Ethereum Price Prediction
Ethereum is the second-largest crypto asset by market capitalization. Not surprisingly, it is closely watched by existing and potential investors.
In this article, we will present the price forecasts coming from different experts. Beyond these forecasts, we will dive into Ethereum charts and the ETH price prediction indicators.
Let’s take a brief look at the asset details before we jump to the Ethereum price predictions.
What is Ethereum?
Ethereum is an open-source platform that utilizes blockchain technology, an important blockchain project which made contribution in the creation of NFTs and DeFi. It was created in 2013 by a group of developers led by Vitalik Buterin, specifically for executing smart contracts on the blockchain.
Being a pioneer in introducing smart contracts capabilities, Ethereum enabled the automation of complex transactions and became the core of Web3, a new paradigm for applications on the internet. Web3 represents the third era of the internet, enabling decentralized applications (DApps) that run on a peer-to-peer network rather than being controlled by a single entity or server. This innovation has paved the way for a more decentralized and democratic internet.
Technology Behind Ethereum
Unlike first-generation blockchains such as Bitcoin, Ethereum is programmable, allowing for more complex transactions. The programs that run on the Ethereum blockchain are called “smart contracts”. Each smart contract is a collection of code residing at a specific address on the blockchain. When the predetermined conditions written into the code are met, a smart contract is automatically executed, facilitating the automation of transactions on the chain.
The smart contracts technology contributed to the development of decentralized applications (dApps) and stimulated the growth of the entire decentralized finance industry (DeFi). This innovation not only enabled the creation of a wide range of applications but also contributed to the development of a whole new ecosystem of financial services that operate without a central authority. Moreover, the flexibility of smart contracts has led to the creation of various decentralized autonomous organizations (DAOs), which are entities that operate without centralized control, governed by smart contracts.
A distributed computer called the EVM (Ethereum Virtual Machine) is responsible for executing smart contracts. An EVM is capable of processing the most complex operations programmed into smart contracts, making it a crucial component of the Ethereum network. It interprets and executes the code in each smart contract, ensuring that the outcome is consistent across all nodes in the network. This ensures the integrity and security of transactions and applications on the Ethereum chain. Additionally, the EVM enables the development of applications that are not only decentralized but also interoperable, meaning they can interact and share information with other applications on the Ethereum network. This interoperability is key to the success of the DeFi ecosystem, as it allows different applications to work together and create more complex financial products and services.
The Ethereum Framework
According to Vitalik Buterin, the founder of Ethereum, the project is a new Internet, with enormous possibilities and unlimited potential. It is designed to be a global platform for decentralized applications, allowing users all over the world to write and run software that is resistant to fraud, censorship, and third-party interference.
Any qualified programmer can create his or her own application in the Ethereum network. The new network can be programmed to work according to a specific algorithm, thanks to smart contracts. And the system guarantees protection from crashes, intruders, censorship, and interference from centralized regulators. This is because the Ethereum network is decentralized, meaning it is run by thousands of volunteers all over the world, making it extremely resilient to attacks and failures.
As a result, Ethereum can be deployed in a wide range of human activities. For example, it allows:
- Running smart contracts of increased complexity to manage supply chain;
- Creating any type of application (NFT games, utility programs, etc.);
- Digitalizing physical assets (gold, securities, precious stones, industrial goods);
- Managing customer identification and document authentication services;
- Organizing decentralized trading platforms;
- Facilitating peer-to-peer transactions without the need for intermediaries;
- Developing decentralized financial services such as lending, borrowing, and asset trading;
- Creating and managing decentralized autonomous organizations (DAOs);
Overall, the Ethereum framework provides a robust and flexible environment for developers and businesses to build and deploy a wide variety of applications and services, contributing to the development of a more open, decentralized, and efficient digital economy.
Ethereum 2.0 update is a big update designed to increase the scalability of the Ethereum blockchain through global changes to its architecture. The update was called “The Merge”, which referred to the merge of the original Ethereum 1.0 mainnet and the new Beacon chain’s PoS system. Essentially that means that the Ethereum blockchain shifted from the PoW (proof-of-work) to PoS (proof-of-stake) consensus mechanism which is more energy-efficient.
