Ethereum Price Prediction
As various Altcoins push to overtake ETH with promises of faster, more efficient, and more user-friendly transactions, Ethereum ETH will continue to trail behind Bitcoin – holding the second spot in the market even as we go into the second half-year 2021 and 2022. In this article we will demystify ethereum price prediction for 2021 to 2030
This is because exciting things are lined up for the second most popular cryptocurrency. And prominent experts and analysts have predicted ETH to skyrocket in the next few months. But before we get to the latest Ethereum price predictions from experts, let’s start with the basics of Ethereum.
Ethereum is a separate blockchain that has its digital currency, just like Bitcoin. Ethereum and bitcoin are two projects that have specific properties that correspond to each other. For example, both decentralized (i.e., no country or government backs Bitcoin or Ethereum); they’re both digital currencies built on blockchain technology. All transactions are fast, accurate, and transparent.
But, the similarities end here. Ethereum‘s technology goes beyond enabling fast digital transactions.
Ethereum offers intelligent contract technology in Dapps, which is a secure way of concluding digital contracts without any third party. Transactions on Ethereum are faster than Bitcoin’s, and its blockchain technology can handle more transactions than Bitcoin’s.
People purchase Ethereum on a speculative basis, investing in the crypto coin to make money from it.
Importance of the Network Effect
One of the advantages of Ethereum is the network effect. It is the most popular blockchain for smart contracts. However, before we dive into this further, it’s good to know the difference between Ether (ETH) and Ethereum; these two terms are often used interchangeably.
By saying Ethereum, we mean the blockchain and the network. All cryptocurrency transactions are recorded on a blockchain. These transactions are paid with ETH on Ethereum. i.e., the cryptocurrency that comes with Ethereum.
Ethereum is the whole system, while Ether is the associated currency.
A Little History of Ethereum
The price of ETH grew exponentially in 2017 and early 2018. Because many projects were started on the Ethereum network and were carried out through Initial Coin Offerings (ICOs), each project had its coin. And as an investor, you could participate in these projects by sending them ETH. Back then, ICOs were extremely popular – 2017 and 2018, and because you needed Ether for ICOs, the demand for them increased. That demand made the price rise to unprecedented heights.
The 2018 bear market was brutal on Ethereum as ETH lost more than 92% of its value – but it has since rebounded from the price that dropped below $100.
The Ethereum blockchain remains the most robust intelligent contract platform out there, and of the top 100 tokens subject to market capitalization, 96% are Ethereum-based. Also, of the 1,000 best tokens, 89% consist of Ethereum.
Two Important Developments in 2021
Two significant redefining developments can push the course of Ether to new heights. The first development is introducing a new algorithm called proof-of-stake, while the second one is the development of Defi.
Despite the renewal of Bitcoin’s historic high, with growing volumes and interest, crypto investors with a long-term planning horizon prefer Ethereum 2.0: the project already reached the TOP-30 in terms of capitalization.
Vitalik Buterin, on November 4, opened a deposit contract to create a liquidity pool for the Ethereum 2.0 network, making crypto investors have reserved 1.7 million ETH at the moment.
Image Source: etherscan
Although the Ethereum 2.0 blockchain upgrade is not currently presented on rating resources since it will take several years before the network is fully deployed, validators reserve funds in blocks of 32 ETH to participate in staking. They will receive a percentage of commissions for making transactions; at the moment, this reward is estimated at 8-13% per annum. The proof-of-stake algorithm will replace the less energy-efficient proof-of-work. The investors will receive new coins in exchange for old Ethereum in a 1: 1 ratio. A reverse transition is not possible.
Image Source: StormGain
Bitcoin grew by 233% at the end of 2020; at the same time, Ethereum soared by 404%. With the forecast of further superiority of Ethereum and a short period for making a profit, the manufacturers of mining equipment concentrated their efforts on creating more advanced ASICs.
Ethereum miners worldwide have about two years left before the network moves to the new protocol. But, the rise in the value of the cryptocurrency and its prospects are forcing market participants to join the arms race. This, coupled with the desire to receive a stable income from staking, on the one hand, and a short payback period for equipment, on the other, will keep the excitement around the cryptocurrency going, which will further increase the value of Ethereum.
A crucial development in recent times is the growth of Defi, which stands for decentralized finance and can be seen as a further development of the dApps mentioned above. Defi is a service provider that provides loan services on the Ethereum blockchain in which only an intelligent contract is required for the export.
For instance, suppose you have 100 ETH left, you can offer it on a kind of marketplace as a loan. And then someone else can agree to this; the conditions are poured into a smart contract, and the borrower offers collateral. Nothing more is needed.
Many services like this ensure that you receive high interest on your loaned ETH. And by this, we mean interest that our parents talk nostalgically about.
Defi, however, has not been around for a very long time, but it’s expected to grow into an independent industry. Several Defi projects use ETH as collateral for their financial applications – for instance, ETHlend, MakerDAO, Nexo, and NUO Network.
