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Ethereum: Will ETH Break Above $2000?


#Ethereum

The recent spike in the crypto prices has coincided with the strongest period for the cryptocurrency and blockchain market since the end of 2018. Since December 2020, the price of Ethereum has more than tripled, from less than $550 to more than $1,700 in mid-March.

For a long time, Ethereum has been the world’s second-largest cryptocurrency by market capitalization ($200T) after Bitcoin. And the question of whether ETH will break through to new heights is intriguing. We’ll be looking at multiple Ethereum price predictions to guide you through different opinions about this asset's future. 

What Is Ethereum (ETH)?

Ethereum is a decentralized, open-source, and distributed computing platform that facilitates smart contracts and decentralized applications (dApps). The project was proposed in 2013 by programmer Vitalik Buterin, crowdfunded in 2014, and fully launched on July 30, 2015. His idea was to elevate blockchain from just a public ledger to something more. Blockchain can be used to organize people, companies, money, and services. So, if anything can be written into code and used by a smart contract, Ethereum can be used to build it. 

For easier understanding, think of Ethereum as a programmable Bitcoin that makes it possible to create markets, shared ledgers, digital organizations, and other creations that need immutable data and agreements. All these possibilities take place without a middleman.

The ETH2 Upgrades

A crucial ongoing development with the Ethereum network is Ethereum 2.0 (“Serenity”). This is an upgrade to the already existing blockchain that is supposed to address the bottlenecks and increase the number of transactions. ETH2 has some fundamental changes in its structure and design:

One of the important changes coming with 2.0 is reduced transaction fees. Let’s elaborate. 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. 

Also, this improvement 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 ETH 2.0, 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’s are currently conducted with the Medalla Testnet and 20,000+ validators worldwide. This is the final stop before Phase 0 is deployed.

Main Drivers of ETH Price

When we speak about traditional assets such as stocks or bonds, we already know that their price is driven by economic factors such as inflation or government regulation, for example. Overall, ETH prices are strongly driven by popularity among investors, political or regulatory events, and investor expectations in the markets. We’ll describe what factors contribute to that. 

The Success of ETH 2.0

The success of Ethereum 2.0 has a direct positive effect with ETH prices spiking up. Some even refer to the launch of the upgrade as the firing gun going off. As Ethereum becomes more scalable via layer-2 tech and all questions are answered, it will bring more attention. This applies to 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 might already be present already. 

Ethereum Futures allow traders to speculate on ETH worth 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 grant exposure to the digital asset market without having to navigate crypto exchanges or set up digital wallets. This leads to a spike in investors that prefer the structure of traditional financial markets. 

Decentralized Finance

Ethereum is already active in the DeFi space - in fact, it is practically synonymous with it. It uses smart contracts to create protocols replicating existing financial services in a more transparent way. By itself, DeFi is already a trend, and the more demand there is for it, the more valuable it is. Consequently, the price of Ethereum will follow. 

Ethereum is playing a pivotal role in the growth of DeFi. Every major DeFi protocol is built on the Ethereum blockchain, and new projects join at a rapid rate. Even with crypto’s volatility, the long-term upward trend in DeFi is intact.

BTC/ETH Correlation

If we compare the BTC and ETH charts, we’ll see patterns of their price movements. Those correlate over a long period of time. No other cryptocurrency pairs show as many signs of extremely strong correlation. In this part of the market cycle, the BTC/ETH correlation is 0.81.

This phenomenon shows up especially vividly with large price fluctuations. Interestingly, 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 the price:

How Is Ethereum Doing in 2021?

ETH was worth $738.73 on January 1, 2021. But it hasn’t stayed there for a long time. This year, the prices rallied upwards across most cryptocurrencies. Ethereum reached its all-time high mark on February 20, 2021 - $2,036.29. Other currencies like Bitcoin, Litecoin, Bitcoin Cash, and Uniswap have also moved up substantially. 

As for the reasons why ETH price has jumped by 160% in 2021, there are four main ones:

  1. The ETH 2.0 upgrade is progressing well. Since it’s going to make Ethereum more scalable, secure, and sustainable, investors are already paying close attention and preparing for the upcoming stages. 
  2. It’s the rising adoption of Decentralized Finance that we mentioned above. Already, we 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 $60,000. 
  4. The ongoing fiscal and monetary policy in the USA offers incentivized a rush to risky assets by most investors. Congress is also considering the $1.9 trillion package for the near future.

