Ethereum Price Prediction, ETH Price Reach to $5000?

Ethereum is one of the biggest digital currencies out there, second only to bitcoin. ETH has long been hailed to be the next big thing in cryptocurrency, with one leaked report from banking giant Goldman Sachs suggesting it will soon overtake bitcoin to become the dominant figure in the market. The price of ethereum right now stands at £1,587.95, up 2.28 percent in the last 24 hours and with a market cap of £185.52billion, according to Coin Desk at the time of writing on July 25.

ETHEREUM will “continue to grow exponentially” as the coin sees “significant long term value”, according to one cryptocurrency expert.

Ethereum Overview

Ethereum Price Prediction, ETH Price Reach to $5000?

Will Ethereum emerge to stride to new highs anytime sooner? On a long term forecast what’s the destiny for Ether and its users? Everything about Ether, ETH price, updates and latest buzz is just a read away!

What Is Ethereum (ETH)?

Ethereum is a decentralized open-source blockchain system that features its own cryptocurrency, Ether. ETH works as a platform for numerous other cryptocurrencies, as well as for the execution of decentralized smart contracts.

Ethereum was first described in a 2013 whitepaper by Vitalik Buterin. Buterin, along with other co-founders, secured funding for the project in an online public crowd sale in the summer of 2014 and officially launched the blockchain on July 30, 2015.

Ethereum’s own purported goal is to become a global platform for decentralized applications, allowing users from all over the world to write and run software that is resistant to censorship, downtime and fraud.

Who Are the Founders of Ethereum?

Ethereum has a total of eight co-founders — an unusually large number for a crypto project. They first met on June 7, 2014, in Zug, Switzerland.

• Russian-Canadian Vitalik Buterin is perhaps the best known of the bunch. He authored the original white paper that first described Ethereum in 2013 and still works on improving the platform to this day. Prior to ETH, Buterin co-founded and wrote for the Bitcoin Magazine news website.

• British programmer Gavin Wood is arguably the second most important co-founder of ETH, as he coded the first technical implementation of Ethereum in the C++ programming language, proposed Ethereum’s native programming language Solidity and was the first chief technology officer of the Ethereum Foundation. Before Ethereum, Wood was a research scientist at Microsoft. Afterward, he moved on to establish the Web3 Foundation.

Among the other co-founders of Ethereum are: – Anthony Di Iorio, who underwrote the project during its early stage of development. – Charles Hoskinson, who played the principal role in establishing the Swiss-based Ethereum Foundation and its legal framework. – Mihai Alisie, who provided assistance in establishing the Ethereum Foundation. – Joseph Lubin, a Canadian entrepreneur, who, like Di Iorio, has helped fund Ethereum during its early days, and later founded an incubator for startups based on ETH called ConsenSys. – Amir Chetrit, who helped co-found Ethereum but stepped away from it early into the development.

What Makes Ethereum Unique?

Ethereum has pioneered the concept of a blockchain smart contract platform. Smart contracts are computer programs that automatically execute the actions necessary to fulfill an agreement between several parties on the internet. They were designed to reduce the need for trusted intermediates between contractors, thus reducing transaction costs while also increasing transaction reliability.

Ethereum’s principal innovation was designing a platform that allowed it to execute smart contracts using the blockchain, which further reinforces the already existing benefits of smart contract technology. Ethereum’s blockchain was designed, according to co-founder Gavin Wood, as a sort of “one computer for the entire planet,” theoretically able to make any program more robust, censorship-resistant and less prone to fraud by running it on a globally distributed network of public nodes.

In addition to smart contracts, Ethereum’s blockchain is able to host other cryptocurrencies, called “tokens,” through the use of its ERC-20 compatibility standard. In fact, this has been the most common use for the ETH platform so far: to date, more than 280,000 ERC-20-compliant tokens have been launched. Over 40 of these make the top-100 cryptocurrencies by market capitalization, for example, USDT, LINK and BNB.

How Many Ethereum (ETH) Coins Are There In Circulation?

In August 2020, there were around 112 million ETH coins in circulation, 72 million of which were issued in the genesis block — the first ever block on the Ethereum blockchain. Of these 72 million, 60 million were allocated to the initial contributors to the 2014 crowd sale that funded the project, and 12 million were given to the development fund.

The remaining amount has been issued in the form of block rewards to the miners on the Ethereum network. The original reward in 2015 was 5 ETH per block, which later went down to 3 ETH in late 2017 and then to 2 ETH in early 2019. The average time it takes to mine an Ethereum block is around 13-15 seconds.

One of the major differences between Bitcoin and Ethereum’s economics is that the latter is not deflationary, i.e. its total supply is not limited. Ethereum’s developers justify this by not wanting to have a “fixed security budget” for the network. Being able to adjust ETH’s issuance rate via consensus allows the network to maintain the minimum issuance needed for adequate security.

How Is the Ethereum Network Secured?