This transition is crucial for the Ethereum network as it addresses some of the major challenges faced by the platform, including high energy consumption, scalability issues, and high transaction fees. The update happened in a two-step process. It started with the successful update called “Bellatrix” on September 6, 2022. The Merge itself occurred on September 15, 2022. The transition to the new consensus mechanism went smoothly, despite the controversy and conflicting opinions from members of the crypto community.
What Ethereum 2.0 Will Change
After the transition to Proof-of-Stake (PoS), the Ethereum network miners were replaced by validators. Immediately after the Merge, the complexity and hash rate of mining dropped to zero. No one is mining ETH coins anymore. At the same time, the energy consumption required to secure the network dropped by 99.95%. This significant reduction in energy consumption is a positive step towards making the Ethereum network more sustainable and environmentally friendly.
In the future, as part of the ongoing efforts to improve the network, Ethereum will implement zero-knowledge rollups. This innovative technology increases the scalability of the blockchain by enabling the network to handle a larger number of transactions without significantly increasing the size of the registry.
Additionally, the transition to PoS is expected to reduce transaction fees on the Ethereum network, making it more accessible and attractive to users and developers. This is particularly important as the demand for decentralized applications (dApps) and decentralized finance (DeFi) services continues to grow. Lower transaction fees will enable a broader range of applications and use cases, contributing to the ongoing development and expansion of the Ethereum ecosystem.
The next step is the deployment of the new Ethereum WebAssembly Virtual Machine (eWASM). It will allow different programming languages to be used to write smart contracts. eWasm is designed to make Ethereum more efficient and eventually will replace Ethereum Virtual Machine (EVM). This upgrade will further enhance the flexibility and capabilities of the Ethereum network, enabling developers to create more complex and innovative applications. Ultimately, the transition to eWasm will contribute to making Ethereum a more robust and versatile platform for decentralized applications and services.
Ethereum Technical and Fundamental Analysis
As of the end of August, 2023, Ethereum cryptocurrency ranks second by capitalization ($198 billion) only behind Bitcoin. The value of Ethereum is about $1,650 per coin. Since March 2022, the price of ETH experienced a notable dip, plunging to a low of approximately $800 following a sustained period of decline. However, as of this writing, it has rebounded to $1,700, despite experiencing significant fluctuations along the way.
According to the technical analysis sperformed by the TradingView platform experts, most indicators show a neutral-negative trend for Ether in the medium term. The main support point will be at the level of $1503. At the same time, both short-term growth and local drops of ETH price beyond this value are possible. A negative forecast of the Ethereum exchange rate for 2024 assumes a drop in the value below $1100. Such a decline in the value of ETH will radically change the balance of power — in this case, the bearish scenario will prevail.
In terms of fundamental analysis, Ethereum is the strongest asset in the industry, with a huge number of professional developers behind it. The utility of Ethereum has a significant impact on the price of the ETH coin. Any transactions made on decentralized finance (DeFi) protocols, decentralized exchanges (DEX), derivatives, assets, and payment solutions built on Ethereum require ETH fees. In addition, the Ethereum DeFi ecosystem is dynamic and diverse, with the network accounting for over 57% of DeFi's total TVL segment ($22.23 billion).
However, Ethereum’s market share is gradually being absorbed by more modern blockchains. The transition to PoS, introduction of zero-knowledge rollups, and further modernization of the network can possibly make things better for Ethereum. Although we saw a momentary drop in price after "The Merge" event, in the long run the network upgrade will make the ETH coin deflationary. The inflation rate of the coin has dropped by about 90%, as fewer coins are created and more — burnt. And this fact, coupled with the continued widespread adoption of cryptocurrencies, will favorably affect the price of Ethereum.
Ethereum Historical Price Performance
Ethereum achieved a milestone in November 2021, hitting an all-time high when the value of the cryptocurrency soared to nearly $5,000. However, this triumph was short-lived as the cryptocurrency market embarked on a downward trajectory, causing the value of ETH to plummet towards the end of 2021.
