As we correctly expected, the Fed has not made firm commitments regarding easing the pace of rate hikes. As a result, the cryptocurrency market has corrected slightly today. Meanwhile, ETH DeFi Trading volumes have increased by 10% in the last 6 weeks. Trading volumes in ERC 20 Tokens such as SHIB increased significantly during the week. This is good for ETH.
Recent reports from the Bureau of Labor Statistics show that the consumer price index has only risen at a rate of 7.7% over the past 12 months.
Compared to the Fed’s inflation target, which is 2%, it is considerably high, but the rate is still down from 8.2% in September.
When this particular dataset came out yesterday, Bitcoin jumped from its $16,000 levels to $17,500 which translated into an increase of about 6%. Ethereum took a surge from $1200 levels to $1280 in just a few minutes, which was a much more improvement than Bitcoin.
Ethereum
Table of Contents:
predictions: Is Ethereum a good investment?
Ethereum has had two years of loss since its launch (after a hard fork with ETC) in 2016. The losses came in 2018 and 2019, the years when the Federal Reserve shrunk the size of its balance sheet. Losses in 2022 also followed the same pattern.
Earnings years: 2017, 2020, 2021
Years of loss: 2018,2019,2022
In how many days has Ethereum doubled in the past?
- $100 to $200: 11 days
- $200 to $400: 178 days
- $400 to $800: 26 days
- From $800 to $1600: 1143 days
- From $1600 to $3200: 58 days
The current economic environment is highly unpredictable given rising interest rates, conflict in Europe and the spectacular fall of the Chinese economy. Global supply chains have yet to fully recover. Therefore, in the short term, volatility is likely to be high. However, the price of Ether is likely to rise in the coming years, first gradually over the next 2 years before pumping higher in 2025.
Why is Ethereum valuable?
Ethereum has multiple use cases.
- DAOs (Decentralized Autonomous Organizations): Unlike traditional organizational structures with clear leadership and top-down decision-making, DAOs work more democratically with proposals voted on by blockchain members.
- Ethereum smart contracts: Most Altcoins do not have their own blockchains. Instead, they issue ERC-20 tokens from the Ethereum blockchain. Ethereum charges a gas fee in the form of Ether (Eth) cryptocurrency for using the Ethereum Blockchain
- Metaverse: Almost all Metaverse platforms are based on the Ethereum Blockchain. So, while Ether itself is not used on
- DeFi Tokens: Ethereum is a dominant player in this space with most tokens and apps built on Ethereum
- Decentralized apps (DApps) like Uniswap, Polymarket, etc
.
Factors that have influenced the price of Ethereum in the recent past
- New developments in blockchain (such as Merge)
- External events such as interest rates, inflation and war (Fed and Ukraine)
- Crisis in the cryptocurrency sector such as Terra LUNA
- New data suggesting improvements in Blockchain adoption (Via DeFi, NFT etc.)
ETH Price Prediction 2022-2040
Ethereum Price Prediction 2022
Numerous experts predict an increase in Ethereum prices before and after the merger. In fact, ETH prices had doubled in a few weeks after the merger was announced. However, August turned out to be gloomy for Ethereum. With the global economic environment becoming bleaker, ETH has declined significantly over the past couple of weeks. Aggregate data suggests Ethereum will rise to $1,841 by the end of 2022, 20% more than today.
However, it is important to consider other scenarios as well.
Ethereum Price Prediction 2023 is $2,800, this current price 1.8x
Ethereum Price Prediction 2024 is $3,863, this is 2.6x the current price
Ethereum Price Prediction 2025
Global economies are likely to fully recover by 2024 and this will push Ethereum significantly higher between 2024 and 2025. Our aggregate method predicts that Ethereum will rise to $5,309 in 2025. This is 3.5 times higher than the current price.
The factors that will drive growth in the next 3 years are:
- Undisputed leader in the smart contract space. ETH is required to transact using Ethereum Layer-1 Blockchain
- Most Altcoins use the ERC Token framework, so since many Alts fail, the few remaining will continue to feed Ethereum in both the short and long term.
- Metaverses are likely to explode in the wake of better VR glasses likely to be introduced in the second half of 2023. Facebook’s Meta is also likely to drive the increase in Metaverse subscriptions over the next 3 years.
- Merge leads to deflation of Ethereum (a type of Burn)
- The market cap of cryptocurrencies is now $1 trillion. 1% of the current global wealth allocation would amount to $4 trillion, which is 4 times the current market capitalization. Therefore, it is likely that good cryptocurrencies like Ethereum will continue to receive allocations to investors, and Ethereum in theory could increase 4-fold in the next 2 years.
Ethereum Price Prediction 2026 is $6,908, this is 4.6x the current price
Ethereum Price Prediction 2027 is $9,094. This current price 6.1x
Ethereum Price Prediction 2028 is $12,588. This is 8.3x the current price
Ethereum Price Prediction 2029 is $17,757. This is 11.6x the current price
Ethereum Price Prediction 2030
The period between 2025 and 2030 will likely be Ethereum’s golden era with increased adoption rates among institutions, among consumers driving a huge need for Ethereum tokens. Our aggregate method predicts that Ethereum will rise to $25,075, which is 16.3 times higher than the current price.
Ethereum Price Prediction 2040 using the 15% and 25% ROI method
- If the ETH price increases by 15% per year: $16,228
- If the ETH price increases by 25% per year: $72,792
Ethereum Price Prediction: Technical Analysis
Looking at the daily charts of Ethereum, we can see that the whole Binance saga that took control of FTX also influenced Ethereum making it bearish. For now Ethereal can be seen taking support from the recent trend line that is falling in sync around $1290. Any confirmed drop below this would trigger a huge sale by making it track its $1000 levels. Compared to Bitcoin, its performance is good but not by much, which can raise some concerns for ETH as well. For long-term buyers, they may only be interested after ETH breaks its ascending wedge and crosses $1800 which can bring a lot of bullish momentum for crypto.
So, we can see that on November 11th, Ethereum retraced itself to the daily trend line it was following and started treating it as support once again after the dollar took a hit yesterday morning. The weakening dollar is right now behind any price movement on the upside because the overall fundamentals have always been gloomy for cryptocurrency in recent times. It is currently more bullish than Bitcoin and looks much more stabilized than BTC right now. $1635 is an important level for cryptocurrency right now as it forms a bearish symmetric triangle that can cause some sideways movements for the next time, but any break above the level can bring a bullish rally in the cryptocurrency for buyers to interest themselves at the same time.
How to buy Ethereum?
Ethereum is one of the most popular cryptocurrencies. Here are the steps to buy or invest in Ethereum:
Requirements to buy Ethereum:
- You need to have a Crypto Exchange account
- You need to have a crypto wallet
Steps to invest in Ethereum
- Choose a cryptocurrency exchange
- Create your account with Crypto Exchange
- Fund your portfolio
- Buy Ethereum
- shop
Ethereum can be purchased on the following websites/apps – Coinbase, Binance, Robinhood Crypto.com, using a decentralized exchange, CEX. IO (using a credit or debit card), Kraken