As of August 2020, Ethereum is secured via the Ethash proof-of-work algorithm, belonging to the Keccak family of hash functions.

There are plans, however, to transition the network to a proof-of-stake algorithm tied to the major Ethereum 2.0 update, which launched in late 2020.

After the Ethereum 2.0 Beacon Chain (Phase 0) went live in the beginning of December 2020, it became possible to begin staking on the Ethereum 2.0 network. An Ethereum stake is when you deposit ETH (acting as a validator) on Ethereum 2.0 by sending it to a deposit contract, basically acting as a miner and thus securing the network. At the time of writing in mid-December 2020, the Ethereum stake price, or the amount of money earned daily by Ethereum validators, is about 0.00403 ETH a day, or $2.36. This number will change as the network develops and the amount of stakers (validators) increase.

Ethereum staking rewards are determined by a distribution curve (the participation and average percent of stakers): some ETH 2.0 staking rewards are at 20% for early stakers, but will be lowered to end up between 7% and 4.5% annually.

The minimum requirements for an Ethereum stake are 32 ETH. If you decide to stake in Ethereum 2.0, it means that your Ethererum stake will be locked up on the network for months, if not years, in the future until the Ethereum 2.0 upgrade is completed.

Where Can You Buy Ethereum (ETH)?

Given the fact that Ethereum is the second-largest cryptocurrency after Bitcoin, it is possible to buy Ethereum, or use ETH trading pairs on nearly all of the major crypto exchanges. Some of the largest markets include:

• Binance
• Coinbase Pro
• OKEx
• Kraken
• Huobi Global

Ethereum Fundamental Analysis

Ethereum operates using decentralized blockchain technology to create Decentralized apps and also make agreements, called smart contracts that run on computer codes and can is operable without a third party intervention. Often referred to as Decentralized finance, DeFi, with powering Non fungible tokens, the proof of ownership remains at the mark for the network.

The Ethereum Blockchain currently accommodates over 2,60,000 different cryptocurrencies, 47 of which are among the top 100 by market capitalization. The network follows a peer-to-peer mechanism! You can easily make agreements through smart contracts, and shift money to anyone around the world!

Currently, the network is capable of processing just 15 to 45 transactions per second, which has been a major setback since the advent. While the upcoming altcoins have skyrocketing per sec transaction figures, Ethereum is still far behind. 

With Elon Musk and many other crypto celebrities calling off the PoW mining process because it generates high carbon footprints, the Network has planned to shift the same to PoS. The platform ensures the ETH 2.0 upgrade to be more scalable, secure, and sustainable. A 100% energy efficiency is one of the notable outcomes to expect!

Beacon chain, the mechanism behind the up gradation and the next phase of update would merge with the blockchain network and called the Mainnet. Being the most awaited phase, the transition might happen soon! On a successful launch, the network can process up to 100,000 transactions per second. 

Using ETH as collateral to yield other digital assets powered by the platform is gaining increased popularity among many users. Also, one can earn huge profits on staking Ether. Moreover, this helps to secure the platform and earn rewards.

Ethereum Price Prediction 2021

This year has been the bullish year for Ethereum, where it resumed trading with $737.71 on January 1 and surged touching its $1000 juncture in no time. The ETH price hit $2,000 in February’s cryptocurrency rally and moved back above that level in April. It then soared to a record high of $4,380 on 12 May 2021, a gain of 500% from the start of the year.

The market crashed on May 19 after tweets from Tesla (TSLA) CEO Elon Musk and reports of a cryptocurrency ban in China rattled the markets causing a short setback to ETH price where it fell to near $1,782.57 and slowly dipped further. After quickly recovering its losses the ETH price fluctuated in the range of $2,000 and $2,700 until the end of June.

The Month Of July loaded With Upgrades Seems to be Bullish for Ethereum. Scheduled to launch on 14 July, EIP-1559 is expected to change the way Ethereum charges transaction fees, known as gas prices. It will switch from its current auction mechanism, which has resulted in prohibitively high gas prices.

With further improvements, the advent of Ethereum 2.0, that promises the price may rise consistently throughout the year. However, if ETH Price manages to outgrow Bitcoin, it might smash a high of $4500 to $5000 this year-end. On an extended bullish possibility due to Elon Musk’s recent idea to bridge Ethereum with Dogecoin, the price may skyrocket above $5,000 by this year’s end.

Also, if Ethereum fails to improve its scalability and falls prey to any bugs, the ETH market can collapse with price dipping even up to $2417.88 by end of the year.

If Ethereum does not successfully launch new updates and delays the development like it is doing currently, criticisms may arise and so, the price may move to an average price of $3165.64.

Thus, By the end of 2021 Ethereum Price can hit Potential High above $5000 and Potential Low at  $2417.88

ETH Price Prediction 2022

If Ethereum hits the predicted high as this year closes, it may commence the year 2022 with the same bullish trend with a trading price between $4816.55 and $5000. In contrast, if it hits the minimum values as this year ends, the price will resume in 2022 being bearish and may be seen at $2428.96 by January 2022.

