This year, Ethereum platform will see its first anniversary on July, 30th. During the past five years, it has steadily held its position on the market, being second only to Bitcoin. Ethereum and its native currency have a lot of potential to grow in the years to come, and today we’re going to look at price predictions for 2020 and the following years to show you why.
What is Ethereum and ETH?
Ethereum is a decentralized platform that was designed as a “global computer” by Russian-Canadian developer Vitalik Buterin. It was built to support decentralized applications backed by the smart contract technology that lets the users strike agreements solidified in code without any intermediaries. Ether (ETH), nowadays often called Ethereum, is the native currency of the platform, used for paying transaction fees as well as a means to sustain the network.
Ethereum is, without a doubt, a mammoth on the market, despite being around for less than some other coins. It has been sitting at the second rank by market capitalization as soon as it reached it. Ethereum ROI at the moment is an impressive 6,575,84%! The lowest known price, $0.420 was registered on October 21, 2015, back when Ether was still new, but it gained over the course of time and by January 13, 2018 it reached its historical maximum of $1,432.88 USD.
Five years worth of data is more than enough to track market behaviour and notice some patterns and consistencies. That is why historical analysis is often applied to predict the movement of the price in both short and long terms.
A brief history of Ethereum Price Performance
Rise to prominence: 2017
The first few years, as we can see, were necessary for the project to take off the ground. Unfortunately, even this period of relative stability was not without incidents. The first decentralized autonomous organization, Genesis DAO, was announced in May 2016. It was supposed to become a venture capital fund to back building on Ethereum and gathered 12.7 million ETH – worth around $150 million USD at the time! But on June 17, a hacker was able to drain about $50 million USD from the DAO, using a loophole in the smart contract. This has dealt a damaging blow to the Ethereum reputation and ETH price, which dropped by more than twice that day. The damage control attempts, which included altering the blockchain, alienated a part of the community that launched Ethereum Classic, an ETH fork.
Prior to 2017, Ethereum was pretty much in development, until 2017, when the first smart contracts were finally ready to be put to work. The businesses that were launching on the platform were mostly start-ups, and many of those have relied on Initial Coin Offerings to take off the ground. ETH was necessary to be able to purchase tokens on the platform, so, obviously, investments came pouring in, and the Ethereum price started to rise sharply.
2017-2018: The year of ICOs and market correction
The bull run that started in April 2017 continued for the whole year. ICOs and dApps like CryptoKitties were growing, which made the scalability issues painfully apparent. The first major market correction happened as early as January 16, 2018. Since then, the downward trend has been prevailing, though not consistently. The surge and a sudden correction were anything but pump-and-dump, though, as in 2018 Ethereum developers were working on scaling the network and its adoption as hard as never before.
2019 – present: back on track
Since late 2018, Ethereum’s price has entered the $100–$200 corridor which has rarely been breached. While the price stabilized, the platform was covering more and more use cases: it found application in DeFi with stablecoins. Decentralized exchanges powered by smart contracts gained traction, and the blockchain gaming sector grew.
Overall 2020 so far has been pretty decent for ETH. Starting at around $130 USD, to this date, it has gained over 50%. Right now it is being traded at $196,57 USD, with the total market capitalization of $21,785,845,344 USD (according to CoinMarketCap at the moment of writing).
What can influence the price
The next big update to the whole ecosystem, Ethereum 2.0 in current circumstances can create enough traction to influence the ETH market price. The roadmap for the years to come has been recently published by Vitalik Buterin, highlighting the solutions to the network’s scalability issue. Ethereum 2.0 is also going to finally introduce Proof-of-Stake in place of PoW, which will give even more incentive to hold ETH and will make issuance less energy-consuming.
Ethereum platform is one of the most reputable ecosystems that enable DeFi operations, in which a lot of proponents see a promise of the future value increase. More than that, ETH is simply needed to pay the “gas” fee for the transactions on the platform.
In addition, stablecoins are already attracting a lot of attention to the network. Some of the largest by market capitalization stablecoins at the moment are USDT (Eth), USDC, BUSD, PAX and TUSD, all running on Ethereum platform. This March, while the market was massively volatile, stablecoins saw an increase in issuance and circulation. Remember the 2018 and the ICO surge that made ETH price skyrocket?
Just recently, a precedent has been set, when Shenzhen court ruled that ETH is, in fact, property with economic value. Such statements have been made before regarding Bitcoin and other digital currencies. With more authorities recognizing the digital market, there are more opportunities for corporate and institutional adoption of cryptocurrencies. More investments mean more market capitalization, which in turn means increase in value, first and foremost for the major currencies, like Ethereum!
What Do Experts Think
Traders of FXStreet resource point out that Ethereum returns on investments this year to date exceed that of Bitcoin as much as by 10 times.
YouTuber Guy of CoinBureau in his Ethereum 2.0: Latest Updates For 2020 video analyses the upcoming platform update and comes to the conclusion that it will certainly improve the value of Ether. His point of view is shared by Michael Yuan of OpenBay and Second State, and Robin Singh of Koinly.
#ETH on Twitter
All eyes are on the psychological barrier of $200 once again.
Being bullish is fun but being bearish is also needed.
