Ethereum – Forecast summary
| Ethereum forecast: 2021 semester
Price: $ 2,500 to $ 3,000 Price controls: Market sentiment, COVID-19, Cash flow, Global economy |
Ethereum forecast: 1 year
Price: $ 3,500-5,000 Price Controls: Safe Shelter Status, Post COVID-19, Hawkish Central Banks? |
Ethereum forecast: 3 years
Price: $ 25,000 Price controls: global economy, crypto market sentiment, safe haven status |
Like most other crypts, Ethereum continues to bring new highs as it broke above $ 2,000 , reaching $ 2,130 , but then retreated to about $ 1,500, falling slightly below $ 1,300.on the last day of February, which was a very volatile day. Ethereum was the first to continue the bullish trend in February after a retreat in most of January and again in March after a retreat in the last week of February. The price broke above a record high of $ 1,427 in the first week of February as shoppers raised the price above its 2018 peak. ETH / USD got pretty close to that high at the beginning of the month, but eventually broke after a short-lived withdrawal. It was a major psychological hurdle that had to be removed, while the second was the $ 2,000 level, suggesting further bullish momentum in the Ethereum, while Bitcoin broke above $ 50,000 and is now heading for $ 60,000. The momentum of the crypts soon rebooted, with Bitcoin breaking above $ 45,000 after tesla 1,1740s , February 9th, there are some more upcoming events for the Ethereum, as listed below, which is likely to increase the bullish momentum.
The crypto market was amid a strong bullish race when we released our long-term forecast for Ethereum, which rose from below $ 100 in March to over $ 400 in August, representing a very impressive 400% increase in value. My colleague Arslan predicted that the bullish momentum will continue in the fourth quarter of 2020, and he was right about that. Except that the bullish run has become another “gold rush” for cryptocurrencies, similar to what we witnessed in 2017, although it was somewhat larger for some digital currencies. Ethereum was one of these currencies and joined the crypto market upswing led by Bitcoin in the usual way.
By early January, Bitcoin had surpassed $ 40,000, while Ethereum, according to most Ether brokers, was fairly close to the $ 1,427 peak, although in the last days of the second week of January, after the retreat, Ethereum customers failed on their first attempt. Judging by the funds behind Ethereum, and especially the current mood in the financial markets and the cryptocurrency market, we can say that not long after, Ethereum will overturn the 2017 peak and make something new sometime this year. , probably sooner or later, judging by pricing and volatility in recent months.
Recent changes in the price of Ethereum
| Period | Change ($) | % Change |
| 3 months | +1,218 | +235% |
| 6 months | +1,415 | +404% |
| 1 year | +1,510 | +493% |
| 3 years | +865 | +79% |
| 5 years | +1,624 | +9,800% |
Ethereum found itself in the middle of a huge bullish race in cryptocurrencies; While the majority of the market has risen higher, some important cryptos have remained stagnant, Ethereum is among the best performing altcoins, behind [[Bitcoin]. There are quite a few reasons for this, the mood for security reasons shows a significant upward trend for digital currencies when no son’s currency is safe. The coronavirus and declining global economy have turned investors to cryptocurrencies, but political changes around the world have added fuel to this bullish momentum, which has brought huge benefits to Ethereum as it has attracted large investors. Other foundations have been positive for Ethereum as the full implementation of Ethereum 2.0 is underway,
Upcoming events that affect the price of Ethereum
Coming soon Ethereum Improvement Proposal (EIP) 1559
Upcoming transformation from DNATags ™ Ethereum to Cardano Goguen.
Ethereum prediction for the next 5 years
Cryptocurrencies are suddenly drawing all attention to financial markets. While certain stocks, such as Amazon and Tesla, performed extremely well during COVID-19, the crypto market outperformed everything. The value of this market has multiplied as digital currencies have gained safe haven status. Bitcoin rose above $ 40,000 last week, while Ethereum followed suit. In this article, we examine the factors that sustain ETH / USD growth and forecasts for the future.
COVID-19 has proven to be extremely useful for cryptocurrencies. Traditionally, cryptocurrencies are seen as a risk instrument over their short life, which means that their value increases when market sentiment is positive and traders seek higher returns on riskier financial instruments. When sentiment becomes negative, risk assets become declining, and so did Ethereum when the coronavirus first referred to Europe last February. Markets were still in normal mode at the time, and cryptocurrencies plummeted. But since mid-March 2020, the world has changed and cryptocurrencies have shifted from risky assets to safe havens that merchants turn to for safety in times of trouble.
Bitcoin leads the cryptographic market as always, but Ethereum has been a sure haven for profits for almost a year. There has been a severe collapse in every country in the world in the spring of 2020, during the closing period, and despite the summer recovery, the world economy is still suffering, with some economies such as the eurozone and the EU likely to double-dip recession. Governments and central banks have been pouring excessive amounts of cash without stopping and for at least a few years to continue. In this environment, due to the global economic collapse and the excessive amount of cash in the market, no traditional currency is secure, so traders and investors are increasingly turning to cryptocurrencies.
In addition to economic hardships, global politics has also helped boost up cryptocurrencies. The Western political landscape is changing, making the situation increasingly precarious from an economic and social point of view. On the other side of the planet, China seems to be pushing back private capital and business people. Jack Ma, the founder of Alibaba and the Ant Group, has not been seen in a while, and some even claim to be missing. Some of the funds have been frozen, causing panic among other wealthy Chinese citizens who transfer their money to cryptocurrencies. So the digital market is benefiting from this new shelter status, and as explained below, Ethereum is likely to retain that status as DeFi transactions continue to soar.