Defi will only continue to grow, and as it grows, the companies that hold ETH as collateral will also increase. So, it’s a great idea to keep an eye on Ethereum updates!
The Introduction of Sharding
Sharding addresses the problem by distributing data and transaction processing functions among different nodes within the network. It’s the process of dividing the Ethereum network into many areas, known as “shards,” allowing many transactions to be processed simultaneously. The Proof-of-work requires all full nodes to store the Ethereum network’s data, and the algorithm used to reach consensus is very computational.
Ethereum in 2021
Like the rest of the market, Ethereum is at the center of Bitcoin’s price action. So, whenever Bitcoin begins a bull run, ETH can also hope for it.
With the current covid-19 pandemic outbreak, the nations all across the globe hibernated for a few months. It negatively impacted cryptocurrencies, nose-diving Bitcoin to go downhill as the market recorded even 40% daily losses.
The situation quickly stabilized, and Bitcoin, as the standard-bearer, got the crypto market back on track.
As long as Bitcoin is taking the lead, ETH will usually do the same. Ethereum will increase its USD-denominated value thanks to the general rise in crypto prices.
What Experts Predict
Many Ethereum fans were excited about the launch of the Ethereum derivatives on the CME on February 8, 2021. A popular ETH proponent, Tyler Smith, reminded his audience that the previous crypto bull run was initiated by listing Bitcoin futures on the CME. And that Ethereum derivatives on the CME will also make ETH soar.
Also, a prominent ETH supporter, Ryan Sean Adams, pointed out that the listing of Ethereum futures on the CME would provide the world’s most prominent financial institutions with a way to invest in ETH in a safe and regulated manner. These predictions have seen paving the way for Ethereum to hit a new record in 2021.
A massive bull run of Bitcoin that recently led to the surge of the BTC price to reach its new ATH has also positively affected the Ethereum price. Ethereum’s price passes $625 after the announcement of ETH 2.0 launched in December 2020. And by April 2021, following another bull run of Bitcoin, Ethereum surpassed its ATH of $1476.06 mark of January 25, 2021.
Several factors led to the surge. No doubt that the Bitcoin uptrend supported the whole cryptocurrency market. Although Ethereum 2.0 was launched in December, we can say that the event also has a long-term effect on the price in 2021.
ETH Technical Analysis
First, let’s look at the ETH prediction with a technical analysis of the long-term timeframes of the ETH/USD price chart.
This monthly chart of ETH/USD shows a clear bullish trend, starting from March 2020. the news about Ethereum 2.0 in the past four months was a supplement to the generally bullish sentiment of the cryptocurrency market, featuring the ETH/USD with the fastest growth rate over the past few years.
Notice the blue dots in the chart. It marks the highest trading volumes and corresponds to the substantial price movements. Also, as you can see from the above chart, significant trading activity in December 2017 corresponds to the long green candlestick, forming a resistance level around 1415 USD – marked with the green line in the chart.
This was also accompanied by a sharp spike in traders’ activity in early 2021. This candlestick broke out the support level at 1415 USD as the following bar consolidated above the indicated level.
In all, these signals mean a solid bullish trend.
ETH/USD price prediction for the next three months
ETH looks overbought in the market, indicating that any visible bearish movement could start a deep correction in the long term.
Comparing the Ethereum price movements in 2017/18 and 2020/21, there should be a deep correction within the next three months. A forecast suggests that there might also be a local bearish trend towards the channel’s lower border, with a possible breakout.
This scenario is a negative one; however, other things being equal, the fundamental drivers in the cryptocurrency market have changed a lot over the past few years and cannot rule out the pessimistic outlook at all.
By analyzing the sizeable bearish wave of the 2018 projection, I could define a level to buy Ethereum around the local low of 530 USD – 550 USD. One neutral suggestion is a correction towards 1415 USD, followed by a rebound up and a new Ethereum price movement down to 1000 over the next three or four months.
Monthly Ethereum price forecast for 2021
Let’s consider the technical analysis of fractals to provide a realistic Ethereum Forecast and define the price targets for 2021. Looking at the breadth of the Bollinger Bands, the price fractals, and the wave patterns outlined reference projections for each month of 2021.
Based on the most recent market moves and the ETH/USD, the support level at 1415 is already being tested. Indicating that the correction has begun.
Following the above trading plan, the ETH USD pair is expected to touch the low in the range of 500 – 1000 dollars in summer.
Unfortunately, I can’t suggest the exact low, but the correction will proceed into a sideways trend with a long-term consolidation.
On the other side, it will be irrelevant to plan purchases below 800 USD – 1000 USD
All the predictions this year suggest that there should be a second growth wave and an attempt to break through the all-time high (ATH).
The table below shows the likely ranges of the Ethereum future price:
[table id=2 /]
Ethereum Price Prediction for 2022
ETH is optimally positioned to remain a top cryptocurrency, right behind Bitcoin. If Bitcoin gets an induced bull run, Ethereum can hit levels above $4,000.