Ethereum price prediction: could ETH end 2020 as the best-performing crypto?
Regardless of the growing competition, Ethereum remains a very special technology that has the ability to completely change the world as more and more is built on top of the smart contract focused protocol.
By far, the biggest potential for Ethereum now lies in the upcoming Ethereum 2.0 update and the massive growth of decentralised finance, or simply DeFi.
Last month, the value of the tokens underpinning the DeFi protocols has surpassed $1bn. Over the past year, the number of DeFi projects providing lending services has increased dramatically, with DeFi transactions coming to represent up to one-third of the Ethereum block space. This has significantly boosted the demand for Ether in recent months and will likely support the price of the coin going forward.
With the crypto market moving at a rapid pace, it may be rather difficult to predict its future movements. To bring some clarity on the matter, we have compiled below a list of the Ethereum projections for 2020 and beyond from various sources.
In 2018, Reddit co-founder Alexis Ohanian told Fortune that while he is very optimistic about the future of BTC and other cryptocurrencies, he is “most bullish about Ethereum simply because people are actually building on it.” He predicted the coin’s value to eventually hit $1,500.
Online analyst Bobby Ullery believes that blockchain technology will soon play a much bigger role in international trade and the overall economy. According to him, Bitcoin and Ethereum will each hold 25 per cent of the entire crypto industry, which he predicts to reach a total market cap of $4.5trn in 2020. For his prediction to come true, the ETH’s value should rise by over 700 per cent.
Earlier this year, a famous crypto analyst, the Crypto Dog, tweeted that ETH looks more bullish than BTC. Another cryptocurrency enthusiast, Antiprosynth, thinks there is a 50 per cent chance that Ethereum may surpass Bitcoin in a few years.
The most optimistic ETH price prediction was given by Brian Schuster, the founder of Ark Capital LLC, in 2018. He stated that “Ethereum is less like one individual business and more like a store of value, like gold,” adding that ETH might reach $100,000 in the following five years.
On the other hand, according to WalletInvestor.com, an online forecasting service, ETH is a “bad, high-risk one-year investment” option. Based on its Ethereum price forecast, the coin is expected to fall to $184 by May 2021. In five years, it predicts this cryptocurrency to trade at $125.9.
Another Ethereum prediction provided by TradingBeasts.com suggests the ETH price has the potential to fall as low $128.9 by the end of this year.
Meanwhile, the service expects ETH to trade on an average of $191.3 in May 2021, with a low estimate of $162.670 and a high estimate of $239.221. By the end of 2021, the median price per coin is forecast to be $246.8. For the longer term, Ether is expected to experience steady growth, soaring up to $494 by December 2023.
Based on the Ethereum outlook suggested by another popular forecasting website Longforecast.com, the coin could end 2020 trading at $209. In 2022, it forecasts a steep decline, with the rate falling as low as $109 by the end of the year.
A much more bullish Ethereum forecast 2020 is offered by Cryptoground.com. It estimates ETH to trade at $256.6 in one year, gaining almost 25 per cent from its current price. The growth is expected to continue, with the coin reaching $1,445 in five years.
In the end, is Ethereum a good investment?
Seeing these vastly different forecasts, you may now be wondering: “Can I invest in Ethereum now? Is it a safe long-term bet?” Clearly, as with any other asset, there is no definite answer to this question. The challenge with choosing which cryptocurrency to invest in is that the market is very dynamic and rather unpredictable. Its volatility makes it hard to predict what the price of a digital coin could be in a few hours; and even harder to give long-term estimates.
Over the past few years, the crypto market has experienced multiple ups and downs. While all the talks continue to revolve around a bright future of blockchain and digital money, there are still many questions to answer.
For that, when considering Ethereum investing, it is crucial to take into account the latest news, market trends, technical analysis and expert opinion.
If you think you are not ready to make long-term investment commitments, but still want to try to profit from Ethereum volatility, you can do so through contracts for difference, or CFDs. With the ETH price falling and rising to such lows and highs, it is an especially great asset for traders who can take advantage of these price swings with a long or short position.
Share On social Media 👇