Short-Term Ethereum Price Prediction for the Rest of 2021 

To start off our predictions, we’ll look at Trading Beasts. Out of all sources that we feature in this article, it is the most pessimistic. This platform shares that the average price for the year might be around $1,500. 

In the table and others going forward, we’re taking the value of $1,746.20 as the reference point for the current price. 

Month

Minimum Price

Maximum Price

Average Price

Change

April 2021

1,253.376

1,843.200

1,474.560

-19.10%

May 2021

1,269.568

1,867.011

1,493.609

-18.05%

June 2021

1,287.460

1,893.324

1,514.659

-16.90%

July 2021

1,305.896

1,920.435

1,536.348

-15.71%

August 2021

1,326.092

1,950.135

1,560.108

-14.40%

September 2021

1,347.428

1,981.512

1,585.209

-13.03%

October 2021

1,369.132

2,013.429

1,610.743

-11.63%

November 2021

1,392.611

2,047.958

1,638.366

-10.11%

December 2021

1,416.307

2,082.804

1,666.244

-8.58%

On the other side of the spectrum, we have Wallet Investor with a noticeably more optimistic overview of the future. The final perspective for 2021 is presented by Digital Coin Price. According to this forecast, Ethereum is going to be rising all throughout the year. As a highlight of the year, the price might be at $2,770 in December. 

Month

Average Price

Change

April 2021

$2,447.57

37.43%

May 2021

$2,348.91

31.89%

June 2021

$2,385.84

33.96%

July 2021

$2,520.57

41.53%

August 2021

$2,352.77

32.11%

September 2021

$2,603.45

46.18%

October 2021

$2,615.40

46.85%

November 2021

$2,508.51

40.85%

December 2021

$2,770.60

55.57%

Ethereum Price Prediction for 2022

The Ethereum price prediction first for 2022 is from Trading Beast. Once again, they’re not giving out particularly rosy figures. Still, it’s an improvement from their forecast for 2021. According to them, Ethereum might start the year at $1,696 and finish at $2,071. 

Month

Minimum Price

Maximum Price

Average Price

Change

January 2022

1,441.748

2,120.217

1,696.174

-6.94%

February 2022

1,468.102

2,158.973

1,727.178

-5.24%

March 2022

1,492.639

2,195.057

1,756.046

-3.65%

April 2022

1,520.559

2,236.116

1,788.893

-1.85%

May 2022

1,548.272

2,276.870

1,821.496

-0.06%

June 2022

1,577.561

2,319.943

1,855.954

1.83%

July 2022

1,606.475

2,362.463

1,889.970

3.69%

August 2022

1,636.877

2,407.172

1,925.738

5.66%

September 2022

1,667.750

2,452.573

1,962.058

7.65%

October 2022

1,698.015

2,497.082

1,997.665

9.60%

November 2022

1,729.634

2,543.580

2,034.864

11.64%

December 2022

1,760.513

2,588.990

2,071.192

13.64%

The table provided by Digital Coin Price shows an appreciation of up to 94%. Once again, the highest prices are expected toward the end of the year. Judging from the Digital Coin Price table, the lowest average price might be set at $2,728, and the highest average price might be at $3,468. 

Month

Average Price

Change

January 2022

$2,728.27

53.19%

February 2022

$3,244.45

82.17%

March 2022

$3,048.40

71.17%

April 2022

$3,136.27

76.1%

May 2022

$2,962.48

66.34%

June 2022

$3,186.24

78.9%

July 2022

$3,103.98

74.29%

August 2022

$3,102.75

74.22%

September 2022

$3,426.59

92.4%

October 2022

$3,228.41

81.27%

November 2022

$2,764.94

55.25%

December 2022

$3,468.44

94.75%

Ethereum Price Forecast for 2023-2025

According to Long Forecast, 2023 will be an interesting year for Ethereum. While it expects the coin to start strong - at around $4,000 - it also predicts the price to drop toward the end of the year. That said, even the end-year results show a significant appreciation compared to the current price. 

