In a sea of cryptocurrencies, Ether needs no introduction. Bitcoin’s closest rival, ETH boasts a massive fan base, vibrant community, and strong technical fundamentals. Despite its lackluster performance in 2019, Ethereum still holds a special place in investor portfolios.
In the past year, Ethereum has survived in the face of fierce competition. If hard folk transition pushed it down, the DeFi boom shored up ETH at an inopportune time. A series of higher lows does help keep alive the investor interest. The highly anticipated proof-of-stake transition and Ethereum 2.0 are spicing things up in 2020.
Savvy crypto traders are confident that ETH price is set to make a comeback in the 2020 altcoin season. So, do you want to understand the nitty-gritty behind ETH price movements? Let’s dive into Ethereum price prediction trends for 2020 and beyond.
Before the crypto bubble burst in 2017, ETH price was driven by the performance of ERC-20 tokenized projects. These tokens raised ICO capital fairly easily due to crowdfunding. Therefore, ETH price skyrocketed because token investments and trading were only allowed via an Ethereum exchange. ETH price touched $1,448 within 24 months powered by this ICO bubble.
The crypto bubble popped in late 2017 and many Ethereum-based crypto projects came crashing down taking the ETH price down as well. The crackdown on illegal ICOs exacerbated the fall further. However, the downfall is attributed to the incessant ICOs and not to ETH’s fundamental technical potential.
ICOs aside, positive ETH developments have been powering the price since 2017. It has outperformed other altcoins and promises strong long-term returns. Today, ETH price is benefitting significantly from the booming DeFi market and the forthcoming Ethereum 2.0 event.
Ethereum blockchain adoption rate is quite high compared to its peers. With 1.4 million active users, the altcoin consumer base has grown substantially in the recent past.
Here are some factors that will impact the Ethereum price in the next few years.
Words of Reddit co-founder Alex Ohanian carry a lot of weight in the crypto realm. He believes in a bullish ETH scenario where the price will touch $1,500. As per his Forbes interview, he loves Ethereum because developers are creating real-world projects on the blockchain.
Better known as the ‘Architect of the ICO’, Steven Nerayoff, is an eternal ETH bull. His pioneering the ICO contributed immensely to the ETH price push in 2017. Steven is confident about Ether price touching $3,000 in some years. More ETH-based projects would pour massive investments into the ETH ecosystem.
The head of deVere Group, Nigel Green, is exceptionally confident that ETH would reach $2,500. Nigel believes that ETH price levels would rise further in 2020. Burgeoning trading, rising smart contract usage and DeFi will boost Ethereum’s prospects.
Brian Schuster of Ark Capital wins hands down when it comes to the future potential of ETH. He gives a lofty target of $100,000. He doesn’t believe ETH to be a mere business but rather a value storehouse with a $10 trillion predicted market capitalization.
Most cryptocurrencies were battered in the March 2020 Coronavirus debacle. However, ETH price was quick to recover from its lows and is hovering above $200. It has performed fairly well compared to other altcoins. A WalletInvestor chart predicts muted channeled movement in 2020.
In 2020, it would be restricted to a channel between $190 and $240. The average ETH price in 2021 will hover around $246. Long term perspective shows ETH touching $490 by 2023. Ethereum mining is less popular compared to Bitcoin mining.
Source: WalletInvestor
Crypto investments are laden with risks due to ever-changing regulations, volatility, and technological innovations. So, there’s no definite answer to the question ‘should I invest in Ethereum?’. The 2017 crypto bubble further complicates decision-making.
That’s why it is crucial to take into account cumulative studies involving fundamental factors, the latest news, industry developments, and technical analysis. Considering these aspects, Ethereum does carry solid long-term investment potential.
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