The price may surge significantly with certain variations throughout the year if ETH might concentrate more on its developments and scalability issues. If the network successfully upgrades ETH 2.0 matching users’ expectations, Ether’s price may hit as high as $15962.33.

If the network manages to carry over the current investors to the following year successfully, with no significant updates and usual buy and selling pressures, ETH might trade at $5311.98 by the end of 2022.

And if the market collapses and makes bears outgrow the bulls anytime, the price may plunge substantially and strike a low of $4629.12. However, it can recover quickly and hit the $5000 range in a short time span after the crash.

5 Years ETH Price Prediction

If the ETH ecosystem focuses on boosting the network ventures, it may concentrate on new projects, developments, and partnerships to enhance the Ethereum network. If scalability is up to the mark, and ETH 2.0 becoming user-friendly, by the end of 5 years, ETH Price is anticipated to hit $25,757.41.

With newer updates related to Ethereum 2.0 like abandoning the PoW, most investors are likely to stick to the network and let ETH trade at around $11,010.03 or more. However, in case of a possible crash occurs due to any possible regulations can cause uncertainty that may cause the ETH price to fall substantially to $8521.63.

What Does the Market Say?

1) WalletInvestor

According to WalletIinvestor’s algorithm based forecast, they have revised their algorithm based forecast for the coming year’s average price into $3416.140. They believe that Ethereum is highly profitable and estimate the long term earning potential for the crypto to be +71.34% in one year.

2) TradingBeasts

TradingBeasts predicts a reasonable prediction year on year without much volatility. The analyst of the platform predicted the price to hit $25415.14  which is a revised update of their previous prediction of $2513, by the year end.

3) DigitalCoinPrice

According to DigitalCoinPrice, Ethereum might steadily rise to $3591.69 by the end of 2021. In the coming year the price will surge to $4587.07, which is roughly twice its current price.    

4) LongForecast

According to LongForecast, Ethereum would cost between $3127 and $3627 by the end of 2021. The price change is estimated to be around 34% by December.

Our Price Prediction

Ethereum may continue the price rally and might reach newer heights. The altcoin would focus on enhancing the security of the users. According to Coinpedia’s formulated Ethereum price prediction, it may hit $5000.12 by the end of 2021.

On the other hand, price fluctuations, increasing FUD among investors, or lack/failure of updates can be a possible setback for the crypto, and thereby the ETH price may see a dip around $2416.70 by the year-end.

Using the table below understand what is possible in terms of highs and lows.

Historic Price Sentiments

2016

ETH began rising steadily in January 2016 and reached a price peak at $15 in March. But immediately after which, because of the Ethereum hard fork, the price fell two times lower.

For some months, the price of Ethereum fluctuated between $8 and $14. Ethereum was added to its list of backed assets in September by the Ledger Nano S hardware wallet, thereby allowing the coin to hit the $15 price.

Ethereum suffered from a DDoS attack on September 22 and this resulted in the network to get slowed down. This led to a prolonged downward trend that lasted until December. By the end of 2016, ETH’s exchange price had peaked at around $7-9.

2017

For Ethereum, 2017 was a bullish year as in the first two months, the coin made a solid run at $23. In March, the price of Ethereum pumped to $53 and then increased to $95 in the next month. Another price push happened in June, with the coin touching $400. This continued until mid-November when the price of Ethereum stabilized at the price range of $270-350.

2018

For Ethereum, 2017 was a bullish year as in the first two months, the coin made a solid run at $23. In March, the price of Ethereum pumped to $53 and then increased to $95 in the next month. Another price push happened in June, with the coin touching $400. This continued until mid-November when the price of Ethereum stabilized at the price range of $270-350.

2019

Ethereum was trading from $100-140 at the beginning of 2019. In April, the first upward trend began. Ethereum began to rise rapidly, tracking the price of Bitcoin and hit $300 in June. ETH was unable to retain these positions, though, and began moving back to its former price marks. Ethereum began increasing again in December 2019 and hit $280.

2020

 Ethereum continued 2020 with its price trading at $143.85 during January.  Progressively, ETH rose to $268.07 by February.  Later, the price of Ethereum declined to $117.48 by mid of March due to the Covid-19 outbreak which resulted in the major downfall of crypto assets. 

Further by the end of April, it had returned to its pre-COVID price and reached $200. With certain variations, Ethereum’s price spiked to $459.76 by September and further propelled to $609.75 by the end of November as the expansion of the price rally held by Bitcoin. Moreover, the much-awaited ETH 2.0 Beacon chain went live on December 01, and many expected the price would propel above $1000, yet in contrast, the price dropped miserably. However, at the end of December 2020, the ETH price recovered a little and traded at $706.14.

Source : Coinpedia, Coinmarketcap

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