Ethereum Price Prediction 2021
Investors’ strong faith in Ethereum and its potential even allow some to say that the asset may displace Bitcoin from its leading position in the future.
Let’s see the Ethereum price predictions to estimate the coin’s future in numbers. We will consider the short-term forecasts for the next several months, as well as the long-term predictions for 2022 and beyond. However, please remember that the price prediction mechanisms are not perfect and can’t allow for making precise forecasts. Don’t consider this article as investment advice and do your own research.
The Value of Ethereum Backing Its Price
The roots of Ethereum as a flagship altcoin
Ethereum was launched in 2015 — but its whitepaper was written back in 2013, only 4 years after Bitcoin had emerged. Vitalik Buterin, the co-founder of Ethereum, learned about the existence of crypto as early as in 2011, and that pushed him to reflect on the nature of decentralized currencies on the pages of Bitcoin magazine that he founded. Very quickly, Vitalik realized all the limitations of Bitcoin (low throughput and scalability, high fees, and limited functionality) and started thinking about building a platform where it would be possible to implement smart contracts and deploy decentralized applications. This would allow users to exchange value in a trustless manner and let businesses leverage blockchain for a wide variety of use cases.
Such a vision turned out to be more than successful. In 2017, Ethereum became the epicenter of the ICO boom, when hundreds of new tokens were proposed. This was when the mass audience learned about crypto, and the total market cap of all digital assets was breaking records. However, this was only the beginning.
The amount of money being raised by initial coin offerings throughout 2017. Image source
In 2020, the decentralized finance domain began to skyrocket, and after institutional investors embraced crypto by the end of the year, a major bull run took off and pushed the Ethereum price up. In 2021, the growth of the №2 cryptocurrency was fueled by the development of a huge NFT marketplace segment, continuing growth of DeFi, and boom of GameFi tokens like Sandbox and Axie Infinity — the new big trend in crypto. The vast majority of NFT, DeFi, and GameFi tokens run on the Ethereum blockchain.
What should push the Ethereum price further?
One of the hottest topics in Ethereum and the whole crypto market in general is the transition of the ETH blockchain to the Proof of Stake consensus and other upgrades known as Ethereum 2.0. Together, they will significantly raise the platform’s throughput (from 15-20 transactions per second to possibly 1 million), will lower fees, and make them more predictable. The upgrades have already started in 2020 (Berlin and London hard forks) and had a positive effect on the ETH price. The Proof of Work phase-out will make Ethereum more energy-efficient and environmentally friendly, which should also positively affect its long-term sustainability.
The upcoming fees reduction is not valuable in itself. After Binance Smart Chain was launched in 2020, many users and DeFi platforms migrated there: fees on BSC are always much less than $1, whereas in Ethereum, they are unpredictable and vary from $15-20 to $80-100. This puts Ethereum in strong competition, but if the platform manages to reduce fees, it will regain indisputable leadership. This is because Ethereum has some powerful advantages: it’s much more decentralized than Binance Smart Chain and has a bigger user base and network of nodes than competitors like Solana and others.
With all these facts, it’s good to remember that the growth of DeFi has not been exhausted yet, and the NFT and GameFi domains are also under active development. Given that Ethereum may form the basis for many more yet unexplored use cases and economies, the increase of its scalability, throughput, and energy efficiency make it one of the most promising assets of today.
Ethereum Price in 2021
As already mentioned, the general crypto bull run fueled the Ethereum growth in 2021. But let’s look at the numbers.
Ethereum started the year at $743, and by January 19, it already broke the $1417 all-time high set in 2018 that stayed unreachable for 3 years. On May 12, the coin hit the new ATH at $4,362.35. After a strong correction with a $1730 dip in June, ETH returned to the above-$3,000 level by August. Currently, Ethereum is trading at $3,358, which is roughly 77% of its ATH.
Ethereum Price Prediction 2021
This part will be of the highest interest for those who prefer trading or short-term investing. If you put money in Ethereum and it grows in the upcoming months, you might make a profit by Christmas already. However, not all Ethereum price predictions for 2021 are that positive.
According to the Finder comparison platform, 27 experts from their panel predict Ethereum to hit $4,596 by the end of 2021. This forecast is close to the same one made this April and 240% higher than the 2021 end-of-the-year prediction made in December 2020. The Finder’s panel consists of crypto business executives and academics.
Quite a similar prediction comes from the Coin Price Forecast service: they expect Ethereum to reach $4,686 by the end of this year. The Long Forecast platform, however, is far not as bullish: they give Ethereum $3,600 by the end of October, $3,685 by late November, but only $3,219 by the end of December. TradingBeasts platform is the same as pessimistic: it supposes ETH will be at $3,014.6 by the end of November and only $3,043 by late December 2021.
Ethereum Price Prediction 2022
ETH predictions for 2022 are mostly bullish. Wallet Investor expects the coin to hit $5,795 in 1 year from now — by October 2022. According to Coin Price Forecast, Ethereum will reach $6,795 by mid-2022 and $7,101 by the year’s end, which is +111% to today’s level.
Here’s the Long Forecast Ethereum price prediction 2022:
TradingBeasts platform, however, is not as positive:
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Ethereum Price Prediction 2023 and Beyond
Here’s what Coin Price Forecast predicts for Ethereum in the long-term:
Wallet Investor gives the coin $15,550 in a 5-year perspective. Long Forecast expects ETH at $9-14k in 2023, $7-12k in 2024, but only $3-5k in 2025.
Remember that most Ethereum price predictions are based on mathematical models and can’t foresee everything. Unexpected regulatory crackdowns, high-profile personalities’ comments, and the network malfunction (which is highly unlikely for Ethereum, though) can affect the ETH price all of a sudden. However, there are also positive factors of this kind such as the network updates, good news from the regulators, second-layer solutions implementation, and so on.
Ethereum is considered one of the most promising crypto assets of today. Maybe it won’t please you with a 100x growth like some of the coins — rather, a stable price increase backed by a robust use case, strong team, and a promising roadmap is possible. However, some of the platforms give bearish predictions, too, so please remember to assess the risk and don’t invest more than you can afford to lose.