Ethereum (ETH 9.61%), or rather, the Ether token of the Ethereum ecosystem, is the second largest cryptocurrency on the market. Ether prices rose to $4,892 in November 2021, but today they have returned to about $1,500 per coin. Concerns about inflation and the lack of robust cryptocurrency regulations have weighed on the cryptocurrency market as a whole and on high-share market darlings such as Ether in particular.
However, the cryptocurrency market has shown some signs of stabilization and recovery in recent weeks. The price of Ether has gained 67% from its 3-month lows and many investors are wondering how high this digital asset can go from here. For example, will it ever be worth $10,000 per coin?
Today’s change
(9.61%) USD 139.45
Current price
USD 1,590.18
KEY DATA POINTS
Market capitalization
Range of the day
$1,524.19 – $1,597.62
Range 52wk
$881.97 – $4,867.49
volume
30,829,809,110
Avg Vol
0
P/E (ttm)
Market cycles and volatility
First of all, some people believe that cryptocurrencies are a passing fad with no intrinsic value. I’m not here to change my mind about the fundamentals of the cryptocurrency market, so if you fall into this group, you’ll probably be happier to read the best stock ideas on the market instead. Everything is fine – cryptocurrencies are not the Lapsang souchong cup of all investors.
But among those who see real-world value in ultra-secure digital ledgers with extra features like smart contracts and decentralized management, Ethereum should recover from this recession. The cryptocurrency market has been highly cyclical so far, and 2022 looks a lot like the 2018 correction. Back then, Ether had never traded above $1,450 per coin, and investors were wondering if the cryptocurrency would return to the $1,000 level.
So the 52-week lows nowadays are comparable to the all-time highs of the previous recovery, and the pace continues. But this time things are different because the cryptocurrency phenomenon is growing rapidly. What may have been a forgettable fad four years ago is now fueling decentralized financial apps, innovative lending and insurance services, online gaming, and international money transfers. Regulators around the world are taking cryptocurrencies much more seriously today, and fellow bitcoin industry giant now serves as the official currency in two countries.
Can Ethereum get back on its feet?
The cryptocurrency market as a whole is expected to achieve a full recovery in a year or two, followed by continued long-term growth. Again, I’m basing my analysis on the idea that developers will continue to produce cryptocurrency-based products, apps, and services that consumers and businesses find useful in the real world.
As an industry veteran, with unique features and an unparalleled army of app developers, Ethereum is poised to lead that surge from the front. Don’t forget that this crypto network is about to implement the most important technological upgrade in its history, erasing the speed and efficiency advantages that some Ethereum rivals boast of today. This old dog is happy to learn new tricks.
To reach a price of $10,000 per Ether coin, the cryptocurrency must double the peak prices seen in November. The target price is almost seven times the current level. That sounds like a lot, but the volatile cryptocurrency market can offer moves of that epic magnitude quickly. For example, ether prices increased more than 20-fold from March 2020 to March 2022.
It’s a matter of time
There are no guarantees that the next recovery will be like this, of course. Let’s just say that I wouldn’t be surprised if Ether multiplied its market value by 7 or more amid a general recovery in the cryptocurrency market, with its own platform update providing more fuel for the fire. All components of this potential future are in place, and the bullish move of the market is only a matter of time, as long as you agree that cryptocurrencies and blockchain networks have a useful future.
Under these circumstances, Ethereum seems almost certain to reach the $10,000 price mark, and then continue to rise in the long run. In the process, the market capitalization will exceed the trillion-dollar limit when Ether prices reach $8,221 per coin. In my opinion, these benchmark metrics are coming, and probably within the next year or two.
