Ethereum price prediction: Is a bullish trend around the corner?

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Ether is showing signs of recovery after the recent crypto crash

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Ethereum has been struggling since reaching its all-time high in November 2021. Along with Bitcoin and the wider crypto market, Ether has been vulnerable to the recent crypto crash.

It has recently showed signs of recovery and experts think this could be the start of another bull run. But not everyone thinks it can last in the long-term. 

From the Ethereum whitepaper

The Ethereum introductory paper was published in 2013 by its co-founder, Vitalik Buterin. The network was created to take cryptocurrencies further than just a store of value. The Ethereum team wanted to develop greater utility.

Since the project’s official launch in 2015, it has spearheaded the decentralised finance industry with myriad projects built on its network. The blockchain also made the use of non-fungible tokens (NFTs) mainstream through the ERC-721 token standard.

The latest whitepaper said: “What is more interesting about Ethereum, however, is that the Ethereum protocol moves far beyond just currency. Protocols around decentralised file storage, decentralised computation and decentralised prediction markets, among dozens of other such concepts, have the potential to substantially increase the efficiency of the computational industry and provide a massive boost to other peer-to-peer protocols by adding for the first time an economic layer.”

The whitepaper concluded: “Finally, there is also a substantial array of applications that have nothing to do with money at all.”

Ethereum’s all-time high

Ethereum reached its new high after the expiry of options contracts worth $1bn (£747m). There was motivation for the bulls to keep the price above $4,200, as analysis showed that this would result in more than $200m in profits. The strike price did vary, with some bulls placing optimistic bets at $5,000.

The options expiry date was not the only driver of the Ether price. The launch of the first Bitcoin futures has paved the way for Ether alternatives. The CME group launched its own Ether future in February 2022, and it was met with high demand. Trading volume exceeded $30m within the first day.

The Ethereum blockchain had seen more good news in November, as a new update was activated successfully. The update focused on upgrading validation processes on the network, taking steps for the blockchain to shift towards a proof-of-stake model in 2023 – originally scheduled for 2019, the launch has been pushed back on several occasions.

Ethereum’s busy November reflected a period of massive growth for the blockchain. Total transaction fees surged from $321m in Q3 2020 to $1.96bn in Q3 2021, according to analyst Ben Giove’s Bankless newsletter. The total transaction value also grew, reaching $536.48bn in Q3 2021, a year-on-year increase of 398%.

But these highs did not last for Ether, as December presented new challenges and the cryptocurrency fell to a low of $3,628 by the end of the year.

Is another breakout on the cards for Ether?

The ETH price had a weak Q4 across the board, which spelt trouble for the crypto markets. By 22 January 2022, the coin was trading at a low of $2,417.68. However, a slight recovery was made and on 7 February the coin was up 4% from its previous close, at $3,128.22.

Ether has managed to continue this momentum into the following months. It reached a peak of $3,573.96 on 3 April, but soon crashed. After the collapse of Terra’s ecosystem, shockwaves were felt by the Ethereum cryptocurrency. For the first time in 10 months, it dropped below the $2,000 mark in May.

The downfall of the second largest crypto did not stop there. It was victim to another crash the following month with its price plummeting to a low of $896.11 on 18 June. Ethereum has slightly recovered since then. At the time of writing, on 29 June, ETH was trading at $1,132, up 5% for the previous seven-day period.

Rakesh Upadhyay, a trading expert and Currency.com contributor, noted this recovery and argued buyers are attempting to build up the price. He wrote: “If buyers push the price above $1,300, the recovery could pick up momentum and the pair may rally to $1,500.”

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However, he also stated: “The bears will have to sink and sustain the price below $880 to signal the start of the next leg of the downtrend. The pair could then decline to $680.”

FX Street similarly pointed out the bullish signals and gave an optimistic target of $2,500 this summer. In the short term, it forecasted another wave between the $1,400 and $1,750 bounds.

Yet, once the rally looses momentum, “a three-wave pullback will occur, re-routing towards targets between $1,400 and $1,200” reported FX Street.

Ethereum 2.0

There is a transformation taking place on the Ethereum blockchain. It is shifting towards a proof-of-stake model, which it hopes will reduce gas fees and energy usage, while dramatically improving transaction speeds. This migration is well under way, and a new launch date has been given of 2023.

The Ethereum 2.0 update is predicted to have a positive impact on Ether’s price. Decrypt noted: “More scalability means more usage, which, in turn, means more demand. Which – at least in theory – should propel the price of Ethereum to new heights.”

The billionaire Mark Cuban recently told Fortune that he was bullish over Ethereum because of the migration to proof-of-stake. He was especially optimistic because the upgrade will turn Ether into more of a deflationary cryptocurrency, as there are plans to reduce the supply by 5% every year.

Surojit Chatterjee, chief product officer at Coinbase, was similarly optimistic about the upcoming Ethereum updates. He said major Ethereum scaling improvements are coming soon, and that the blockchain would see substantial growth during 2022.

Ethereum price prediction

An ETH price prediction varies depending on who you ask, but there is a consensus that the bullish trend will continue. A panel of 50 fintech specialists at Finder gave their Ether price prediction and forecast, with more than half (61%) believing that now is the time to buy, while a further 32% think you should hold.

The panel vastly agreed that the move to proof-of-stake will have a positive effect on Ether’s price. More than two thirds (67%) said it will increase in value, with only 15% suggesting it will dip.

Joseph Raczynski, technologist and futurist at Thomson Reuters, who sat on the panel, was one of the many optimists about Ethereum 2.0. He said: “This could have an explosive effect on the token. People have been waiting for this for years. It should be far more secure, 99% more energy-efficient, and deflationary. If that isn’t the trifecta of potential, as a leading blockchain, I don’t know what would be.”

Despite the recent crash, WalletInvestor describes Ether as an “awesome long-term investment” in its ETH price prediction . Its Ethereum price prediction for 2022 suggests it will surpass $2,000 in October. Its prediction for the end of 2025 is that the cryptocurrency will come close to hitting $7,000.

The DigitalCoinPrice Ethereum price prediction for 2025 is less optimistic, reckoning the cryptocurrency will be worth only $2,189. It goes on to forecast Ether will hit $5,000 by the beginning of the next decade.

CoinPriceForecast says Ether will climb from $1,087 by the end of 2022 to $1,568 at the end of 2025. Its Ethereum price prediction for 2030 is $2,233.

FAQs

It might be. Finder said if the price trend continues, Ethereum could be worth $10,000. WalletInvestor’s ether price forecast says the coin could reach $2,000 in October 2022, and should be worth more than $6,000 in 2025.

Remember, ETH price predictions can be wrong, so always do your own research before investing.

It depends. Rakesh Upadhyay said Ether’s price analysis shows investors are starting to be bullish over the cryptocurrency with a rally to $1,500 on the cards.

Be careful, as the cryptocurrency has shown it is prone to volatility. Never invest more money than you can afford to lose.

Potentially. Remember, prices can go down as well as up and Ethereum is prone to volatility, so only invest what you are prepared to lose.

An Ethereum price prediction for 2022 from WalletInvestor suggests breaking that key level will come in 2025, whereas DigitalCoinPrice suggests bulls will have to wait until 2030.

However, predictions can often be wrong, so always do your own research before making a decision to invest.

Further reading

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