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Ethereum prospects look good as it trades at 78% off its all-time highs
Ethereum is a popular cryptocurrency that was created in 2015. It's the second-largest by market capitalization, and it had an impressive bull run last year, hitting $4800 in November 2021. While prices have dropped since then, many investors are optimistic that Ethereum could see another significant rise like the one from 2021, or even bigger.
In this article, we give you an Ethereum price prediction based on ETH's history of success and its potential for future growth. We'll also guide you on investing in Ethereum without increasing trading fees.
Virtual currencies are highly volatile. Your capital is at risk.
Like the rest of the market, Ethereum has had a pretty bearish year. Ethereum started the year bearish and has been on a consistent downtrend up to this point. When writing this article, Ethereum was trading at $955.62.
Despite the downtrend, there is a lot to look forward to for Ethereum in 2022 and many years to come. Below is our forecast for Ethereum for the remainder of 2022 and the years ahead.
Virtual currencies are highly volatile. Your capital is at risk.
Is Ethereum a good cryptocurrency to buy today? Ethereum has seen incredible growth over the last few years, and it's no surprise that investors are betting big on this cryptocurrency. After an extended period of stagnation in 2018 and 2019, Ethereum gained momentum after the Bitcoin halved in 2020. The interesting part is that, even after the halving, most of the altcoins market remained dormant. Ethereum was one of the few that caught up the momentum early. By the end of 2021, Ethereum was 200% up from its 2017 highs.
So, what is Ethereum all about, and how did it start? Ethereum was created in 2013 by Vitalik Buterin, who developed this network with smart contract functionality and digital money. However, Ethereum officially entered the market in 2015. The platform allows people to build decentralized applications (Dapps) that can be used for global payments or application hosting. Within the Ethereum blockchain, there have come multiple tokens that have been hugely successful, further reinforcing the importance of Ethereum in the cryptocurrency ecosystem.
In terms of price, Ethereum has been on a rollercoaster ride since it launched, pretty much like all other cryptocurrencies. When it launched in 2015, Ethereum spiked, then traded in a range for the remainder of the year. However, Ethereum entered a bull market in January 2016 and made a high of $15.20 in March 2016.
However, as happens in crypto, this rally was followed by a massive correction that saw Ethereum lose more than 50% of its value. By the end of 2016, Ethereum was trading at $8.
There was a consolidation in Q1 of 2020 before the market-wide cryptocurrency bull run started in April 2017. The April 2017 rally was quite strong, and by the end of the month, Ethereum was trading at $53. The trend continued, peaking out in January 2018 when Ethereum hit a high of $1500.
As with previous crypto bull runs, Ethereum entered a bear market towards the end of January 2018. The bear trend lasted for two years, and in 2020, when the lockdowns were announced, Ethereum dropped to a low of $97. However, this sharp correction in March 2020 was short-lived. Ethereum made a V-shaped recovery in April 2020, and by September 2020, was trading at $481.
Ethereum's price momentum then entered a consolidation phase, all the way into November 2020. A new wave of buying momentum in November 2020 saw Ethereum enter a new aggressive bull rally that saw it make all-time highs of $4800 in November 2021.
Since making an all-time high of $4800 in November 2021, Ethereum, like all other cryptocurrencies, entered a bear run that has lasted for most of 2022. Ethereum has broken the $1000 mark, and the odds are that it could test even lower prices.
To recap Ethereum's price history from launch to date.
Virtual currencies are highly volatile. Your capital is at risk.
Known for its volatility, the crypto market is not an easy market to predict. After all your investments could drop by more than 80% in bear markets. But knowing that risk exists means we can take precautions and prepare ourselves accordingly. A masterful of cryptocurrency bull and bear markets can be quite profitable for cryptocurrency traders.
There is nothing that confirms this observation than Ethereum's price action. From lows of under $100 in early 2020, Ethereum went on to make a new all-time high of $4800 in November 2021.
A correction followed in December 2021, and Ethereum has been in a sustained bear market for the better part of 2022. With the global economy expected to enter a recession in 2023, the odds are that Ethereum prices could remain depressed for the better part of the year.
However, if more investors are under the impression that Ethereum has hit the bottom, then we could see a rebound in the course of the year. It is on this premise that our Ethereum price prediction for 2022 stands at anything between $1500 to $2000.
There are a number of key factors that could give Ethereum such a boost. One of them is an upgrade to the Ethereum network, especially the transition to Ethereum 2.0. The merger is expected to happen in August 2022 and will have a number of implications for Ethereum.
The first one is that it will make Ethereum transactions much cheaper than they are today. This could see more developers turn to Ethereum as their favorite blockchain for launching Dapps. Since this would mean more usage of Ether, it could have an upside impact on the price.
Then there is the issue of Ethereum tokenomics. With the transition to Ethereum 2.0, Ether tokenomics will become even more deflationary. This means new demand will be chasing an increasingly fewer number of tokens in the market. The impact could be increased upside momentum for Ethereum going into the future.