Ethereum rebounded in March and the first half of April 2022, being worth about $3500. It reached such levels amid increased investor enthusiasm ahead of “The Merge” update.
However, by early June, the value of the coin was just above $2000, and in the middle of the month, the rate of ETH collapsed below $900.
By mid-August, ETH managed to briefly reach the $2,000 level, after which it gradually rolled back to around $1,500. According to Mads Eberhardt, a cryptocurrency analyst at Dutch bank Saxo, the anticipation of “The Merge” caused ETH cryptocurrency prices to rise over the summer. He also previously called “The Merge” one of the most important events in cryptocurrency history.
As September 15 was approaching (the date of "The Merge"), the price of ETH crawled to $1,779 on September 12. But the day before and after the update, Ethereum's price showed a drop, eventually falling to about $1,200.
As of this writing on August 2023, ETH is trading around $1,650 amid a local rebound in the entire cryptocurrency industry.
Experts Share Their Thoughts on Ethereum Price Future
In August 2023, various experts have shared their thoughts on the future of Ethereum (ETH) value, although not all provided specific predictions, contributing to the overall crypto market uncertainty. For instance, Changelly mentioned that based on the price fluctuations of Ethereum at the beginning of 2023, crypto experts expect an average ETH rate, but did not provide a specific price forecast for August 2023. Similarly, Analytics Insight discussed a new hybrid token, which experts say is an alternative investment option with massive potential to drive profit in 2023, but did not provide a specific ETH price prediction for August 2023.
CryptoNewsZ mentioned that most crypto experts are bullish on the future of Ethereum, but did not provide a specific price prediction for August 2023. This bullish sentiment is a positive sign amidst a potential crypto winter. Forbes Advisor mentioned that many experts believe Ethereum could reach a $40,000 valuation by 2030, but did not provide a specific price forecast for August 2023. PrimeXBT mentioned that as of 27 August 2023, Ethereum (ETH/USD) is trading at $1654.33 per ETH. However, it did not provide a specific prediction for the future.
LiteFinance discussed the future of Ethereum and whether it is a good asset to invest in, but did not provide a specific price forecast for August 2023. Additionally, Priceprediction.net forecasts that in August 2023 the price of Ethereum is expected to be around a minimum value of $1,737.18. Unfortunately, the Technewsleader.com site did not have a specific price prediction for Ethereum in August 2023, but it does have predictions for 2023, 2025, and 2030.
At the time of writing, TradingView demonstrated a negative sentiment for the next month. The predictions are based on the most popular technical indicators. For a real-time update of the sentiment, click here.
Yearly Ethereum Price Prediction - 2022 to 2030
According to the experts from Changelly.com, Priceprediction.net, and Technewsleader.com, the price of ETH should show a steady growth year by year and by 2030 could reach the mark of 34,375.56 dollars.
Ethereum Price Prediction 2024
In 2024, as the experts from Changelly.com, Priceprediction.net, Technewsleader.com predict, ETH might be as high as $2970:
Ethereum Price Prediction 2025
2025 ETH price prediction by Changelly.com, Priceprediction.net, and Technewsleader.com still stay positive. The experts predict that ETH may increase almost twice compared with the 2024 value:
Ethereum Price Prediction 2026
In 2026, according to predictions on the websites Changelly.com, Priceprediction.net, and Technewsleader.com, ETH token value will be:
Ethereum Price Prediction 2027
The year 2027 is expected to be very fruitful for crypto investor. According to predictions on the websites Changelly.com, Priceprediction.net, and Technewsleader.com, ETH maximum price will increase ten times compared to today’s value:
Ethereum Price Prediction 2028
The predictions for 2028 prices are as follows, according to predictions on the websites Changelly.com, Priceprediction.net, and Technewsleader.com:
ETH Coin Price Prediction 2029
In 2029 ETH price could increase 12-fold, as Changelly.com, Priceprediction.net, and Technewsleader.com think:
Ethereum Crypto Price Prediction 2030
According to predictions on the websites Changelly.com, Priceprediction.net, Technewsleader.com the next ETH token price in 2030 will be:
Ethereum Coin Price Prediction 2040
The predictions for 2040 prices are as follows, according to predictions on the website fintechguruji.in:
Ethereum Price Prediction 2050
The predictions for 2050 prices are as follows, according to predictions on the website fintechguruji.in:
How to Read and Predict Ethereum Price Movements?
