Ethereum has taken a hit for the better of 2022. From highs of $4800 in November 2021, Ethereum's price has dropped to as low as $985 in June 2022.
Under these circumstances and the market still heavily bearish, it is possible to wonder, is Ethereum a good investment?
This guide comprehensively analyzes Ethereum's price and where it could go next. By the end of this read, you should know whether Ethereum is a good cryptocurrency investment to buy today. You will also have a good idea of where to buy Ethereum at low fees and less hustle.
Virtual currencies are highly volatile. Your capital is at risk.
If you are new to the world of Ethereum investing, you might be wondering if Ethereum is a good investment, or should I invest in ETH? Well, the easiest answer to those two questions is yes – Ethereum is likely a good investment, and investing in Ethereum could pay off big time.
One of the biggest reasons to invest in Ethereum is Ethereum 2.0, an upgrade of Ethereum's algorithm that will transition it from proof of work to proof of stake. If the transition is successful, it may increase the price of Ethereum immensely. But that's just one of many reasons why investing in Ethereum could be profitable.
Ethereum has increased significantly since the start of last year, and it shows no sign of slowing down. Experts believe the ETH coin has plenty of growth ahead and that investing in Ethereum is a smart financial decision for the long term. Therefore, it could be a good time to invest in Ethereum ETH while the coin is performing very well.
In this article, we'll break down all Ethereum-related myths circulating online and help you come to your own conclusion on if you should consider investing in Ethereum.
Virtual currencies are highly volatile. Your capital is at risk.
As Ethereum is the second-largest blockchain platform, many crypto experts believe that Ethereum is a good investment compared to other cryptos. Despite all the ups and downs in Ethereum's history, analysts believe that Ethereum's price could grow further in the long-term.
One of the factors that will influence investing in ETH in 2022 is Ethereum 2.0, the second iteration of Ethereum. Ethereum 2.0 will focus on energy efficiency and staking instead of mining. Note that proof of stake involves the active transaction validation and network support by holding funds in a crypto wallet to ensure safety.
Another reason to consider investing in Ethereum is the increasing use of blockchain technology, which attracts more and more successful crypto traders. Such technology can facilitate online payments, loan distribution, and commodities trading.
Why Should I Consider Investing in Ethereum? Well, Ethereum is an innovative technology that can change the whole world. To be more precise, Ethereum has introduced dApps and smart contracts that allow users to make transactions without a middleman. Thanks to the introduction of smart contracts, Ethereum can revolutionize computer programming and digital ownership as a whole.
People will be able to buy different assets from all over the world without dealing with banks and bureaucracy. Ethereum also allows the tokenization of artwork, patents, mortgages, person-to-person transactions, and even voting.
No surprise that according to data provided by the World Economic Forum, up to 10% of the global Gross Domestic Product globally will be facilitated via blockchain technology by 2025.
Ethereum can support not only individuals but businesses around the world by providing improved interconnectivity. This technology can foster innovations, such as crypto-collectables (such as NFTs – non-fungible tokens), blockchain-based healthcare records, sustainable energy sharing, and so on and on.
Because Ethereum is decentralized, it's believed Ethereum can also help people target censorship and run uncensorable dApps to keep societies informed.
On top of that, Ethereum's cryptocurrency ETH is one of the cryptocurrencies rising in popularity. The great news is that, unlike Bitcoin, Ethereum is uncapped. There are around 120 million ETH in circulation at the time of writing and this number is increasing.
Here we should note that programmers are also compensated in Ether coins to run the protocol on their computers and help the network remain safe and effective.
Last but not least, diversification matters in the world of trading, which is enough of a reason to invest in Ethereum.
After all, Ethereum is not only a cryptocurrency but an innovative platform for smart contracts, tokens, and decentralized apps.
Virtual currencies are highly volatile. Your capital is at risk.
Is Ethereum a safe cryptocurrency to buy today? There is no right answer to this question. Your decision should be based on your analysis of Ethereum's core fundamentals and risk tolerance.
In terms of fundamentals, Ethereum is undoubtedly one of the best cryptocurrencies in the market today. It is used as a launch platform for all kinds of decentralized applications, ranging from DeFi to games and even NFTs. This means that despite the market volatility, there is a real demand for Ether tokens, the native currency of the Ethereum blockchain.
