Ethereum Price Prediction
The evolution of the price of Ethereum cryptocurrency was similar to that of the Bitcoin cryptocurrency. Ethereum was started back in 2014 through an ICO. Back then, the price for 1 Ether was around 40 cents. Two years later the price reached about $ 1400.
Many projects (ICOs) have been built on the Ethereum blockchain, and all this created a high demand for the Ether cryptocurrency, any new ICO/Token acts as a catalyst for the price increase. FOMO (fear of missing the opportunity) also played a catalytic role. The question is, will the price of the Ethereum cryptocurrency exceed the maximum of $ 1400? I say YES, and in this article, I’ll explain why.
The price of Ethereum cryptocurrency in the next hype
Currently, decentralized finance is one of the most popular topics in the crypto space. Many DeFi projects gained public attention in recent months offering financial services worldwide. You’re probably wondering, what does DeFi have to do with the price of Ethereum cryptocurrency?
Ethereum version 2.0 allows you to become a network validator, provided you store 32 ETH. As in the case of Defi, it will lead to another wave of supply decline.
Almost all companies build DeFi projects on the Ethereum blockchain. In doing so, it stores Ethereum in projects by diminishing supply, similar to what happened in the past for ICOs.
At the moment of writing this article, Ethereum 2.0 is in the final tests, and with the official launch, it will bring a series of improvements to the Ethereum Blockchain. In addition, the transition is made from POW (proof of work) to POS (proof of stake), which is an advantage in collaborating with the DeFi ecosystem or decentralized finance.
I also took into account that the global crypto industry is still very small. Many have not heard about this phenomenon, still do not understand it, are still skeptical, etc.
Technical Analysis
According to some estimations, about 80% of crypto projects (tokens) are made on the Ethereum blockchain, which indicates the developers’ preference for this platform.
From a technical point of view, the price of Ethereum cryptocurrency is encouraging in the long run. Demand for the DeFi ecosystem, decentralized applications, and the release of Ethereum 2.0 can act as catalysts for the next hype, exceeding the $ 1400 threshold.
I didn’t mention the risks in this article does not mean that they do not exist. This article does not represent investment advice; you should do your analysis before deciding to invest. It is essential to know the product before purchase, whether it is physical or digital. Don’t invest more than you can afford to lose!
