With a series of challenges including hard forks, the rise of competitive businesses, and a critique of the community, Ethereum is surprisingly good at maintaining the second spot in market cap, next to Bitcoin.
Amid the success of the decentralized finance (DeFi) industry, we are now seeing the triumph of the Ethereum cryptocurrency. But what can we expect from it in the future? And how low will Ethereum go before it actually takes off to new highs?
Let us delve into the future prospects of Ethereum and its ecology in order to figure out what we should expect.
Ethereum Technical Analysis (Historic Price)
ETH began rising steadily in January 2016 and reached a price peak of $15 in March. Unfortunately, the price fell two times lower immediately after the Ethereum hard fork.
For some months, the price of Ethereum fluctuated between $8 and $14. Ethereum was added to its list of backed assets in September by the Ledger Nano S hardware wallet, thereby allowing the coin to hit the $15 price.
Ethereum suffered from a DDoS attack on September 22, which resulted in the network slowing down. The attack led to a prolonged downward trend that lasted until December. Then, by the end of 2016, ETH’s exchange price had peaked at around $7-9.
For Ethereum, 2017 was a bullish year as in the first two months, the coin made a solid run at $23. In March, the price of Ether pumped to $53 and then increased to $95 the following month. Another price push happened in June, with the coin touching $400. This continued until mid-November when the price of Ethereum stabilized at the price range of $270-350.
Meanwhile, Bitcoin was gaining traction over the same time span and hit $20,000 — its all-time high. Ethereum followed in the footsteps of Bitcoin and soared in January 2018 to its own high of $1,400. The Ethereum price took another jump upwards on January 8th to cross the $1250 mark before collapsing into a swift correction.
The ensuing trends with regard to the ETH price were primarily a reactionary expression of those of Bitcoin, which saw it spinning its tires during the year in a bearish pattern. As a result, ETH finished the year well over the price mark of $130.
Ether was trading from $100-140 at the beginning of 2019. In April, the first upward trend began. Ethereum began to rise rapidly, tracking the price of Bitcoin, and hitting $300 in June. ETH was unable to retain these positions, though, and began moving back to its former price marks. Ethereum began increasing again in December 2019 and hit $280.
Why Could ETH go low?
At present, ETH’s price continues its bearish trend under market-wide crash and increasing selling pressure. Why is ETH price falling and how low will Ethereum go?
The threat to be taken into account in the price outlook for the coin is the disappointing progress being achieved in introducing the second version of the main network of the blockchain.
ETH 2.0 is currently the need of the hour as the present infrastructure of the network clearly cannot keep up with demand levels, especially with the rising demand for DeFi protocols. Eight months have now passed after the plan was to begin the Beacon Chain, better known as Phase 0.
Even Ethereum supporters caution that any further delays could cause other blockchain networks to be considered by DeFi protocols and users. This in turn would result in the price of Ethereum dropping off.
How Low Will Ethereum Go?
One of the most significant variables to remember when attempting to make valid cryptocurrency forecasts is often the historical success of a cryptocurrency. As we can see from its behavior, in the space of six months, Ethereum has undergone two drastic declines in price, with signs of steady growth in between.
If this trend repeats itself by the end of the year, by the time we reach 2021, the price of ETH could come down to $150.
Ethereum Price Prediction 2020
The price of Ether declined from $200.70 to a low of $89.73 between March 11th, 2020 and March 13th, 2020. It was the first time since December 2018 that the crypto had sunk to double digits.
But by the end of April, it had returned to its pre-COVID price and reached $200 again. This bullish phenomenon has endured throughout the remainder of 2020. Recently, Ethereum also surpassed $400 by the end of October.
Furthermore, Eth’s projection speculates that by the end of 2020, Ethereum will hit about $450 to $500.
Ethereum Price Prediction 2021
In 2020, we saw a major dApp adoption that powered the ETH price. In addition, as the network is currently extended to its limit with the growth of DeFi, an upgrade dubbed Ethereum 2.0 is planned for November 2020.
It is estimated that the updated version would improve the network’s scalability to 100,000 transactions a second, switching the blockchain from the energy-intensive POW to the efficient POS.
With multiple projects built on it, the network is super popular. If the improvement is sustained, we can see the price of Ethereum potentially climb to 604.007 USD in the year 2021.
Ethereum 5 Years Price Prediction
We plan to see a lot of interesting network ventures, and with the speed, success, and start of new projects on the network, we will soon see Ethereum breaking all records. It could reach prices of over $5,000 per ETH before the end of the year 2025. Let’s see what the market predicts on ETH price.