There is a lot to love when it comes to Ethereum. One of Ethereum's most significant selling points is decentralization. Ethereum is highly decentralized, with millions of nodes securing the network. This has two advantages for the Ethereum network.
The first one is censorship resistance. In a world where censorship is becoming a major issue, a network that no one can stop is a good investment. Besides, thanks to its decentralized nature, Ethereum is also secure since it is almost impossible to take control of the network in a 51% attack.
These factors could see Ethereum grow in adoption over the years, and the same will reflect in the price of ETH.
Virtual currencies are highly volatile. Your capital is at risk.
Like all other asset classes, it is essential to have a background of a cryptocurrency's price history before investing. This can help you understand where the asset's price is in its broader price cycles.
In the case of Ethereum, we can easily say it is one of the most successful cryptocurrencies ever created. Ethereum entered the market in July 2015 and, at the time, was trading at $0.75. With high volatility in the market at the time, Ethereum dropped to a low of $0.42, just three months after hitting the market.
From there, Ethereum went through a series of bull and bear cycles. The most notable Ethereum bull/bear cycle was in 2017. Ethereum went from a low of $8 in January 2017 and peaked at a high of $1360 in January 2018.
In the crypto crash that followed, Ethereum turned bearish throughout 2018. This continued to March 2020, when Ethereum dropped to a low of $97.
However, after cryptocurrencies made a V-shaped recovery in April 2020, Ethereum gained upside momentum.
By the time of the crypto market peak of November 2021, Ethereum was trading at a high of $4800. That's a 650,000% increase from the price at launch in 2015.
However, as has often happened in crypto, cryptocurrencies entered a bear market in December 2021. Ethereum has been going down for the better part of 2022 and as of June 2022, was trading at $1000.
This is still a phenomenal rally for anyone who invested in Ethereum at launch. For context, if you had bought $1000 worth of ETH in July 2015, you would be worth $1.3 million today. That's despite the fact that cryptocurrencies are deep in a bear market.
From the above Ethereum price history, it is clear that if you had bought just $1000 of Ethereum back in 2015, you would be thousands of percentages in gains today.
It is also noteworthy that Ethereum's popularity has been going up over the years. This is evident in the growing number of Ethereum addresses, nodes securing the network, and the ever-growing number of decentralized applications running on the Ethereum network.
Despite the growing adoption, Ethereum is not immune to the cryptocurrency market's volatility. The meltdown that has characterized the cryptocurrency market for the better part of 2022 has not left Ethereum untouched.
At the same time, external factors have weighed heavily on the price of Ethereum in 2022. For instance, the war in Ukraine and the aggressive interest rate hikes by Central Banks have taken investor appetite away from risky assets like Ethereum.
The dropping prices have also drawn the interest of government regulators to cryptocurrency prices. This has further pushed Ethereum prices lower as investors fear that adverse regulations could be underway.
Up to this point, you have an idea of how Ethereum has been trading since it entered the market.
Here is a recap of the same to further help you decide whether Ethereum is a good investment or not.
It is clear that Ethereum goes through a series of bull and bear cycles, but the trend is upwards overall. It is an indicator of the highly volatile nature of the cryptocurrency market as a whole.
Virtual currencies are highly volatile. Your capital is at risk.
You need to understand that Ethereum price prediction, as with all other cryptocurrency price forecasts, is speculative. No one can tell where a cryptocurrency will be trading 5 to 10 years from now.
That's said, a good understanding of technical analysis can give you a good idea of how a cryptocurrency will be trading going into the future.
Overall, most cryptocurrency market analysts expect Ethereum to make a rebound before the end of the year. Some Ethereum price predictions expect Ethereum to push back through the $2000 mark by the end of the year.
More long-term, analysts are even more optimistic about Ethereum's potential as an investment. The consensus estimates for Ethereum as of 2025 are between $9000 and $10k.
Some analysts even believe that Ethereum could be trading at a high of $12,000 or more by the end of 2025.
Virtual currencies are highly volatile. Your capital is at risk.
Ethereum is the largest blockchain platform in the market. Despite its issues, such as high gas fees and low transaction speeds, none of its competitors have managed to dethrone it.
This has a lot to do with Ethereum's security and dependability. Since it is highly decentralized, the odds are that no one can shut it down for whatever reason. Many of its competitors are centralized and can easily be shut down – It has happened in the past.
