Ethereum Price Prediction: Will ETH Break Above $4,000?

For a long time, Ethereum has been the world's second-largest cryptocurrency by market capitalisationafter Bitcoin, and the question of whether Ethereum will reach new heights is intriguing. We'll look at multiple Ethereum price predictions to guide you through different opinions about this asset's future.

What Is Ethereum (ETH)?

Ethereum is a decentralised, open-source and distributed computing platform that facilitates smart contracts and decentralised applications (dApps).

The project was proposed in 2013 by programmer Vitalik Buterin, crowdfunded in 2014, and fully launched on 30 July 2015. His idea was to elevate blockchain from a public ledger to organising people, companies, money and services. So, if anything can be written into code and used by a smart contract, Ethereum can build it.

You can think of Ethereum as a programmable Bitcoin that makes it possible to create markets, shared ledgers, digital organisations and other creations that need immutable data and agreements without an intermediary.

The Eth2 Upgrades

Ethereum 2.0 ("Serenity") is an upgrade to the already existing blockchain that is supposed to address bottlenecks and increase the number of transactions. Eth2 has some fundamental changes in its structure and design:

• Sharding: The blockchain will be broken into 18 shards operating simultaneously to make the network more efficient. 
• Staking: The network will move to the Proof-of-Stake algorithm that relies on validators instead of miners, eliminating the concept of mining.

One of the significant changes coming in version 2.0 is reduced transaction fees. Sharding drastically increases network bandwidth and reduces gas costs. Gas refers to the fee pricing value to successfully conduct a transaction or execute a contract. Reducing gas consumption translates to lower fees for users.

This improvement also addressed the problem of environmentally wasteful mining. Annual carbon emissions from the electricity generated to extract and process every cryptocurrency are becoming a huge concern for the public. After Eth2.0, the underlying mechanism will activate validators upon receipt of enough stake, which doesn't take nearly as much time or energy.

Tests for Ethereum 2.0 are currently being conducted with the Medalla Testnet and over 20,000 validators worldwide. This is the final stop before Phase 0 is deployed.

The Main Drivers of ETH Price

The price of traditional assets, such as stocks or bonds, is driven by economic factors like inflation or government regulation. 

ETH prices are strongly driven by popularity among investors, political or regulatory events and investor expectations in the markets.

The Success of ETH 2.0

The success of Ethereum 2.0 directly affects ETH prices spiking up. Some even refer to the launch of the upgrade as the starting gun going off. Because Ethereum becomes more scalable via layer-2 technology, it'll draw more attention from traders, investors and a large pool of corporate and individual users.

Ethereum 2.0 is very likely to cause a long-term bullish impact on the value. The influence may already be present. 

Ethereum Futures

Ethereum futures allow traders to speculate on ETH's value at a given date in the future for the first time. This launch can be considered as opening the doors for traditional investment firms.

What does it change? Futures allow exposure to the digital asset market without navigating crypto exchanges or setting up digital wallets. This leads to a spike in investors that prefer the structure of traditional financial markets.

Decentralised Finance

Ethereum is already active in the DeFi space. It uses smart contracts to create protocols replicating existing financial services in a more transparent way.

DeFi is already a trend, and the more demand there is for it, the more valuable it becomes. Consequently, the price of Ethereum will follow.

Ethereum is playing a pivotal role in the growth of DeFi because every major DeFi protocol is built on the Ethereum blockchain, and new projects are joining at a rapid pace. Even with crypto's volatility, the long-term upward trend in DeFi remains.

BTC/ETH Correlation

If we compare BTC and ETH's charts, we see patterns of their price movements that correlate over a long period of time. No other cryptocurrency pair shows as many signs of an extremely strong bond. In this part of the market cycle, the BTC/ETH correlation is 0.81.

This phenomenon shows up especially vividly with large price fluctuations. The correlation is instantaneous in most cases, with a difference of several minutes or hours.

