(ETH) Ethereum Price Prediction & Forecast
[Updated 27 November 2018]
Thinking of investing in Ethereum in November 2018? Here are our honest price prediction and forecast.
- Fundamental Analysis
- Technical Analysis
- Specialists’ Perspective
- Ethereum Price Prediction 2018
- Ethereum Price Prediction 2019
- Ethereum Price Prediction 2020
- Ethereum Price Prediction 5 years
- Our Prediction
Ethereum is the name of a distributed computing platform designed by Vitalik Buterin and Gavin Wood, intended as a tool for the execution of smart-contracts. The native digital currency for the Ethereum platform is ether (ETH) — which acts as a reward for Ethereum miners, as a store of value, and as fuel for the operation of the distributed computing platform.
Like the overwhelming majority of cryptocurrencies in 2018, Ethereum (ETH) has seen a drastic decline in market capitalization — falling from over $1,400 in January this year down to barely over $100 at the time of writing.
Ethereum’s next big update — Constantinople — was recently finalized and includes five different Ethereum improvement proposals that should fundamentally improve the blockchain.
Since Constantinople contains mostly ‘invisible’ changes that will not be felt by typical users — such as improving efficiency and preparing for more significant upgrades in the future — we do not imagine the run-up to its release will be favorable for Ethereum.
A large part of Ethereum’s impressive growth in 2017 was due to the ICO (initial coin offering) boom, which saw hundreds of projects use Ethereum’s ERC20 standard for the issuance of their tokens. Since early 2018, however, ICOs have drastically fallen out of public favor after the vast majority of ICO tokens suffered heavy losses since the start of the year — taking ETH down in tandem.
Because of the adverse market conditions as of late, which saw Ethereum knocked quite convincingly out of the market cap’s second spot by XRP, we expect the downtrend to continue late into 2019 — potentially seeing ETH end the year under $100. Ethereum now sits in third place, just above Bitcoin Cash (BCH), with close to 4x its market cap.Ethereum $ETH is expected to fall to sub $100 to start 2019 — slightly lower than its current valuation. Click To Tweet
From a fundamental perspective, Ethereum (ETH) has shown signs of relative weakness this year — with rumors that co-founder Vitalik Buterin would be leaving the project and several delays to its much-hyped update schedule being announced.
Besides this, however, the future of Ethereum has been made clear as its ‘serenity’ roadmap was recently elucidated, demonstrating a long-term vision for the project and including plans to resolve several long-outstanding issues relating to scaling, security, and user experience.
Ethereum also has perhaps the largest developer community of any blockchain and over 20 percent more active nodes than Bitcoin, demonstrating that the project has the necessary support for continued growth.
The Ethereum Foundation also provides a host for resources for anybody interested but does require that they learn Solidity — Ethereum’s native programming language — if they want to design smart contracts for the Ethereum Virtual Machine.
2017 was a strong year for Ethereum, seeing its value drastically grow from just over $10 in January up to a monumental $1,400 just a year later. This growth cannot be said to be unique to ETH, however, as practically all digital currencies in the top 10 by market capitalization experienced similar growth.
However, since the overall trend in 2018 was extremely bearish, ETH has completely collapsed in value — losing over 90 percent of its value compared to its all-time high and more than 76 percent in the last year.
Compared to the Bitcoin price, Ethereum has fallen significantly faster — losing three-quarters of its value against BTC since February this year.
Despite this, during each bullish wave in the past year, ETH has outperformed BTC. While it is likely that the continued bear trend will see ETH/USD continue to fall, gains against BTC are possible with each bounce.
The majority of expert predictions made earlier in the year painted an extremely bullish 2018 for Ethereum, with Olaf Carlson-Wee, CEO of the hedge fund Polychain Capital, predicting that Ethereum’s market cap will exceed Bitcoin’s by the end of the year. In January, Ethereum co-founder Steven Nerayoff suggested that Ethereum could double or triple by year-end due to the growing interest surrounding cryptocurrency.
Investing Haven is bullish on the crypto industry in general, expecting that 2019 will be a strong year for major digital assets, predicting that Ethereum will reach $1,000 sometime in 2018 or beyond.
Mike Cagney, previously CEO of student loan refinancer SoFi, is bullish on Ethereum — arguing that its infrastructure applications far exceed Bitcoin’s.
On the other hand, Josh Case, CEO of Antigua-based cryptocurrency exchange Ethershift, has been predicting bearish prices all year, telling us that “we have a very bear winter ahead of us, that will end with Bitcoin under $3,000 and Ethereum under $70.”
Case’s bearish predictions are echoed by Ethereumprice.org, which predicted that Ethereum has a 10 percent chance of seeing $200 again by the end of the year, whereas the odds of $500 or $1,000 are almost negligible at 4.99 percent and 3 percent, respectively.
MegaCryptoPrice is, on the other hand, mega bullish for the long term, forecasting 490 percent growth by the end of 2019 — which would see Ethereum reclaim $600 while its 5-year prediction sees ETH approach its all-time high at $1377.