This dependability has given Ethereum adoption for multiple use cases; some of them are below:
Decentralized Finance entails using smart contracts to decentralize banking services such as lending. DeFi has been on an exponential growth path over the last 4-years, and most DeFi protocols run on the Ethereum blockchain.
Among the most notable DeFi projects that run on the Ethereum blockchain are Compound, MakerDAO, and Bancor.
Not only are these DeFi projects giving value to Ethereum today, but they also make it one of the best cryptocurrencies to invest in going into the future.
Since 2020, the NFTs market has recorded an exponential growth rate, with some NFTs going for millions of dollars.
Ethereum is the dominant player in the NFTs market. Not only is it preferred by many for minting NFTs, but most of the large NFT marketplaces are also based on the Ethereum blockchain.
To give you an idea of how big a deal Ethereum is in the NFTs market, an Ethereum-based NFTs platform called Polymath raised $59 million in funding in 2021.
As more assets get tokenized through NFTs, the same will reflect in the value of Ethereum going into the future.
Cryptocurrency payments are growing in adoption. Ethereum is one of the cryptocurrencies that have recorded the highest levels of adoption over the years. Ethereum easily rivals Bitcoin in adoption for payments.
Ethereum's growing acceptance in payments has a lot to do with its fast transaction speeds, low cost, and the fact that transactions cannot be censored.
As more people turn to cryptocurrency payments, Ethereum stands to benefit the most. This makes it one of the best cryptocurrencies to invest in, as its value could go up with increased adoption.
The full transition to Ethereum 2.0 will likely accelerate Ethereum adoption. The Ethereum merge is expected to happen in August 2022, after which most Ethereum transactions will be completed on layer-2 solutions like Polygon.
This will cut transaction costs and increase confirmation speeds, which most users want from Ethereum.
Virtual currencies are highly volatile. Your capital is at risk.
To buy Ethereum, you need first to create an account with a reliable broker. Reliable in the sense that their fees are reasonable, and you can trust them not to run away with your assets.
That said, no matter what exchange you use, taking your cryptocurrency assets out of exchanges is always advisable.
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Virtual currencies are highly volatile. Your capital is at risk.
If you are still unsure of whether Ethereum is a good investment, consider the following pros to Ethereum that give it growth potential.
While Ethereum is a highly volatile asset, its potential for exponential gains is quite high. The best part is that you don't need much money to invest in Ethereum. When using eToro, you can buy as low as $10 worth of Ethereum.
Virtual currencies are highly volatile. Your capital is at risk.
Yes, investing in Ethereum is worth considering. For many, investing in Ethereum has proven to be a great decision.
So is Ethereum worth buying? Right now, Ethereum is definitely considered a good investment. And, if you are looking to invest in it, now would probably be a good time to do so. While no investment is risk-free, investing in Ethereum has generated more than 10,000% return over the last few years. Whether you're new to Ethereum investing or just curious about how to make the most of your investment, understanding what to know before investing in Ethereum is critical.
In the end, the final decision comes down to you. What kind of investor do you want to be? Figure out the answer to that question, you'll definitely know if Ethereum is a good investment!
Up to this point, you have a clear idea of whether Ethereum is a good investment. With Ethereum expected to start running fully as Ethereum 2.0 from August 2022, the price of ETH could get a boost. Not only will it make Ethereum more attractive to developers, but deflationary tokenomics could also positively impact the price.
If you have the resources and would like to diversify your portfolio, you can also consider buying ApeCoin. ApeCoin is one of the top metaverse cryptocurrencies in the market today, and once the market rebounds, it could also do well. Like Ethereum, you can buy ApeCoin on eToro and other top cryptocurrency exchanges.
Virtual currencies are highly volatile. Your capital is at risk.
Ethereum is a good investment. It is widely adopted and is making upgrades that will make it even more attractive to developers.
Most analysts expect Ethereum to retest $2000 by the end of the year.
Investing in Ethereum is safe as a cryptocurrency but it also carries risks of volatility. It's also highly advisable to invest in cryptocurrencies such as Ethereum on a regulated platform like eToro.
Analysts expect Ethereum to trade at upwards of $10,000 by 2025.
Some predictions say Ethereum could reach as high as $12,000 by the year 2030. With that said, there are no guarantees, so conduct research of your own, and consider buying fractional tokens at eToro for as little as $10.
Virtual currencies are highly volatile. Your capital is at risk.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.