In this post, we will present our own and market’s opinion (both from popular algorithms and experts) on Ethereum future while discussing Ethereum price forecast for 2020 and beyond.
Since this year is almost up, Ethereum price prediction 2020 is way more interesting, so we made sure to include that section as well, just make sure to scroll all the way to the end.
Now, let’s get to it.
Before we delve deep into the Ethereum price prediction and answer questions if Ethereum is a good investment or not, why will Ethereum succeed or fail or while will Ethereum price rise or drop, let’s quickly do a brief on Ethereum and its to date history.
Year in Review
Even though the price recorded no major recovery, Ethereum was still one of the most active and vivacious projects in 2019 as it has seen increase in developer interest, expansion of the developer pool, incremented growth of useful dApps regulatory certainty, and institutional interest indicating that Ethereum is anything but dead.
There’s no doubt the 2018 bear market has been vicious, as Ethereum lost over 92% of its value but has recovered somewhat from the yearly low that went below $100 at one point. However, price of Ethereum still maintained the second spot in cryptocurrency market, ranked by market capitalization, ahead of XRP and BCH.
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Our Ethereum Price Prediction for 2020
ETH, as the rest of the market, is tied at the hip of bitcoin’s price action. If bitcoin embarks on another bull run, ETH can hope for one as well.
With the latest development in the world and the impending worldwide economic crash, bitcoin failed to decouple itself from traditional markets and lost 40% in one day.
The rest of the market slumped in an even harsher fashion, losing 50%+ in one day. Since this is a black swan event, an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences, there is no one who can legitimately claim that he or his algorithm can predict short-term price developments for anything, let alone cryptocurrencies.
Many experts agree that it will get worse before it gets better, both in terms of human health and economic situation.
We can only speak in very general terms and make a forecast that cryptocurrencies will probably drop below even the 2018 lows (many of the altcoins will most probably dip to unprecedented depths and record new all time lows).
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Once this tough situation passes, a crazy bull run is what we all hope for and probability for such development is pretty high.
The main currency in cryptocurrency markets is Bitcoin and given this, altcoins tend to fuel Bitcoin runs and Bitcoin tends to do the same in return. Given this relationship, Bitcoin price movements (or lack thereof) tend to effect altcoin prices.
Ethereum Long Term Price Prediction
Vitalik Buterin, co-founder of Ethereum said:
“There are some good ideas, there are a lot of very bad ideas, and there are a lot of very, very bad ideas, and quite a few scams as well”
As a result, over 95% of successful ICOs and cryptocurrency projects will fail and their investors will lose money. The other 5% of projects will become the new Apple, Google or Alibaba in the cryptoindustry. Will Ethereum be among those 5%?
Very high probability of that happening.
Ethereum has an order of magnitude more developers building on it than any other platform — and this gap is widening by the day. That means if another blockchain platform wants to beat Ethereum in terms of developer adoption, it’s not enough for it to catch up to where Ethereum is now — it has to exceed Ethereum’s growth rate moving forward. If you don’t have developers building applications on your blockchain, you’re effectively building a ghost town.
The blockchain platform that has the most developers building real-world applications on top of it will be the platform that gains the widest mainstream adoption. And not only does Ethereum have a massive head start in this area, but the gap is widening with each day that passes.
Ethereum has better tools and infrastructure for DApp development than any other platform. Truffle. Infura. Web3.js. OpenZeppelin. Geth. Ganache. MetaMask. CryptoZombies. MyCrypto. Etherscan. ERC20 and ERC721.
These are tools (among many others) that different developer teams have tirelessly poured hundreds of thousands of hours into — and they’re free to use for any Ethereum developer who wants to build a DApp on Ethereum.
All of this summed up sets ETH apart from any of its numerous “killers” like EOS, NEO, ADA, TRX etc.
DeFi and reduced ETH supply
One of the key topics of 2019 was the surge of decentralized finance, (DeFi), a new and disruptive type of finance that runs on trustless protocols and without the need for financial intermediaries.
According to analytics site Defipulse.com, the $1 billion locked in the markets — i.e. across the spectrum of smart contracts, protocols and decentralized applications (DApps) built on Ethereum — is almost 60% denominated in MakerDAO’s DAI stablecoin.