Ethereum Price Prediction 2018
With the entire cryptocurrency market in the midst of what may be an unprecedented bear period in terms of size and severity, few cryptocurrencies are looking promising. Since the beginning of 2018, close to $700 billion has been wiped from the industry market cap, $120 million of which was from the Ethereum (ETH) crash.
When the bear period first began around mid-January of this year, ETH was hit hard — quickly losing close to 40 percent of its value in under a week.
Since then, Ethereum has crashed through several key resistance zones before hovering around $200 for two months — which was then broken in early November.
While it’s very unlikely that we will see a huge 2017-esque bull run this year, it is also unlikely that Ethereum will continue to drop much further due to the strong resistance at $100. If any coin is expected to break the cycle this early, it doesn’t appear to be Ethereum, as almost all indicators suggest otherwise.
However, the relative strength index (RSI) indicates that Ethereum and the cryptocurrency market, in general, is extremely oversold, indicating that we are somewhere near the bottom. As it stands, it appears that Ethereum’s position will continue to weaken against BTC and XRP as 2018 concludes, likely struggling to hold $100.
Ethereum Price Prediction 2019
Though Ethereum will almost certainly close 2018 around $100, the long-term forecasts look far more promising. 2019 is slated to be the year when several significant upgrades to Ethereum’s blockchain technology are implemented, beginning with Constantinople and ending with the Caspar upgrade.
Caspar stands to significantly augment the way that the Ethereum blockchain is secured and maintained, switching from a pure proof-of-work (POW) system to a hybrid system also including proof-of-stake. According to reports by Vitalik Buterin, this hybrid consensus will initially favor POW, but will gradually place more importance on the POS part.
Switching from POW to POS is expected to massively increase the security and scalability of Ethereum, boosting its value as a blockchain and significantly increasing the value of ETH as large amounts become locked up in the new staking model.
Most experts agree that 2019 is shaping up to be a big year for Ethereum and that the price of ETH should begin to blossom as enthusiasts stock up in preparation for staking. Because of this, a price of between $250-300 should be attainable by year-end.
Ethereum Price Prediction 2020
Whilst 2017 and 2018 might have been dominated by ICOs, 2020 will likely be dominated by decentralized applications.
As it stands, the number of transactions the Ethereum blockchain can handle is severely limited by a number of factors — including the inefficient POW consensus algorithm and Ethereum Virtual Machine. By 2020, the transition to the new serenity implementation should be almost complete, which should provide drastic improvements to the capabilities of the Ethereum network.
As DApp developers begin to take advantage of the new and improved Ethereum, we should see a surge in high-quality applications built on Ethereum, driving up the ETH price as DApps begin consuming an increasing amount of gas.
Because of this, it is widely expected that in 2020, Ethereum will be one of if not the strongest cryptocurrencies still in use, potentially achieving a value exceeding $1,400.
Ethereum Price Prediction 5 years
In just four short years, Ethereum managed to achieve a market capitalization of almost $140 billion at its peak —, a feat that took Bitcoin, currently the most popular cryptocurrency, eight years to achieve. If Ethereum manages to keep the same pace, it may dethrone Bitcoin as the king of cryptos.
However, Ethereum faces stiff competition from other smart-contract capable platforms, including NEO, Cardano, and Stellar — all of which have their own wildly ambitious roadmaps ahead. Whether or not Ethereum manages to fend off these promising upstarts will have a lot to do with how accurately it follows up its own roadmap.
The Ethereum Foundation’s commitment to the project is widely considered to be industry leading, with currently dozens of different Ethereum improvement proposals (eIPs) being worked on simultaneously. With the Serenity upgrade shaping up to be a genuine game-changer, it is certainly within the realm of possibility to see Ethereum massively exceed its all-time high, perhaps even passing the $3,000 mark.
Here at BeinCrypto, we base our forecasts on the long-term potential of the Ethereum project with the assumption that the 2018 bear market is not a recurring concern.
With strong fundamentals and a solid plan to maintain relevance in the face of strong competition and technical challenges, Ethereum has proven itself to be one of the few projects genuinely preparing for the long haul.
Overall, we see a strong future for Ethereum (ETH), with the potential to rise upwards of $3,000 within the next several years — assuming it can indeed deliver on its promise of a massively scalable distributed computing platform. We find it unlikely that Ethereum will fall significantly below $110, and will likely hover between $100 and $200 until we see a move to proof-of-stake.
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Nevertheless, investors should always do their own research and tread lightly before buying Ethereum coins. The market is notoriously volatile, and anyone investing in both Bitcoin and Ethereum should be prepared to lose their entire investment.
What do you think of our ETH price prediction in 2019 and our Ethereum forecast for the future? Do you think ETH can recover in 2018? Let us know your thoughts in the comments below!
Images courtesy of Shutterstock, TradingView.
Disclaimer: The contents of this article are not intended as financial advice, and should not be taken as such. BeInCrypto and the author are not responsible for any financial gains or losses made after reading this article. Readers are always encouraged to do their own research before investing in cryptocurrency, as the market is particularly volatile. Those seeking advice should consult with a certified financial professional.