Ethereum Price History

Let's go through notable events in the project's history and see how they affected its price:

• 22 July-2 September 2014. You could officially buy ETH with BTC for 42 days. No fiat currencies were involved.
• 20 July 2015. The network went live, with 72 million coins pre-mined and ready for circulation. The price was around $1.
• 7 September 2015. The frontier thawing fork lifted the 5,000 gas limit per block, making it possible to perform transactions. But this didn't affect the price at all; at the time of the launch, it was $1.24.
• 20 July 2016. After a hack due to an insecure DAO contract (3.6 million ETH lost), the team introduced the DAO fork. At the time, ETH was priced at $12.54, but it dropped to $8 in response. 
• 22 November 2016. The Spurious Dragon fork, which introduced new security features, was the second attempt to come back from the DoS attacks. Ethereum was worth $9.84. 

• 13 June 2017. The price skyrocketed to $391.89. Around that time, the Bancor Foundation raised $153 million worth of Ether in just 3 hours. This generated tremendous returns and spiked demand for Ethereum.
• 14 January 2018. After rising fivefold in the final few months of 2017, Ethereum reached $1,417.11. This was due to the notion that it would become the world's most valuable cryptocurrency, a moment dubbed "the flippening".
• 6 April 2018. The lowest point for the year was $368.69, and the hype was long gone.
• 27 June 2019. The year wasn't very successful for ETH, with the highest point being $350.81.
• 18 March 2020. From the lowest point of $112.94, Ethereum started a slow but consistent upward trend that continued all the way to 2021.

How Was Ethereum Doing in 2021? What About 2022?

ETH was worth $738.73 on 1 January 2021, but not for long. The prices rallied upwards across most cryptocurrencies. Ethereum reached its (at the time) ATH mark of $2,036.29 on 20 February 2021. Other currencies like Bitcoin, Litecoin, Bitcoin Cash and Uniswap have also substantially increased. But that price surge wasn't the end. 

Ethereum made an impressive leap to $4,293 on 12 May, which became yet another peak for the year. Other notable mentions include $4,213 in October, $4,843 in November and $4,736 in December. By the end of the year, ETH was trading at a slightly lower rate of around $3,900.

There are four reasons why ETH price jumped in 2021:

1. The ETH 2.0 upgrade is progressing well. Investors are already paying close attention and preparing for the upcoming releases to make Ethereum more scalable, secure and sustainable.
2. The rising adoption of Decentralised Finance mentioned above. We can already see its positive effect on the price. 
3. Ethereum has proven itself as a reliable alternative to Bitcoin among retail traders. Besides, Bitcoin is already testing the $60,000 level. 
4. The US's ongoing fiscal and monetary policy offers an incentive to rush to risky assets by most investors. Congress is also considering a $1.9 trillion package for the near future.

As of-mid September 2022, the trading price is around $1,350, the market cap is over $165 billion, and the trading volume is over $21 billion.

Short-Term Ethereum Price Prediction for 2022

Let's start on a relatively high note - with a table shared by PricePrediction.Net. This platform shares that the average price will rise slightly by the end of the year, putting it over $1,600 and even $1,700.

Similarly, Wallet Investor gives a noticeably optimistic overview. 

The final Ethereum price prediction for 2022 is presented by Digital Coin Price. According to this forecast, Ethereum will stay at relatively the same level, reaching an average price of over $1,700 by the end of the year.

In the table and others going forward, we're taking the value of $1,350 as the reference point for the current price.

Ethereum Price Forecast for 2023-2025

According to PricePredictionNet, 2023 will be an interesting year for Ethereum. While it expects the coin to start strong at around $1,700, it also predicts a steady rise toward the end of the year. The end-year results show a significant appreciation compared to the current price. 

According to DigitalCoinPrice, 2024 might be a year of volatility. Starting off at around $4,372, the asset might move down to $3,993-$4,242. 

The Ethereum price prediction 2025 was presented by PricePrediction.Net. The average values might grow from $3,404 all the way to $4,665.