Month

Open

Low-High

Close

Month,%

Total,%

January

3798

3798-4714

4406

16.0%

205%

February

4406

4406-5443

5087

15.5%

252%

March

5087

4923-5665

5294

4.1%

267%

April

5294

5294-6571

6141

16.0%

325%

May

6141

4797-6141

5158

-16.0%

257%

June

5158

5158-6402

5983

16.0%

314%

July

5983

4674-5983

5026

-16.0%

248%

August

5026

3976-5026

4275

-14.9%

196%

September

4275

3340-4275

3591

-16.0%

149%

October

3591

2805-3591

3016

-16.0%

109%

November

3016

2671-3073

2872

-4.8%

98.9%

December

2872

2243-2872

2412

-16.0%

67.0%

According to Trading Beasts, 2024 might be a steadily good year for ETH. Starting off at around $2,500, the asset might move all the way to 2,950. Although it's not the highest value given (compared to other forecasts), we still needed to include a modest perspective as well. 

Month

Minimum Price

Maximum Price

Average Price

Change

January 2024

2,174.851

3,198.311

2,558.649

40.38%

February 2024

2,206.725

3,245.184

2,596.147

42.44%

March 2024

2,236.373

3,288.784

2,631.027

44.35%

April 2024

2,267.871

3,335.104

2,668.083

46.38%

May 2024

2,298.151

3,379.634

2,703.707

48.34%

June 2024

2,329.222

3,425.327

2,740.261

50.34%

July 2024

2,359.072

3,469.224

2,775.379

52.27%

August 2024

2,389.683

3,514.240

2,811.392

54.25%

September 2024

2,420.051

3,558.898

2,847.119

56.21%

October 2024

2,449.202

3,601.767

2,881.414

58.09%

November 2024

2,479.076

3,645.700

2,916.560

60.02%

December 2024

2,507.742

3,687.856

2,950.285

61.87%

The Ethereum price prediction 2025 we’ll be looking at was presented by Digital Coin Price. The average values are in the upper $4,000 range, but we also might be seeing figures like $5,000 and even $6,000.

Month

Average Price

Change

January 2025

$4,857.93

172.77%

February 2025

$5,848.26

228.37%

March 2025

$5,415.63

204.08%

April 2025

$5,571.25

212.82%

May 2025

$4,724.61

165.28%

June 2025

$5,120.50

187.51%

July 2025

$5,922.45

232.54%

August 2025

$6,059.75

240.25%

September 2025

$4,922.72

176.41%

October 2025

$4,740.24

166.16%

November 2025

$5,745.16

222.59%

December 2025

$5,787.19

224.95%

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 we have 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. 

Year

Mid-Year

Year-End

Tod/End,%

2030

$46,641

$49,866

+2,658%

Ethereum (ETH) Technical Analysis

So far, we’ve mostly analyzed fundamental factors. However, 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. 

Oscillators: 

Moving averages:

Ethereum has been moving in waves up and down, and now, we are facing strong resistance created at the 2,000 level. 

We might see one of the two scenarios playing out: 

We can expect some targets like 1999, 2200, and 2550. The next chart illustrates the target that comes from weekly Fibonacci. 

Ethereum Price Predictions from Industry Experts

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

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 advantage of the crypto market’s fluctuations when holding long term, also known as HODL. Plus, there are no guarantees with 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, there are plenty of opportunities for potential profit. Besides, there is also an option to trade CFDs. This way, you’ll be able to access the underlying asset at a lower cost, 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 with experience.

Why to trade with Libertex?

FAQ

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

Is Ethereum a Good Investment in 2021?

While the sentiment around market participants remains overwhelmingly bullish, Ethereum might be headed toward a correction. However, the technicals are still encouraging, and it might be a great time to open a long position. 

Is Ethereum Worth Buying?

The ETH 2.0 upgrade is highly anticipated, and the demand is already building up. In a few years, when it’s in full swing, the value may go through the roof. So, this year might be the last time when Ethereum before the New Ether issuance steals the show. 

What Will Ethereum Be Worth in 2025?

Some sources predict that the asset rise to be around $2,700, while others have even more promising figures - up to $4,000 and more.

Will Ethereum Have a Correction?

Ethereum has been surely heading towards the $2k 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 be in a particularly sweet position - as high as $40,000 or more. 

Can Ethereum Reach 20k?

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 20k, but it doesn’t mean we won’t be there in the next 10 years. 

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.

Is Now a Good Time to Buy Ethereum?

Quite possibly. There is a significant amount of money heading into DeFi, and as a result, it might bring about a steady rise in the price of Ethereum.

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