Surgical DeFi transactions are great for Ethereum
Growing uncertainty for investors, or anyone with cash on the issue, has led to increased demand for cryptocurrencies, which in turn has increased the use of the decentralized financial (DeFi) system. In fact, during this time, DeFi transactions have skyrocketed. In January of this year, the total closed value (TVL) in DeFi exceeded $ 20 billion for the first time. This means that more than $ 20 billion in capital is placed in the system under various DeFi protocols. This increase is due to the fact that DeFi is not covered by central banks and other intermediary institutions.
This is great for Ethereum, as much of the DeFi system is built on the Ethereum network. Therefore, the faster DeFi transactions grow, the more Ethereum benefits. So the rapid growth of the Ethereum ecosystem over the past year is primarily the result of growing DeFi. In the middle of last year, the total value locked in DeFi transactions stood at $ 1 billion. Now its value has increased about 20-fold, and this is expected to continue in the future as investor demand for cryptocurrencies grows and attracts both miners and speculators into the game.
Ethereum futures volumes remain at record highs
The monthly volume of Ethereum has also increased since mid-2020, and the pace continues to grow. Ethereum’s futures volume reached $ 257.06 billion in December. This represents an increase of 4.4% compared to the previous month. The spot volume of cryptocurrency exchanges also reached a record high in December, at $ 379 billion. All these data mean that the Ethereum network will continue to grow, which will bring additional benefits to the cryptocurrency. It also serves as a cushion when the crypto market collapses. In this case, Ethereum would lose significant value but remain well above pre-coronavirus trading levels. It’s not like this is about to happen, but we should just consider it.
Ethereum 2.0 and other updates
The Ethereum network is based on decentralized funding and DeFi is known as “Lego Money”. DeFi orders can be broken down into separate parts, which can then be reassembled to create other order items. Smart contracts, decentralized applications (DApps), and protocols are mostly run on the decentralized Ethereum network.
But as the amount of DeFi increases, Layer 1 blockchain networks become less reliable for such a large amount of transactions. These transactions have exceeded $ 20 billion since December 2020, as mentioned above, so they are at their limits. Layer 1 blockchain capacity for processing transactions is quite limited, which means that the number of transactions per second (TPS) is limited. This is expected to be resolved with the introduction of Ethereum 2.0, launched on December 1, but not yet fully operational. According to Vitalik Buterin, sometime in 2021 should be fully implemented.
Ethereum 2.0 is expected to become a reliable super-fast version of the previous Ethereum blockchain version. The move to a Power of Stake (PoS) consensus algorithm and the fragmentation of Layer 2 payment channels make this possible. Layer 2 payment channels build on these existing blockchains. It significantly increases the speed of transactions, which means that Tier 2 transactions are more in line with everyday retail transactions.
Technical analysis
The Ethereum started at around $ 10 and traded at that level from 2015 to early 2017 when it began its bullish move and rose above $ 400 by June of that year. This represents a 4000% increase in value. This was the first sign that this cryptocurrency would be a favorite of the market and that buyers would take control. After trading between $ 200 and $ 400 for a few months, the extraordinary demand for cryptocurrencies increased and the Ethereum rose higher, approaching $ 1,500 by January of the following year. But that wasn’t the last, and the big bullish move was followed by a big bearish turnaround in 2018 that took the price to 20 SMAs (gray) on the monthly chart, where it made a profit, although the rebound failed. it takes too long. The bearish trend continued again, pushing the price below the moving average, which turned into resistance and remained there until August last year. The decline continued, with the ETH / USD falling slightly below $ 100, but this was not a proper break and rose above this level again. Then Ethereum traded to the side until October 2020, when the eruption finally represented by the 3 large bullish candlesticks.
Let’s see how bullish this monthly candlestick will be
On the weekly time frame chart, the area around the $ 100 level became support for Ethereum and it lasted for almost 2 years, while the area around $ 400 provided resistance and kept the price in a range until the summer of 2020. Moving averages also helped to keep the price at the highest level, first at 100 SMA (green), which provided resistance, and then at 200 SMA (purple). Ethereum rose above 200 SMA last summer as demand for cryptocurrencies increased and then this moving average became support. After a slight setback in August and September, despite PayPal accepting Ethereum as one of the cryptographers for transactions on its site, the 20 SMAs caught up with the weekly list and began pushing Ethereum higher. Eventually, the upward momentum accelerated, and in early January we saw the largest weekly candlestick to date. The price has risen to $ 1,340, but this week looks like a bear. However, this candlestick is only half the size of the previous one, which means sales pressure this week was nowhere near as strong as last week’s customer pressure.
The price has left 20 SMAs since October
In the daily time frame, the bullish trend since October is also visible. The price withdrew during September, but the 100 SMA (green) caught up and immediately became a subsidy. He began to push the Ethereum higher as he moved higher than the other moving averages, 20 MA low (gray) and 20 SMA high (purple). The first 10 days of January were extremely bullish as the value of the Ethereum almost doubled, but after forming a downside-down hammer, which is a bearish turn signal, the price turned backwards. However, as the other time frame charts have shown, the decline appears to have stopped after the 1-day crash. Moving averages are approaching and buyers seem to be jumping in again, the price starting to rise. In summary, the basics and technical elements are higher for Ethereum, although severe retraction is not in the picture.