Ethereum Price Could Go Higher: Expert Predictions and Analysis
The token native to the largest smart contacts ecosystem and the second-largest crypto, ETH, is trading barely unchanged from Wednesday’s levels around $1,845. A rejection from highs around $1,900 saw Ethereum price test support at $1,825. So, what's next?
In this article, we will see what experts think about Ethereum’s future price and also check out some of my own analysis of its future performance.
What is Ethereum?
Ethereum is more than just a cryptocurrency. It is a platform that enables developers to create decentralized applications (dApps) that run on smart contracts, which are self-executing agreements that operate without intermediaries or censorship. Ethereum also supports a wide range of decentralized finance (DeFi) protocols, which offer various financial services such as lending, borrowing, trading, and investing without relying on traditional intermediaries.
Ethereum’s native token, ether (ETH), is used to pay for transactions and computational resources on the network. ETH also has value as a digital asset that can be traded on various exchanges and platforms.
Why is Ethereum Rising?
There are several reasons why Ethereum has been outperforming other cryptocurrencies in recent months. Some of the main ones are:
- Network upgrades: Ethereum has been undergoing a series of upgrades to improve its scalability, security, and efficiency. The most recent one, dubbed “London”, implemented a new fee mechanism that burns a portion of the transaction fees, reducing the supply of ether and increasing its scarcity. This has created a positive feedback loop, as higher prices lead to more fees burned, which in turn leads to higher prices.
- DeFi growth: Ethereum is the dominant platform for DeFi, which has seen explosive growth in 2021. According to DeFi Pulse, the total value locked (TVL) in DeFi protocols has increased from $15 billion in January to over $80 billion in August, representing a 433% increase. DeFi users need ether to interact with these protocols, creating more demand for the token.
- NFT craze: Ethereum is also the leading platform for non-fungible tokens (NFTs), which are unique digital assets that represent anything from art and music to sports and gaming. NFTs have become a cultural phenomenon in 2021, attracting celebrities, influencers, and collectors alike. According to NonFungible.com, the total sales volume of NFTs has increased from $12 million in January to over $900 million in August, representing a 7400% increase. NFT buyers and sellers need ether to mint and trade these tokens, creating more demand for the token.
- Institutional adoption: Ethereum has also gained more recognition and adoption from institutional investors and corporations, who see it as a valuable asset and a platform for innovation. According to CoinShares, institutional investors have poured over $1 billion into Ethereum products in 2021, representing 27% of the total inflows into crypto products. Moreover, companies such as Visa, JPMorgan, and Microsoft have announced initiatives involving Ethereum or its technology.
What Do Experts Predict for Ethereum?
There are different predictions for the price of Ethereum in 2023. According to Wallet Investor, Ethereum is likely to trade just above $700, around 55% lower versus current levels.
DigitalCoinPrice predicts Ethereum ending 2023 at around $3,450, an impressive more than 100% up versus current levels. A survey of 55 fintech experts conducted by Finder.com expects Ethereum to end 2025 at $5,150 per token, before eventually rising to $11,700 in 2030.
Another prediction states that the price of ETH could propel to $1866.79 by the end of 2023. According to another forecast, the forecasted Ethereum price at the end of 2023 is $1,919, with a year-to-year change of +61%.
Cathie Wood declared that Ethereum is more undervalued than BTC and expects an ETH price of US$180,000. According to our Ethereum price prediction, the ETH coin can reach a maximum price level of $2,239.35 by 2023, while the average price of Ethereum can be trading around $1,922.94 in 2023 if the market goes smoothly.
As you can see, there is no consensus among experts on where Ethereum will be in 2023, as the predictions range from bearish to bullish. However, most of them agree that Ethereum has a lot of potential and room for growth, as it continues to innovate and lead the crypto space.
My Opinion: Ethereum Could Rally to $2,500 Soon
As a crypto enthusiast and investor, I have been following Ethereum closely and I have a bullish outlook for its near future. Based on my technical analysis, I believe Ethereum could rally to $2,500 soon, as it shows signs of strength and momentum.
Here are some of the reasons why I think Ethereum is poised for a breakout:
- Bullish divergence: Ethereum has been forming a bullish divergence on the daily chart, which is a sign of a trend reversal. A bullish divergence occurs when the price makes lower lows while the oscillator (such as RSI or MACD) makes higher lows, indicating that the selling pressure is weakening and the buying pressure is increasing. As you can see from the chart below, Ethereum has been making lower lows since May, while the RSI has not been making lower lows anymore, creating a divergence.
- Golden cross and Resistance: Ethereum has also recently formed a golden cross on the daily chart, which is a bullish crossover of two moving averages. A golden cross occurs when a short-term moving average (such as 50-day MA) crosses above a long-term moving average (such as 200-day MA), indicating that the trend is changing from bearish to bullish. The golden cross is considered a lagging indicator, as it confirms the trend after it has already started, but it also signals that the trend is likely to continue. As you can see from the chart below, Ethereum has formed a golden cross on 8 February, as the 50-day MA crossed above the 200-day MA. Currently the price action is at a support level of 50 MA line, so it has a high chance of bouncing back.
Based on these technical indicators, I believe Ethereum is ready to break out of its consolidation and resume its uptrend. My short-term target for Ethereum is $2,100, which is the next resistance level for ETH. My medium-term target for Ethereum is $2,500, which is a psychological resistance level.
Of course, these are just my opinions and not financial advice. You should always do your own research and analysis before investing in any cryptocurrency. Ethereum is a volatile and risky asset that can experience sudden price movements and corrections. You should also be aware of the external factors that can affect Ethereum’s price, such as regulatory developments, network upgrades, security breaches, market sentiment, and competition from other cryptocurrencies.
Conclusion
Ethereum has been one of the best-performing cryptocurrencies in 2021, breaking past the $2,000 milestone and reaching new highs. The rally has been driven by several factors, such as network upgrades, DeFi growth, NFT craze, and institutional adoption. Experts have different opinions on where Ethereum will be in 2023, but most of them are optimistic about its long-term prospects.
If you enjoyed this article, please share it with your friends and leave a comment below. I would love to hear your thoughts and feedback on Ethereum and its future. Thank you for reading!
Check out my other articles about Crypto Market:
