components (shards). In the case of Ethereum, it splits the main blockchain network into smaller partitions, each one running independently. That removes the need for nodes to record every transaction on the network.

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The scalability issue was foretold by the crypto community back in 2017 and supported by incidents like the Crypto Kitties Network Clogging.

At the moment, Ethereum works as a network of nodes. Each node stores the platform’s entire record history (in February 2022, it was over 500 GB worth of data). Theoretically, such a system makes Ethereum decentralized.

Practically speaking, if fewer people can run such huge nodes, the control over the network goes in the hands of those who have the technical capacity to do it. Over time, as nodes bloat, Ethereum’s fate can be managed by a handful of users, capable of commandeering nodes and manipulating this data.

That’s where sharding comes in handy.

ETH 2.0. plans on splitting the network into 64 shards. Each of these partitions will be capable of handling as much traffic as the main blockchain does today — so the update’s implications for scalability are enormous.

Ethereum Price Technical Analysis and Price Predictions

How do investors know when it is a good time to buy and sell their tokens? The main way to get a bigger picture of the market and make a sound ETH price prediction is through technical analysis.

In finance, it is a strategy designed for predicting price movements on the market by using visualizing trends based on historical data. Investors who are skilled in technical analysis tools can fairly accurately predict market fluctuations.

Technical Analysis Instrument #1. Elliott Waves

Elliott Waves is a widely used technical analysis strategy that reflects the market’s crowd psychology in a form of waves. There are two types of fluctuations: impulsive waves set the trend and corrective ones normalize the market.

ETH/USD Elliott Wave For February 2021 (Source)

Each impulsive fluctuation consists of 5 high-degree waves, each correction — 3 high-degree waves.

There are numerous rules the technique is bound by: let’s recap the main ones:

  • Wave 2 cannot surpass the origins of Wave 1
  • Downtrend — wave 2 cannot break the top of Wave 1
  • Uptrend — wave 2 never breaks the bottom of Wave 1
  • Wave 3 is never the shortest

Though the basics are straightforward, to an untrained analyst, Elliott Waves aren’t easy to identify, especially the corrective ones. To get better at using EW for determining the Ethereum projected value, we recommend picking up a few books, like the Visual Guide to Elliott Wave Trading.

Technical Analysis Instrument #2. On-Balance Volume

A generic OBV chart (Source)

On-balance volume (OBV) is another tool that helps identify an asset’s price momentum by considering the daily trading volume. To calculate OBV and apply it to Ethereum value predictions, one should use a formula:

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OBV calculations are bound by three key rules:

Rule #1. If today’s closing price is higher than yesterday’s:

OBV = Yesterday’s OBV + Today’s Trading Volume

Rule #2. If today’s trading volume is lower than yesterday’s:

OBV = Yesterday’s OBV - Today’s Volume

Rule #3. If prices don’t fluctuate between yesterday and today:

OBV = Yesterday’s OBV

Technical Analysis Instrument #3. Accumulation/Distribution Line

ADL for ETH/USD (source)

A/D line is a technical analysis tool that helps detect forthcoming price falls even if the market’s on the rise at the moment. The instrument uses two parameters: volume and price and helps spot divergences between the two.

The A/D is calculated by the following steps.

#1. Calculate the money flow multiplier (MFM) by the formula:

Where:

  • MFM — money flow multiplier.
  • Low — low price for a specific time frame
  • High — high price for a specific time frame.
  • Close — closing price.

#2. Calculate the money flow using the expression below:

Money flow = MFM Period volume

#3. Determine the accumulation/distribution (A/D):

A/D = Previous A/DCMFV

CMFV — current period money flow volume.

These and other technical analysis tools help traders and fintech experts predict the price fluctuations of Ethereum.

Retrospective: Past Ethereum Predictions That Got It Right

Before pinning our focus on the future of the network and discussing Ethereum price forecasts for the next four years, let’s take a look at what the crypto community had to say about the growth of Ether in its early days. Did we get anything right?

2016

In 2016, Ether had just stormed into the crypto community — no one knew how well it would age and perform. The Ethereum value prediction of the time was modest — the community did not give in to far-fetched enthusiasm. Specifically, it was estimated that, by February 2016, Ether would cost $1.5 per token.

The reality has far outdone the estimate. In February, 1 ETH was worth $4.65, which was three times more than predicted. By March, Ethereum was already worth $11.96, proving its rapid growth and untapped potential.