The synergy of technical analysis of price charts, fundamental analysis of the asset, and sentiment analysis of market players is crucial for predicting ETH future price movements. In order to make informed decisions about when it is best to buy, sell, or hold cryptocurrency, traders need to conduct all the above-mentioned types of analysis.
Additionally, it is also important to consider the overall crypto market trends, geopolitical events, and any upcoming upgrades or developments in the Ethereum network. For example, the transition to Ethereum 2.0 and the implementation of EIP-1559 have had a significant impact on the price of ETH. Moreover, the activities of other blockchain projects, the level of adoption of decentralized applications (dApps), and the overall demand for cryptocurrencies can also influence Ethereum's price.
Ethereum Price Prediction Indicators
Traders use technical analysis to predict Ethereum price movements on short- and medium-term timeframes. Such analysis includes the study of price patterns in the past. In order to identify these patterns, investors analyze the price chart with the use of technical indicators, the number of which is endless. They can vary from a simple moving average to the most complex set of algorithms. Here are the most widely used indicators:
- Moving Average, MA. This indicator displays the average of n past values up to the current moment;
- Exponential Moving Average, EMA. It gives more weight to the most "recent" values, but does not discard old values completely;
- Rate of Change, RoC. Is a momentum-based technical indicator that measures the percentage change in price between the current price and the price a certain number of periods ago.
- Relative Strength Index, RSI. Is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
- MACD (Moving Average Convergence Divergence). It is a trend-following momentum indicator that shows the relationship between two moving averages of a security's price.
- Bollinger Bands, which are a volatility indicator that consists of a middle band being an N-period simple moving average (SMA), an upper band at K times an N-period standard deviation above the middle band, and a lower band at K times an N-period standard deviation below the middle band.
How to Read Ethereum Charts and Predict Price Movements?
The main tools for traders are various charts and graphs representing the dynamics of parameters determined by both price and volume.
The most popular tool among professionals is the "Japanese candlestick chart". It contains more information than a regular line chart. Besides displaying the change in price based on the closing market price, the candlestick chart also shows the price movements over a certain period of time. Each candlestick has information about the highest, lowest, opening, and closing prices.
The candlestick consists of three parts: the upper tail, the lower tail, and the body. The upper tail shows the highest price and the lower tail shows the lowest price within the selected period of time. The body is usually colored green or red. The color depends on whether the trend was "bullish" or "bearish", i.e. whether the closing price was higher than the opening price (green, bullish) or lower (red, bearish) during the selected time.
Different candlestick shapes and their combinations give crypto-traders information about trends and their changes. There are about ten types of candlestick patterns. Below you can find the information about the basic ones.
Bullish and Bearish Price Prediction Patterns
The Hammer pattern is a bullish pattern. It looks like a short body with a lower tail. That is, the candle shows that the price went down strongly, but in the end, the price consolidated above the opening price — the buying mood is dominant.
Another bullish pattern is the Inverse Hammer, which implies that buyers control the trend. That is, the candle shows that the price rose strongly, but then it returned to a small plus by the close — the buying sentiment is testing the upper positions.
Bearish candlestick patterns are also represented by the Hanging man and the shooting star. The Hanging Man has the same shape as the hammer, but it can be found at the end of an uptrend. The price came down hard but locked in near the opening mark. This means that the buyers managed to partially and temporarily increase the price of the cryptocurrency, although the overall result of the candle is negative.
In a Shooting star pattern, the price went well up, but came back down and closed near the opening. It may show that buyers are running out of strength and the cryptocurrency will start selling.
You can also learn more about the basic patterns from our article.
What Affects the Price of Ethereum?