Ethereum Price Prediction for 2030

Unfortunately, with such long-term forecasts, the figures are only approximate. The market may change completely in almost nine years. The forecasts highlighted before are all based on historical data. But with 2030, it's a rather hard job to get right.

With that in mind, we still have one last forecast to cover. Coin Price Forecast offers its own Ethereum price prediction 2030. 

Ethereum (ETH) Technical Analysis

So far, we've analysed fundamental factors, but they aren't always reflected in the market price. Another crucial point is a technical analysis that examines data, mainly price and volume. 

Below is the summary of technical indicators on the monthly chart, indicating a good buying opportunity. 

The summary above is based on oscillators (Relative Strength Index, Stochastic %K, Average Directional Index, Momentum, MACD Level) and moving averages (Exponential Moving Average, Simple Moving Average).

Ethereum Price Predictions from Industry Experts

We've gathered several Ethereum price predictions published by prominent crypto strategists.

David Grider, Fundstrat

The price target for Ethereum by investment research firm Fundstrat is even more bullish than its Bitcoin prediction. The most recent one is $10,500. 

The asset is considered to have the best risk-reward ratio. Moreover, David Grider shared that companies might increase their pace of investing in crypto. This isn't only limited to hedging purposes; Ethereum provides utility and forms organisational models as a result. There "is really disruptive utility in this technology" in his own words.

Santiment

Crypto analytics firm Santiment agrees with many other specialists: Ethereum's growth is backed by robust fundamentals. We're seeing more and more new ETH addresses, and overall, there's a very bullish signal for this coin.

Michaël van de Poppe

Crypto analyst Michaël van de Poppe says that we should expect a surge of over 557% from its current price. However, he warns about a correction and suggests waiting before jumping in. 

As for the longer-term vision, he also expects a new impulse wave. "Ethereum to $10,000 this market cycle", as his tweet eloquently puts it.

Kaleo 

Trader Kaleo shared with his 57,200 followers that the smart contract protocol can skyrocket to $4,000. This forecast is certainly in line with many tables in our article.

Should You Trade or Invest in Ethereum?

Hopefully, this Ethereum price prediction overview gives you a general idea of where this asset is headed. While investing in Ethereum has made its earliest investors a lot of money, it's not too late. As you have just seen, the value is likely to go further up, so investing is still a viable option.

However, you can't take potential advantage of the crypto market's fluctuations when holding long term, also known as HODL. Plus, there are no guarantees in the crypto market. Even if you're pretty sure prices will be in an uptrend, new regulations or technologies might drive them down pretty sharply.

So, instead of purchasing Ether and letting it sit, you can actively trade it. Since the price of Ethereum rises and falls all the time, keep your eyes peeled for the optimal moment to enter the market. Besides, there's also an option to trade CFDs. This way, you'll be able to access the underlying asset at a lower cost, with ease of execution and the ability to go long or short.

To start your journey on the right path, sign up for a Libertex demo account. It allows you to see how price action develops and understand the market. Here, you can develop and test your strategy without any risks: automated and manual. And then, you'll be ready to enter the real market.

FAQ 

If something is still unclear, please, check out this FAQ section.

What Will Ethereum Be Worth in 2025?

Some sources predict that the asset will rise to around $4,000-$5,000, while others have even more promising figures, up to $10,000 and more.

Will Ethereum Have a Correction?

Ethereum was heading towards the $2,600 mark. Unlike BTC, it was a long but steady growth with no sudden spikes. We might see a correction soon. However, this is likely only a bump on the road that will quickly switch to price growth.

What Will Ethereum Be Worth in 2030?

There isn't a lot of data for 2030. From what we've gathered, ETH might not be in a particularly sweet position at around $5,000. 

Can Ethereum Reach $20,000?

Ethereum has firmly established itself to become the universal value settlement layer of the internet. At this point, we're nowhere near the value of $20,000, but it doesn't mean we won't be there in the future. 

Is Ethereum a Stable Coin?

It isn't. But some stable coins even use Ether, the native token of the Ethereum network, as collateral. One example of stable coins on the Ethereum blockchain is DAI.