2017

2017 was the year of overwhelming optimism for crypto. The market sentiment for Ethereum was staggeringly positive, with the number of transactions rapidly rising. However, as the fees went up both for BTC and ETH, the crypto community realized that there are trade-offs for widespread adoption, most notably, network congestion.

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2017 still marked high faith in ICOs. It was estimated that initial coin offering will become a domain form of supporting early-stage projects — the rest is history.

2018

In January 2018, search interest for Ethereum was astonishing. At some point, Ether reached the $1,400 price mark. At the time, Thomas Lee predicted that, by the end of the year, the price will exceed $1,900. Instead, the year marked Ethereum’s fall — in December, 1 ETH was equivalent to $133.

2019

Throughout 2019, crypto experts stayed positive about Ethereum’s future. Some predictions estimated that Ether would hit the $1,400 mark by 2019. Others kept both options open, acknowledging that Ether could both dip below $100 or triple in value.

Who got it right? By December 2019, 1 ETH was at $151.19 — still above the $100 point but far from the promising growth crypto experts predicted.

2020

Thinking about 2020, experts considered heightened geopolitical tension induced by the upcoming US elections. Historically, when centralized powers lose their grip, crypto prices tend to go up. That’s why experts at Wallet Investor predicted a 34% growth rate for Ethereum, assuming the prices would go up to $200 by December, 2020.

In reality, Ether gained traction even faster than predicted, reaching $746 by the end of the year. The most plausible reasons for the rise are the global pandemic that landed a heavy blow to centralized institutions, the emergence of decentralized finance platforms, and the release of the first of the ETH 2.0 update.

ETH/USD Price Predictions For The Next Three Months

According to Coin Price Forecast, ETH is expected to be at $2,900 mid-year, hence increase by around 10% from the current levels of $2,600-2,700, where it got after the recent downturn caused by markets uncertainty over FED’s rate hikes and the situation in Ukraine.

Ethereum Price Predictions 2022

Though overshadowed by Bitcoin, Ethereum had its own share of bull growth last year. Considering the track ETH is on, industry experts suspect it will outperform Bitcoin by ROI by the end of 2022.

Here are the price predictions for Ether by the end of the year as defined by the Wallet Investor:

  • Short-term Ethereum price: $2,900.
  • December Ethereum Price: over $5,600.

Ethereum Price Predictions 2023

Analysts tend to believe that Ether’s value will keep increasing.

DigitalCoinPrice shared an ETH price prediction, according to which, by December next year, 1 ETH will be worth over $5,000. LongForecasts expects that Ethereum will hold the $5,200 price mark by the end of 2023.

ETH Price Forecast for 2022 (data by Digital Coin Price)

On the other hand, there are not-as-moderate ETH price predictions as well. For one, CoinPriceForecast expects that the token will be worth over $16,000 as 2023 reaches its end.

Ethereum Price Predictions 2024-2025 and beyond

According to Finder’s expert panel, by 2025, Ethereum will establish its powerful presence on the crypto scene. 51% of respondents believe that, in the next 4 years, Ether will replace Bitcoin as the dominant cryptocurrency.

What about price estimates? The market sentiment is generally optimistic, with ETH value prediction numbers ranging from $10,000 to $100,000.

Some, like the CEO of Alpha 5, are less enthusiastic about ETH’s prospects. In fact, Vishal Shah estimated that the Ethereum projected value will be $4,000, which is less than Ethereum sold for in May 2021.

Conclusion: Is Ethereum a Good Investment and How Much Will ETH Be Worth?

With the steady deployment of Ethereum 2.0., the growth of DeFi, and overall positive market sentiment, in 2022, investing in ETH is a sensible investment. Of course, the price of the currency is determined by market trends, regulation, individual and corporate adoption. We’ve seen it happen to BTC - the value spiked after Tesla offered to accept Bitcoin, and dropped after the support was discontinued.

Right now, it looks like Ethereum is on the right track. Emerging doubts about the inefficiency of Poof-of-Work cause many to look for alternatives - and so, Proof-of-Stake could massively influence the price dynamics.

The majority of Ethereum predictions forecast ether’s steady growth over the years, so converting cash into tokens now stands a strong chance of generating multiple-fold ROI by 2025.