We expect these two factors to give Ethereum price prediction a push to at least $2000 by the end of the year.
Virtual currencies are highly volatile. Your capital is at risk.
There are many factors that can affect the price of Ethereum, but it all comes down to how widely adopted Ethereum becomes. The more people use this cryptocurrency and depend on its functionality for their business or personal life, the higher the price will go.
For this reason, if the transition to Ethereum 2.0 is a success in 2022, our Ethereum 2.0 price prediction for 2023 is anywhere between $2000 and $3000.
Besides the transition to Ethereum 2.0, there are many other factors that could see Ethereum retest $3000 in the course of 2023. One of them is a potential increase of NFTs on Ethereum 2.0.
The fast expansion of the NFT market in recent years has been accompanied by an unprecedented degree of wealth creation. There have been NFTs that have sold for upwards of $10 million. This trend is expected to continue drawing in new investors and could play a role in pushing up the price of ETH.
After the massive selloff in the cryptocurrency in 2022, the odds are that by 2023, the market will have found the bottom. This coupled with developments within the Ethereum blockchain could also add to the positive momentum of the price of Ethereum.
As we had mentioned earlier, 2024 is the year for the next Bitcoin halving. If previous Bitcoin halving events are anything to go by, the odds are that the entire cryptocurrency market could turn bullish in 2024. As such, our Ethereum price prediction for 2024 is that Ethereum will blow through its 2021 highs, and close the year at $6000.
As happened in previous bull markets, Bitcoin halving bull rallies tend to hit their peak a year after the halving starts. Therefore, if a bull run starts in 2024, the odds are that it will continue into 2025.
If we go by previous halving events, our Ethereum price prediction for 2025 is $10,000. This is a possibility because, besides halving, Ethereum is expected to be more widely adopted in launching Dapps than ever before.
Virtual currencies are highly volatile. Your capital is at risk.
Going by what has been happening in previous Bitcoin halvings, the prices of cryptocurrencies could experience a massive correction in 2026. Previous post-halving corrections have seen cryptocurrencies drop by as much as 90%. However, there could be a change in the 2026 Bitcoin halving.
Part of the reason why the cryptocurrency market experiences wild price swings is that it is still a small market. The entire crypto market capitalization is smaller than that of companies like Apple or Amazon. This means the actions of a few market players can have an adverse impact on the price.
However, if crypto growth over the last decade is anything to go by, then chances are that the market could be multiple times bigger in the next 5-years. As such, the market is likely to be less volatile than it has been over the last couple of years. For this reason, our Ethereum price prediction for 2026 is around $8000.
After a bull run in 2025, and a correction in 2026, 2027 could be a year of crypto market consolidation. However, due to Ethereum's deflationary tokenomics, and growing adoption, ETH could see marginal gains in 2027. For this reason, our Ethereum price prediction for 2027 is anywhere between $8000 and $9200.
The next Bitcoin halving happens in 2028 and is expected to trigger another cryptocurrency bull run. With cryptocurrency adoption growing, our Ethereum price prediction for 2028 is $11,000.
2029 could be the year that the cryptocurrency bull market of 2028 peaks out. Going by Ethereum's growing adoption, this could be the year that Ethereum hits $15,000.
At this point, cryptocurrencies have gone mainstream, and multi-billion applications are running on the Ethereum blockchain. At the same time, the ETH token burn has accelerated, meaning demand is now chasing an ever-smaller number of tokens. The result could be Ethereum easily testing prices above $20,000 by the end of 2030.
Virtual currencies are highly volatile. Your capital is at risk.
As discussed above, we expect Ethereum to keep trading in the same cycles that it has since its launch. In the table below, we explore Ethereum's potential price action between 2022 and 2030.
Virtual currencies are highly volatile. Your capital is at risk.
For someone new to the market, it is easy to think that all cryptocurrencies are made equal. However, this can't be further from the truth. There are cryptocurrencies that carry much more weight than others in terms of quality and potential value growth. Ethereum is one of the best cryptocurrencies today. It easily ranks alongside Bitcoin in what are considered blue-chip cryptocurrencies.
Ethereum is widely adopted for launching Dapps, and thanks to its shift to Proof-of-Stake, it is now possible to earn a passive income off Ethereum.
Below are some of the core use cases of Ethereum that are likely to play a significant role in its price action going into the future.
Decentralized finance is the new way to make payments without relying on third parties such as banks or exchanges. This means you can send money directly from one person's wallet (or account) to another.
It also helps that there are very few fees associated with these transactions since they happen through the blockchain network. On top of that, transactions must be faster than they would when done through the centralized banking system.
At the same time, many other banking services have now been taken over by DeFi. For instance, it is possible to borrow, lend, and even earn interest on deposits on DeFi. The interest rates are much higher than what any conventional bank can offer, further making DeFi attractive to a lot of investors.
