Developed in 2015, Ethereum is a well-known cryptocurrency. It is the second-largest by market value and experienced a strong bull run in 2018, reaching $4800 in November. Even though prices have fallen, many investors are confident that ETH will have another massive gain on par with or even greater than 2021.
In this post, you can see the forecast of the price of Ethereum based on the past performance of ETH and its potential for future development.
What is Ethereum?
Vitalik Buterin built the Ethereum network, which has digital currency and smart contracts, in 2013. But in 2015, ETH made its market debut formally. The platform enables users to create decentralized applications (Dapps), which can be used for hosting applications or accepting payments worldwide. Ethereum’s significance in the cryptocurrency ecosystem has been further emphasized by the emergence of numerous highly successful tokens within the Ethereum network. Go URL to learn more about ETH and other cryptocurrencies.
History Of Ethereum Price
Is Ethereum a wise coin to purchase right now? It’s not surprising that investors are placing significant bets on Ethereum, given its recent phenomenal growth. After Bitcoin’s price halved in 2020, Ethereum began to gather traction after a protracted period of stagnation in 2018 and 2019. The fascinating thing is that most alternative currency markets remained idle even after the halving. One of the few that accelerated the momentum was Ethereum. Ethereum had grown by 200% since its 2017 peak by the end of 2021.
Similar to all other cryptocurrencies, the price of Ethereum has been on a rollercoaster since it first appeared. Ethereum experienced a price increase when it was released in 2015, then fluctuated for the rest of the year. However, in March 2016, ETH reached a high of $15.20 after entering a bull market in January 2016.
But as is typical in the world of cryptocurrencies, this surge was followed by a severe decline in price, during which Ethereum lost more than 50% of its worth. ETH was worth $8 at the end of 2016.
Near the end of January 2018, Ethereum experienced a bear market similar to those seen during earlier crypto bull runs. Ethereum hit a low of $97 during the two-year bear trend, which was revealed in 2020 when the lockdowns were disclosed. This significant correction, nevertheless, was only temporary in March 2020. By September 2020, the price of Ethereum had recovered in a V-shape, reaching $481.
After then, up until November 2020, Ethereum’s price momentum began a consolidation phase. Ethereum entered a fresh, vigorous bull surge in November 2020, reaching all-time highs of $4800 in November 2021 as a result of a fresh wave of buying interest.
The price of Ethereum, like all other cryptocurrencies, commenced a bear run after reaching an all-time high of $4800 in November 2021, and it has continued throughout the majority of 2022.
What Drives The Price of Ethereum?
- To increase demand for cryptocurrencies, media coverage is quite essential. Most mainstream media covers Bitcoin, but few have yet to make Ethereum widely known.
- The overall crypto market is impacted by the price of Bitcoin. Other tokens, including Ethereum, are probably going to be bullish when Bitcoin is.
- On Ethereum’s blockchain, high transaction volumes result in higher transaction fees. These charges go to the miners of Ethereum, who frequently exchange their tokens for cash and therefore increase the available supply of Ether. Due to the fact that you must hold Ethereum to pay transaction fees, demand for ETH tokens increases when fees are greater.
- The Ethereum network has been upgraded with ETH 2.0. With this idea, Ethereum can be staked to generate interest. The ETH 2.0 network, however, is at its prime right now. However, it’s claimed that more than $1 billion worth of ETH is staked. It has the effect of reducing the token’s market supply.
- Another factor that may have a significant impact on Ethereum’s price is growing competition. The Ethereum-like Binance Smart Chain is one of these rivals. However, it substitutes BNB for ETH when paying transaction fees. Additionally, networks comparable to Cardano and Neo are emerging, among many others.
Future of Ethereum Price
Cryptocurrency prices are anticipated to rise over the next four years, and ETH is leading the pack of alternative currencies. After breaking out of its post-bear market trading range in the middle of 2020, Ethereum is likely to rise to greater heights during the following few years.
It is clear that ETH prices participated in a protracted bottoming process that started in the latter part of 2018 and lasted until the middle of 2020. The breach above $300 on high volume in ETH indicates that a new bull market is likely to begin soon.
Given the backdrop of unrestricted access to credit from the central bank and government spending initiatives, ETH prices may be able to increase to levels that are currently inconceivable.
The acceptance of cryptocurrencies by institutional investors as a stand-alone investment is one of the most significant elements influencing the phase shift in the cryptocurrency markets. Although Bitcoin has long been the preferred cryptocurrency among investors, huge investors from established markets may not share the same views on decentralization.
These investors, however, are more likely to choose growth models and reward platforms that allow for innovation. In summary, ETH is the ideal platform for investors who want to hold a token as money and profit from the network’s expanding use by outside developers with fresh concepts.
The cryptocurrency markets are still very erratic. Although the Ethereum price estimate for a year from now appears promising, the road to those higher prices will undoubtedly be littered with swift moves downward.
Bull markets frequently see swift corrections, and given that ETH is probably about to embark on another bull run, the markets will likely occasionally experience substantial declines.
Without a doubt, institutional investors view ETH as a comparable asset to Bitcoin because it is one of the most popular tokens worldwide. Over the coming years, ETH should have buying support since more seasoned investors are moving into the world of digital assets.