FAQ

Who Has invested in Ethereum

Joseph Lubin

Joseph Lubin is one of Ethereum cofounders who later left the team to work on his own project. Now he’s the founder of ConsenSys, an Ethereum-based platform for creating decentralized applications. According to independent evaluations, the amount of his ETH is around $10 billion. Recently, Mastercard, UBS, and JPMorgan invested in Consensys contributing to the company’s $65 million raise in 2021.

Together with Consensys, Joseph Lubin also founded EthSuisse, a Swiss-based company that has been one of the most active ETH investors.

Richard Sherman

Richard Sherman is a famous cornerback for San Francisco’s 49ers and is known in the crypto community to be one of the most active early adopters among celebrities. He invested in crypto after receiving fan requests to enable merchandise purchases with BTC, ETH, and altcoins.

The Winklevoss Brothers

After winning a $65 million settlement from Facebook, Cameron and Tyler Winklevoss invested a portion of this money in Bitcoin and Ethereum. Brothers purchased BTC when it valued less than $10. Several years later, they invested another $350 million in other currencies, including Ethereum.

Vitalik Buterin – Ethereum Founder

As the founder of network and the ideator of the famous Ethereum white paper, Vitalik Buterin is a key player in the crypto market. He never acknowledged how much ETH exactly he holds, however, there are unofficial reports that claim his possession of nearly 500 000 coins.

What Factors Affect The Price of Ethereum?

  • Adoption. When Ethereum gets recognized by bigger brands, online platforms, and corporations, its value grows. When in 2018, the network was recognized as a top choice for building decentralized apps, smart contracts, and ICO tokens, the value of Ethereum increased from $300 to $1500.
  • Mining profitability. If more miners join the network, the reward frequency gets lower. Miners are motivated to sell their blocks at a higher price. If there’s demand on the market, the value of Ethereum will grow.
  • Regulation. When China banned initial coin offerings and closed local exchanges, the crypto trading market experienced a value decrease. In particular, the stance of the US on cryptocurrency regulation has the biggest impact on price fluctuations.
  • Exchanges. The growth of exchange infrastructure leads to the higher availability of crypto. Successful communication of Coinbase, Binance, Kraken attracted new adopters to the market. On the other hand, security issues on exchange services tend to discourage investors.
  • Speculation. The value of Ethereum is not tied to a central bank, and traders are the ones to influence the price. If users recognize Ethereum infrastructure as stable and useful, the ETH adoption will grow. However, unlike Bitcoin, Ether doesn’t have an upper coin limit, so there’s also a risk of inflation.

Can Ethereum Reach $10,000?

Yes. There’s no technical limit to how much an ETH price can grow, so it’s definitely possible. According to many experts (including Megan Kaspar, an analyst who successfully predicted the current value of Ethereum), the $10,000 milestone is highly likely to happen. The new update gives investors reasons to believe in this growth - especially since the adoption of Proof-of-Stake will prevent congestion and create an alternative for energy-consuming Bitcoin.

Is Ethereum a Bad Investment?

Whether any cryptocurrency is a good investment or not is determined by market growth, current market cap, use cases, its progress according to an official roadmap, and many other variables. In 2021, Ethereum has grown by 500%. In 2020, the team started a promising 2.0 update which should end in Ethereum switching to the Proof-of-Stake, fast transaction validation, and lower gas fees. So, it’s likely that Ethereum has taken a course for future growth.  

Should I Buy Bitcoin or Ethereum?

It depends on your goals. Ethereum, just like Bitcoin, can be used for value storage (as digital gold). However, the currency also has a lot of other purposes: the network is a core for DApps and smart contracts. It’s extensively adopted in the emerging NFT market.

Also, Ethereum is planning to switch from Proof-of-Work to Proof-of-Stake, an energy-saving alternative to a previous consensus algorithm. This is why many analysts consider Ethereum’s ROI to grow in the future, and some even advocate choosing ETH over BTC. At the end of the day, the final choice depends on a given market state, adoption, currency value, etc.

*This communication is intended as strictly informational, and nothing herein constitutes an offer or a recommendation to buy, sell, or retain any specific product, security or investment, or to utilise or refrain from utilising any particular service. The use of the products and services referred to herein may be subject to certain limitations in specific jurisdictions. This communication does not constitute and shall under no circumstances be deemed to constitute investment advice. This communication is not intended to constitute a public offering of securities within the meaning of any applicable legislation.

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