Ethereum is one of the top DeFi cryptocurrencies in the market today. On the Ethereum blockchain, there are hundreds of successful DeFi cryptocurrencies, and many more coming up. This means Ethereum is likely to keep going up in value as DeFi adoption grows. The adoption is likely to be accelerated because once the Ethereum merge happens and Ethereum starts running as Ethereum 2.0, fees will be much lower.
Investors can also buy these Ethereum-based DeFi tokens and speculate on them, alongside the price of Ethereum.
One of the ways that cryptocurrency investors are spending their Ether is to mint NFTs. Over the last two years, the NFTs market has experienced significant value growth, and the same has also been reflected in the value of Ethereum.
So, what exactly are NFTs, and how are they likely to play into Ethereum's value going into the future? Well, Non-fungible tokens are a form of digital data stored in the blockchain that can be transferred to another person. The ownership is registered on the blockchain. This makes NFTs tradeable and have commercial value.
If the growth trajectory is anything to go by, there is every reason to believe that they could play an instrumental role in the long-term value growth of Ethereum. As of 2021, the NFTs market was worth $41 billion, and with their current growth rate, analysts expect them to be worth $147 billion by 2026. This would result in an accelerated Ethereum token burn, and that's good for the ETH price long-term.
DAOs have grown in popularity over the last couple of years, and many of them are based on the Ethereum blockchain. To better understand how big of a deal DAOs are to Ethereum's long-term value, lets' first take a glance at what DAOs are all about.
DAOs are a new type of organization that can be considered an outgrowth of traditional companies. They use smart contracts to make collaborative decisions across networks, and their members own them collectively in much the same way as individuals do with other organizations today. The only difference is that all DAO Treasury functions are factored in the code.
Most of them are built in such a way that members vote for decisions using Ethereum, or Ethereum-based tokens. As more businesses go the DAOs way, the fundamental value for Ethereum will only go up.
Virtual currencies are highly volatile. Your capital is at risk.
The common perception is that speculation is the main factor that affects cryptocurrency prices. However, if history is anything to go by, there are many other factors that have a role in the value of cryptocurrencies.
In this section, we explore some of the factors that have a significant role in the price of Ethereum.
Ethereum is one of the few cryptocurrencies that have actual utility in the market. Ethereum's use case as a launch platform for all kinds of decentralized applications has had a positive impact on its price. That's because these applications require Ethereum, and the higher the demand, the higher the price of ETH goes. This is the main reason why Ethereum has been on a consistent uptrend, when you zoom out its price chart from 2015 to date.
While utility has helped drive up the price of Ethereum tokens, there are factors that have countered the same. Over the last five years, Ethereum scaling issues have become even more pronounced.
This has led to an upsurge of Ethereum competitors that have chipped away at its market share. Many of the so-called Ethereum killers have capitalized on scalability as a key to growth.
Nonetheless, Ethereum has remained the top platform blockchain, and its value has continued to grow. That's because, despite its scaling issues, Ethereum remains one of the most secure networks today. Ethereum decentralization also means it is censorship-resistant.
First-mover advantage matters in all markets, not just crypto. Ethereum was the first blockchain that could be used to create smart contracts. This has seen its community grow exponentially over the years, and made new entrants inconsequential to Ethereum's value growth. Now that Ethereum is dealing with its scaling issues, the odds are that its community will get even bigger. This will further play into Ethereum's price going into the future.
Ethereum is the dominant platform blockchain in the market today. It is also in the process of an upgrade that will see it eliminate the scaling issues that affected it in the past.
That said, Ethereum is not the only cryptocurrency with the potential to do well going forward. Chainlink is another top altcoin that could do well in 2022 and beyond. Chainlink. Chainlink is the dominant cryptocurrency in the decentralized oracles market. Just like Ethereum's dominance gives it an edge, LINK also has an advantage of its dominance as the go-to blockchain for decentralized data.
Virtual currencies are highly volatile. Your capital is at risk.
From our Ethereum analysis and the broader cryptocurrency market, chances are that Ethereum could remain bearish in the very short term. However, the upcoming Ethereum merge could trigger increased activity on Ethereum due to the lower transaction costs and higher speeds. It could trigger a bounce-back that could see ETH recover most of its losses by the end of the year.
However, for purposes of diversification, Chainlink also looks like a good altcoin to buy at current prices. As smart contracts grow in adoption, demand for decentralized data will grow, and that's where Chainlink comes into the picture.
While no one can predict with certainty, Ethereum could trade at $6000 in 2025.
Due to solid adoption, and overall crypto growth, Ethereum could trade at $20k in 2030.
Ethereum is a fundamentally strong cryptocurrency and now has deflationary tokenomics. The odds are that it is an excellent cryptocurrency to buy today.
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.