Ethereum Price in 2020
There is still two-thirds of the year ahead of us, which means all the price predictions for Ethereum in 2020 still hold up.
At the moment of writing, ETH is experiencing a bullish trend, and a recent flip from the psychological barrier at 200MA (on ETH-USD market) with other circumstances can be interpreted as a signal of a possible bullish movement for the recent future. Nevertheless, predicting for the short term is still complicated by such events as Bitcoin halving, expected in three weeks, and the global COVID-19 pandemic.
BraveNewCoin technical analysis concludes that the next few months might break the neutral trend for ETH/BTC and see a start of a bullish trend akin to the one observed in 2018. For the ETH/USD market, the psychological barrier for the nearest future might move up to $300 USD per coin.
Longforecast is a team of analysts that apply technical and historical approaches to predicting the price. The resource provides data for the next four years. So, what could the price of ETH be later this year?
According to them, the psychological barrier of $200 USD will be broken through by the end of April, and the value for the next month will be increasing. However, in summer the trend will flip only to be followed by a steep increase by August. The rest of the year is claimed to see a return to the current price levels.
Bitdegree Ethereum Price Prediction
Bitdegree author kingray sums up different analyses and comes up with a prediction of their own. They base it on the platform opportunities and foreseeable developments. While admitting that network capacity is indeed the problem that diminishes the value of ETH, the author insists that the price might increase as soon as by the end of this year, as long as the scalability solutions are implemented.
Ethereum price in the next years
Coming back to Longforecast, here is what they have to say about the next few years:
2021 is going to be not very different from 2020, though the numbers seem even lower than this year’s statistics. What’s more, the year might close at just $106 USD per coin, and following that we might even see ETH stay in double digits for more than a year, recovering only by early 2023. While this forecast is not very optimistic, bear in mind that it is based only on historical data and does not take any external influences into account.
YouTuber TechTipsToGo is pretty bullish on ETH, on the other hand. In his video, Ethereum Price Prediction for 2021, he explains this point of view by the applicability of the Ethereum network in DeFi. He even makes a claim that he can certainly see Ethereum beating Bitcoin’s market capitalization and soaring to $10 thousand USD by 2022, should the current market trends persist.
Another resource, Prime XBT cites a couple of even more promising analyses. According to them, if Ethereum will be able to breach the resistance level that is projected to be $350 per coin, an upward rally that might take it up to $35,000 USD in 2021!
Further projections of the growth corridor coupled with the prospects of Web 3.0 lead the authors to the conclusion that Ethereum might reach unseen highs of $100,000 USD in 2024 and, eventually, $1 million USD. Now that is a bold prediction!
CryptoGround uses deep-learning algorithms to analyse historical data and provide a forecast. Their algorithms also found that Ethereum price is moving upward, and the projections they are showing today are the following:
In other words, in 2025 ETH is expected to override its all-time high and increase in price six-fold. And that is only based on historical data! In a similarly optimistic forecast that points to the increase in value through the wide use of the Ethereum network, Crypterium expects ETH to reach $10 thousand USD by 2025.
Ethereum Price in more distant future
Given how volatile the cryptocurrency market is and how difficult it is to predict the prices even in the short term, very few people dare to make claims for farther than five years in advance. Trying to see for as far as ten or twenty years is as good as a guess.
Jai Pratap of Coinounce gives his estimation of over $5 thousand USD per ETH in 2030, seeing the potential in the wide-spread use of dApps.
As for the more distant future, like 2050, it is only safe to say that 1 ETH will be worth 1 ETH, as the joke goes. However, there might be more to that joke, since for all we know, cryptocurrencies might actually replace fiat currencies by then, and Ethereum with its smart contract technology, dApps and tokenization might as well be the top contender.
ChangeHero’s Ethereum Price Prediction
The general sentiment surrounding Ethereum in the nearest future seems to be quite bullish. Most of the influencers and experts are weighing in on the technical capabilities of Ethereum platform and the adoption of the technology into the price. It is apparent that with the arrival of Ethereum 2.0 and Proof-of-Stake, the changes in price will follow, and it’s logical to conclude that the trend will take it upwards.
Don’t forget about the upcoming halving of Bitcoin, which is going to influence the whole market for the next six to twelve months at least.
We also think that price will soon break the sideways trend and increase, but it’s better not to expect the moon yet. Ethereum can find many more applications that we cannot imagine today, so we agree with the experts that recommend it as a long-term investment rather than a tool for speculating in the short term.
We hope we could provide some insight into what to expect from Ethereum in the next few years. If you are convinced that now is the time to invest in ETH, here’s a friendly reminder that you can easily exchange your crypto to ETH without signing up on ChangeHero, and even buy or sell it with a credit or debit card.
We hope you found the article interesting and informative! Do you agree with the predictions we collected? If you want to discuss them, feel free to do so on our Twitter, Medium, subreddit, Facebook and on Telegram!
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This article is not a piece of financial advice. No price prediction is guaranteed to provide exact information on the future price.
When dealing with cryptocurrencies, remember that they are extremely volatile and thus, a high-risk investment. Always make sure to stay informed and be aware of those risks. Consider investitions in cryptocurrencies only after careful consideration and analysis and at your own risk.