Defipulse stats reveal that one year ago today, the value locked in DeFi was roughly a quarter of what it is now, at $276 million.
Based on the economics 101, this reduced circulating supply of Ethereum is a positive for the price development as the supply shrinks while demands stays the same (or increases). This is an important achievement since Ethereum is the first cryptocurrency that actually enters the world of utility and real-world use. This is an uncultivated soil for cryptocurrencies and Ethereum’s price is bound to go up since it now has another leg to stand on (aside of the ever present speculation).
Staking and ETH supply and its effects on Ethereum price
Ethereum is switching to Proof of Stake some time this or next year (with all the delays, hard to set a date). The Casper protocol has been formalized, the specification is complete, and now the implementation phase can begin. Depending on how long it takes to implement and test may determine how it all plays out.
The minimum staking requirement is set at 32 ethers.
Your staked coins are held for a fixed term of 3, 6, 9, or 12 months in an Ethereum staking wallet that is in synch with a smart contract.
The amount of reward you will collect depends on the elapsed time – the longer you hold your coins in a staking wallet, the greater the reward will be.
This will be another huge factor that will impact Ethereum’s supply, tilting the supply/demand ratio even more to the demand side. With the PoS changes in full effect, Ethereum will have another fundamental force that will be pulling its price upwards.
Market prediction for ETH Price 2020
Here is a tabular summary of what prominent predictors, experts and websites, think ETH could be worth in the next years. We took highs and lows and averaged them to the values listed below.
|Year||Potential High||Potential Low|
|2023 – 2025||$360,000||$8,000|
With the market being completely unpredictable, forecasting the cryptocurrency price is really more of a gamble and luck rather than a data driven guesstimate.
Let’s throw a glance at the eminent publications and personalities, and their predictions regarding the Ethereum price, which will give us another point of view to consider:
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The current technical structure will remain negative as long as the price is below $515, but a successful 2-hour close above this level may perhaps decrease the current bearish pressure and open the doors for a fresh upward wave. On the flip side, the recent low of $477.31 may act as a decent support, the next buy zone being around $450. Overall Ether could consolidate in the short term, but it remains at a risk of more losses until there is a break above $515.
Trading Beasts Ethereum Price Prediction
According to the website, Trading Beasts, the price of Ether will stay around $150 by the end of 2020.
Walletinvestor is a popular website that does technical analysis-based price predictions of various cryptocurrencies. According to them, ETH is expected to appreciate a bit, to $215 in one year.
Cryptoground predicts that ETH might reach $256 by the end of 2020. They even added their version of RDD price prediction 2024, where they stated that RDD might reach $1445 by 2024.
Digitalcoinprice gave a very positive prediction saying that by 2020 end, ETH might be 2x more valuable than now – $263 per coin.
ETH Future: 2023, 2025, 2030
If we take current prices of BTC, ETH and overall market cap into equation, assume their BTC/ETH ratio stays the same and calculate what would it take for ETH to reach $10k we get this answer: market cap would need to be at $1.2 trillion, BTC at $443k. So, it does sound outrageously high but still within realm of solid probability if we consider the size of the overall traditional financial market.
Ethereum’s all time high was $1400 and it was propped up mostly through the ICO mania from 2017. Ethereum has since grown to accommodate actual projects with real value (check De-Fi projects that essentially emulate Wall Street and banking sector in a decentralized fashion) so it can definitely hit $5k within a reasonable timeframe.
They are not competing for the same “trophies” and hence can’t beat each other. They are complementary ecosystems that benefit from each others growth and adoption.
Having read this price prediction for Ethereum, logical question that pops up in everyone’s mind is: should I invest in ETH? Well, that is very hard to answer without knowing personal preferences and investing profile of each of you.
There are definitely enough reasons that make Ethereum a good investment but projecting a certain and bright future for ETH would be irresponsible from our side. Our general recommendation is to keep at least 50% of your crypto portfolio in BTC, 35% of your crypto in large cap coins (ETH, ADA, XRP, XLM etc) and 15% in small cap coins with big upside. That way you are covered in most scenarios crypto could play out (except if it crumbles into annihilation, which is always a possibility but I would expect you’ve already come to terms with that option).
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com