Ethereum Price Prediction – Why Experts Believe It Will Surge
Ethereum is the second-largest cryptocurrency and was launched in 2015 by a Russian-Canadian developer Vitalik Buterin. The coin’s blockchain protocol allows people from around the world to send and receive funds without the need for third parties.
However, unlike Bitcoin, Ethereum’s blockchain does more than just perform financial transactions. The blockchain hosts the smart contract technology that enables people to enter into an agreement without the need for a third party.
The smart contracts move funds from one individual to another when certain conditions from the agreement are met. Additionally, every transaction on the network is visible on the public blockchain to allow for transparency.
Additionally, the technology can confirm transactions in about 16 seconds, and perform 15 transactions per second. However, the platform has plans to increase this speed.
Ethereum’s price reached an all-time high of $1,400 in December 2017, the same time when Bitcoin hit $20,000. Nonetheless, the price has since tumbled from its all-time high, and it is not clear when—or if—the coin’s price will reach those lofty heights again.
So now that you know what Ethereum is, and what it can achieve, let’s discuss the coin’s future price and factors that will affect the price.
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Ethereum Real-World Events
We discussed above that Ethereum can process 15 transactions per second. Nonetheless, this is a challenge for the network, as it needs to improve to handle global demand.
For instance, in late 2017, a new decentralized application CryptoKitties was processing so many applications and nearly crushed. This was just a single application, so picture a case where the dApps become more popular.
Some people noticed this challenge and started creating new smart contract blockchains that could perform better. A good example is NEO which, can process thousands of transactions per second and there are others being built that claim they can process millions of transactions per second.
However, the Ethereum development team has already recognized this issue and are busy working on a solution. If they can successfully scale the network, we may see the coin’s price reach new heights.
Warning About Price Predictions
We think it’s a good idea to quickly highlight some things you should consider before reading a price prediction article.
In reality, no one can predict the future of Ethereum. While some people get it right, there are others who get it wrong.
No prediction is guaranteed to become true because of factors such as regulations, improved technology, future developments, and partnerships.
These factors determine a coin’s price, so it’s best if you read this prediction with an open mind.
Expert Predictions On Ethereum Price
According to Steven Nerayoff, Ethereum co-creator, the coin’s price will reach great heights in 2019 because of the development capital being pushed into the Ethereum ecosystem. In January of last year, when he made this prediction, Ether’s price was above $1,000. However, it has tumbled from that point and is currently trading at $210.37. But, its easy to see why Nerayoff is so bullish about the price of ETH given that crucial upgrades that address the network’s scalability are on the way. This year’s bull market is also another reason to remain positive on the price of ETH.
Another price prediction was made by CoinKir, a site that uses technical price analysis to make future price predictions. This includes looking at historical trends and predicting trends that could happen in the future.
This is a popular strategy used by real-world financial markets. Nonetheless, these markets look at data that is over 50 years, which the cryptocurrency market lacks. However, according to this site, the coin’s price is going to do really well over the next year.
From the chart above, the analysts expect Ether’s price to be around $720 at the beginning of 2020, then increase slowly. By the end of next year, the coin’s price will have doubled, to $1,488. This is quite interesting since the site does not expect to break its all-time high until November 2020.
If indeed Ethereum’s price hits $1,488, then it’s total market cap will be about $148 billion. If this prediction is correct, it would mean that Ethereum will need close to 2 years before it is ready to go on a big pricing run. This could be true, given the future developments that Ethereum team is working on.
Other positive expert opinions include Jospeh Raczynski’s, an innovator and founder of different companies, including JoeTechnologits.com. Raczynski believes that the coin’s price will reach $1200 within this year, based on the idea that 2019 would see many developments on the Ethereum network, which will have a positive impact on Ether’s price.
Another optimistic prediction was made by deVere Group, a company that offers financial consulting services to many different companies around the world. Nigel Green, the company’s CEO recently mentioned that Ethereum price might jump to $2,500 by the end of 2019. Green added that such an optimistic prediction is due to the increasing use of cloud computing and smart contracts together with the emergence of new cryptocurrencies.
Moreover, Bobby Ullery, an online price analyst believes that Ethereum will hold 25% of the entire crypto market, which he predicts will have a total market cap of $4.5 trillion by 2020. This means that Ethereum’s price will hit $11,000 by the end of 2020.
Nonetheless, other experts think the coin’s price will not reach the great heights that we expect. For instance, A.T.Kearney, one of the world’s prime consulting companies recently published an analysis report. In the analysis, the company stated that by 2019, Bitcoin will have dominated other cryptocurrencies in terms of market capitalization, which will negatively affect the price of most of them.
Another negative prediction was made by the head of Digital Capital Management, Tim Enneking, who stated that Ethereum’s price increase is unlikely since there is no reason for the same. As such, he concluded that 2019 might be promising for other digital currencies but not Ethereum. However, judging by what we have seen so far, he might be wrong.
What To Make Of The Above Ethereum Price Predictions
From the above analysis, it’s clear that Ethereum’s price prediction is rather positive. Despite challenges facing the platform and a constantly changing cryptocurrency environment, most experts believe that the coin’s price will reach greater heights in the near future. These predictions may come true, given the future developments we expect in Ethereum blockchain, as well as massive adoption around the world. Nonetheless, it remains to be seen whether the Ethereum price will rise as expected.