Asset prices in the cryptocurrency market are still quite volatile and Ethereum is no exception. To avoid potential losses, it is important to understand what impacts the rate of ETH. Among the main factors affecting ETH in 2022 are the following:
- The value of Bitcoin as the first and most influential cryptocurrency;
- The political environment;
- Cryptocurrency regulations;
- Market manipulation by "whales";
- The speed of cryptocurrency adoption;
- Ethereum network upgrades and security;
- Internal economic factors (coin inflation or deflation, average transaction parameter per day, size of fees).
Additionally, the overall sentiment in the cryptocurrency market, technological developments, and the demand for decentralized applications (dApps) and DeFi projects can also impact the value of ETH. For example, the growth of the DeFi sector and the increasing use of Ethereum for smart contracts and dApps can lead to an increase in demand for ETH and, consequently, its price.
How Should You Treat Ethereum Price Predictions?
It is necessary to understand that no forecast can give 100% correct information. Due to the fact that the cryptocurrency market is young and has a low capitalization compared to the stock market, it is characterized by high volatility and lack of regulatory mechanisms, etc.
In addition, there are often whale manipulators in the cryptocurrency market, whose actions can be predicted probably only by insiders. And the political environment, government bans, or simple statements about the imminent introduction of bans have already repeatedly caused the market to fall, due to which many forecasts have never come true.
All these factors are the reason why the forecast accuracy of 60-70% is already considered quite high in the cryptocurrency market. It is also worth noting that due to the specifics of the cryptocurrency market, even a forecast from professional experts can not be taken as a direct guide to action.
Therefore, it is important to approach Ethereum price predictions with a healthy dose of skepticism and to use them as just one of many tools in your investment decision-making process. It is always recommended to conduct your own research, consider multiple sources of information, and consult with a financial advisor if necessary.
The world of cryptocurrency is a dynamic and rapidly evolving landscape, with Ethereum standing as a key player as the second-largest crypto asset by market capitalization. This article has provided a comprehensive analysis of various aspects of Ethereum, including its underlying technology, the significant changes anticipated with Ethereum 2.0, its historical price performance, and expert opinions on its future price trajectory.
As discussed in this article, the market trend of Ethereum is influenced by several factors, including technological advancements, regulatory changes, and global economic conditions. The transition to Ethereum 2.0 is a critical development that could potentially enhance its long-term stability and growth prospects. Additionally, regulatory changes and economic factors worldwide also play a significant role in shaping its price trajectory. Expert opinions, while varied, offer valuable insights into the potential future of Ethereum.
For crypto enthusiasts and investors, it is crucial to consider all these factors in conjunction with their own investment goals and risk tolerance. Making informed investment decisions requires a comprehensive understanding of market dynamics and a well-thought-out strategy. It is also advisable to stay updated with the latest news and trends in the crypto world, as the market is highly volatile and subject to rapid changes.
In conclusion, while this article provides a comprehensive overview of Ethereum and its potential future trajectory, it is important to approach investment decisions with caution and due diligence. For example, while some experts believe that Ethereum could reach prices as high as $50,000 by 2050, others are more conservative in their estimates. Cryptocurrencies are inherently volatile, and past performance is not indicative of future results. Therefore, investors are encouraged to conduct their own research, consider various perspectives, and make informed investment decisions that align with their individual financial goals and risk appetite.
Is Ethereum a Good Investment?
Ethereum is one of the most well-known and fundamentally strong cryptocurrencies on the market today. It also has much growth potential, so it's considered to be a great cryptocurrency to buy in 2022.
What Price Will Ethereum Reach in 2023?
Experts at Priceprediction assume that the price of ETH will be at least $2532.85 in 2023. And the token's maximum price could exceed $2603.14.
Should I Invest in Ethereum?
Ethereum is the blue chip of cryptocurrencies, second only to Bitcoin in terms of market capitalization. According to the Ethereum price forecast from the experts, ETH will show stable growth, primarily due to the increasing scalability brought by the transition to Ethereum 2.0, as well as the introduction of the deflationary model. However, whether or not to invest in this asset is up to you.
What Will Ethereum Be Worth in 5 Years?
Experts at Priceprediction suggest that the Ethereum price in 5 years will be at least $11 517.82.
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