The Difficulty of Ethereum Price Forecasting

Some experts say Ethereum price prediction is much more complicated than Bitcoin value estimation. Bitcoin has an important antecedent, the gold price. Ultimately, many analysts are using the gold analogy, comparing Bitcoin’s capitalization to gold capitalization on the market. But smart contracts are something new, never seen before in human history. It’s challenging to comprehend where this path will lead, which use cases we will see in the Ethereum network. Which incomes will these solutions generate? And so, how much is this cryptocurrency, ether, worth?

 Another essential difference is Bitcoin stayed unique in the last 12 years. No cryptocurrency could even get nearly so important and stable than this one. There is practically no competition for Bitcoin. Ethereum, in comparison, is a highly competitive product. Dozens of alternative coins are claiming to be the newest Ethereum, trying to dethrone it. (Like Polkadot, Binance Smart Chain network, Cardano, EOS, Tron, naming only a few of them.)

Ethereum Chain Struggling With Scalability

So, Ethereum prophecies are limited–only by our imagination. Similar to Bitcoin predictions, also Ethereum prophecies get very high and bold sometimes. The bullish sentiment of this year is only increasing the courage of the analysts. (ETH reached a new all-time high on February 20, at $2,036.29.)

But at the same time, Ethereum is also struggling with scalability issues and high transaction fees. Many dApps (decentralized applications) moved to other blockchains or chose others instead. (Allegedly, the developers can solve the scaling problems soon.) Upgrades are in progress, also increasing the uncertainties in the market. So, it’s no wonder there are many pessimistic investors and analysts in the short term. Some expect the price to fall below $1,000 soon.

But let’s see the highest Ethereum price forecasts.

9. $2,600 in Short Term

In January, Michaël van de Poppe, a famous analyst, predicted a 2,600 USD short-term price for Ethereum. He based the forecast on Fibonacci-levels (technical analysis).

8. Ethereum Price Forecast 2,777–3,472, But in 2024 Only

The algorithm on the page TradingBeastsforecasts a 2,777.7 average Ethereum price in December 2024. But the estimated maximum is $3,472, and the minimum, $2361. “We update our predictions daily working with historical data and using a combination of linear and polynomial regressions”–they wrote about their methods. The numbers for December 2021 are $1,616.6 on average, with a $1,374 minimum and 2,020.8 maximum, not significantly different from the last weeks’ ether prices.

7. Touching 4,000 in December Already?

Another algorithmic site, Longforecast.com, is more optimistic, if we may say so in the case of machine-aided analysis. They expect $3811 by year-end already based on “mathematical and statistical methods of prediction”. But with a low and high of $3285 and $4078. By these numbers, Ethereum could more than double in 9 months. (The actual price is $1684.) 

6. May Surge to 7,405, But Be Very Patient!

The site Digitalcoinpriceestimates a continuously surging Ethereum price in the next years. End of 2021, only $2362, but $2,950 for 2022, $3,453 in 2023, etc.. Finally, $7,405 in 2028, in more than seven years. The predictions “are made based on historical data.”

(Don’t miss my post about the 9 Boldest Bitcoin Price Predictions in 2021)

5. $9,000 Highs, in 2021 Already?

But no more robots. James Todaro, a managing partner at Blacktown Capital, believes $9,000 Ethereum is possible in 2021–wrote Investorplace at the beginning of January. That was a much higher expectation in that period than most others. Many analysts only dared to mention 500-1,000 USD ether price targets.

4. A Nice Ethereum Price Forecast Over $10,001

Crypto analyst, influencer, and trader Lark Davis expect Ethereum to appreciate at least $10,001, “likely much higher than that”.

The number of long-term Ethereum holders is rising as whales appear to eat up Ethereum supplies. This week we had the second-biggest Ethereum outflow from centralized exchanges. When the price went down, buyers stepped up. The undisputed home of NFTs is Ethereum–cited DailyHodl.

3. Growing Popularity May Elevate Ethereum to $10,500

In January, Fundstrat’s David Grider raisedthe Ethereum price target to 10,500. His prediction was based on the growing popularity of the Ethereum blockchain and decentralized finance (Defi) applications.

2. $18,000 for Rising Staking Revenues

Joey Krug at Pantera Capital pointed to Ethereum’s dominance in smart contract transactions and Defi. Also mentioned Ethereum’s rising staking revenues since the start of 2020. The result is a high 18k value. (DailyHodl)

1. $20,000–Is Ethereum Better Than Bitcoin?

Two experts won the imaginary race for the highest Ethereum price forecast this year. So far. D. H. Taylor analyst underpinned his $20,000 call in January with Metcalf’s law and also said Ethereum might repeat what Bitcoin did before. This law states that “the rate of growth of a network can be mathematically mapped as the square of the number of users.”

Raoul Pal, Real Vision Group & Global Macro Investor, also named a $20,000 price in February. He suggested that “the adoption actually of market cap versus the number of wallet addresses of Ethereum is significantly ahead of where Bitcoin was.”

(Sources: SeekingAlpha, DailyHodl, BreakingCrypto)

 +1: Tyler Winklevoss’ Profecy: $75,000

It was in December 2020, so it isn’t on this list, but it’s worth mention. Tyler Winklevoss explained in a videohow one Ethereum could reach at least $75,000 per coin. That may be one of the top calls for the number two cryptocurrency so far. He’s also made a bold Bitcoin prediction of 500k.

Biases, Chances, Ethereum Perma-Bulls

Nothing, but absolutely nothing guarantees the analysts are right, and any prediction is useful–the same I wrote about Bitcoin forecasts last week is also true here. Most of the professionals are heavily engaged in the cryptocurrency-industry. Many bought a lot of Ethereum before. They are therefore biased and may not have made a fully objective statement. (Me either. Read the disclaimer.)

But if only a part of what they say is true, we may see a further nice Ethereum bull run, skyrocketing prices. So, fasten your seat belts!

Disclaimer

I’m not a certified financial advisor nor a certified financial analyst, accountant, nor lawyer. The contents on my site and in my posts are for informational and entertainment purposes and reflecting my collection of data, ideas, opinions. Please, do your proper research or consult your advisors before making any investment or financial or legal decisions.

At the time of writing: I’m long in gold miner stocks, silver, platinum, copper, multinational energy companies, Anglo American, and various cryptocurrencies. Short in the German DAX and the VIX index.

(Photos:  Pixabay.com.)