Ethereum: ETH everything you want to know to predict for long term

Disclaimer: The datasets shared in the following article are compiled from a group of online resources and do not reflect FoxCryptoNews' own research on the subject.

Ethereum Currently

The Ethereum price movement shows that the bulls have worn off after an unusual rally in the previous five days. Given the immense hurdles this uptrend is currently facing, it is likely to return to credible support levels to refuel. The ensuing rise could push ETH to key psychological levels.

Around the $1279 support, where Ethereum price shows notable resistance, there was a strong consolidation and sideways movement. However, the breakout was almost noticeable as ETH rallied 25.1% in just five days, making a local high of $1,595.

Ethereum price could break through this barrier and head towards the psychologically important $2,000 level, depending on the state of the market and bullish momentum. Investors will gain 44% overall with this move, suggesting that this is where ETH's upside potential is limited. 

All things considered, buying Ethereum should be a good long-term investment, right? Most experts have positive predictions for ETH. Furthermore, most of the long-term Ethereum price forecasts are optimistic.

ETH Look back to the past

Given that Ethereum has seen phenomenal growth in recent years, it is not surprising that investors are placing significant bets on this cryptocurrency. Ethereum rallied after Bitcoin price fell in 2020, following a prolonged period of stagnation in 2018 and 2019.

Interestingly, the majority of the altcoin market remains dormant even after the halving. One of the few that has quickly regained momentum is Ethereum. Ethereum is up 201% from its 2017 high at the end of 2021.

Ethereum could have such a spike thanks to a number of important factors. One of them is an update to the Ethereum network, specifically the move to Ethereum 2.0. Another reason is the Ethereum tokenization debate. With the move to Ethereum 2.0, the ether token will be even more deflationary. Therefore, there will not be many tokens in the market to meet the growing demand. The results may further fuel the development of Ethereum in the future.

In this article, we will take a quick look at the recent performance of the cryptocurrency market, paying special attention to market capitalization and volume. Predictions from prominent analysts and platforms are summarized at the end, along with a look at the Fear & Greed Index to gauge market sentiment.

Ethereum indication analysis

Ethereum, at press time, is trading at $1,624, a significant increase from last week. It has gained more than 18.1% in the past seven days. Thanks to the high ROI, the initial investors tripled their investment each year. It currently has a market capitalization of $183.2 billion

Ether's spot market activity has also increased, with the cryptocurrency having overtaken Bitcoin as the most traded coin on Coinbase some time ago. Furthermore, while Ether's trading volume accounted for 33.4% of total revenue recorded for the week ending July 29, Bitcoin's volume hit 32%, with SOL in last place.

While it can be difficult to forecast the price of a volatile cryptocurrency, most experts agree that ETH could break through the $4,000 barrier again in 2022. And according to recent forecasts. By Bloomberg Intelligence analyst Mike McGlone, Ethereum price will close later this year between $4,000 and $4,500.

Furthermore, according to a report by Kaiko on August 1, ETH's market share in terms of trading volume will reach 50% for the first time on par with Bitcoin by 2022.

According to Kaiko, ETH outperformed Bitcoin in July due to significant inflows into the spot and derivatives markets. Most exchanges have seen this increase, which could be a sign of returning investors. Furthermore, the increase in average transaction size is in stark contrast to what has been seen so far during the 2022 recession.

On August 2, the open interest (OI) of Deribit Ether Options priced at $5.6 billion outperformed Bitcoin's open interest (OI) price of $4.6 billion by 32%. This is the first time in history that ETH has outperformed BTC in the options market.

In fact, most of the crypto influencers are bullish on Ethereum and predict that it will hit amazing highs.

With anticipation surrounding the merger, Ethereum became the talk of the town. The second-largest cryptocurrency has beaten the crypto king to become the most requested cryptocurrency. A quick split of the volume by market capitalization of both cryptocurrencies will reveal that Ethereum's relative volume is in fact larger than that of Bitcoin.

While the Ethereum community in general is looking forward to an eco-friendly PoS upgrade, a faction has emerged in favor of a hard fork that will retain the energy-intensive PoW model. 

This faction mainly consists of miners who risk losing their investment in expensive mining equipment, as upgrading would render their business model useless. Popular Chinese miner Chandler Guo announced on Twitter last month that ETHPoW is "coming soon"

Binance clarified that in the event the fork generates a new token, the ETH token will be reserved for the Ethereum PoS chain, adding that “withdrawals for forked tokens will be supported.” Stablecoin projects Tether and Circle have reiterated their exclusive support for the Ethereum PoS chain after the merger.

TradingView expressed a similar view at the time this article was written, and its technical analysis of Ethereum price shows that it is a "Buy" signal for ETH.

In fact, Henri Arslanian, head of PwC Crypto stated in an edition of First Mover that “Ethereum is the only show in town.” However, investors will need to see increased demand and performance for Ether prices to continue to rise.

According to Mudrex's Edul Patel,

“The merger will complete the transition from Ethereum to PoS, making it extremely energy efficient and convenient for payments. That will only help with massive use cases for Ethereum, ultimately increasing demand for the ETH token. "

JPMorgan Chase analyst Kenneth Worthington expressed confidence in Merge's ability to benefit stakeholders like Coinbase. Worthington believes Coinbase is positioned to take advantage of the merger by "maximizing the value of Eth holdings for its customers."

Prominent venture capitalist Fred Wilson posted a blog on August 15 that describes the changes that are coming after the merger. Wilson explained that along with reducing carbon emissions that will make Ethereum more environmentally friendly, the merger will upset the balance between supply and demand for ether. Bankless demonstrated this shift in his blog post, where he predicts a structured cash flow of $0.3 million per day, as opposed to the current structural flow of $18 million per day. day. 

According to investor and creator of crypto research and media organization Token Metrics Ian Balina, “I think Ethereum could hit $8,000.”

Ethereum smart-contract

Regarding the merger, the Ethereum community hailed it as a huge success story. Buterin cited a study by an Ethereum researcher, Justin Drake, which showed that “merging will reduce global electricity consumption by 0.2%”.

It also reduces the time to mine an ETH block from 13 seconds to 12 seconds. The merger marks the completion of 55% of Ethereum's journey towards greater scalability and sustainability. 

Concerns have also been raised about censorship in the Ethereum ecosystem following the merger. About half of Ethereum blocks were compliant with the Office of Foreign Assets Control (OFAC) when MEV-Boost was implemented. As Ethereum has upgraded to PoS consensus, MEV-Boost has been enabled for a more representative distribution of block proposers, rather than a small pool of PoW miners. This development raised concerns about censorship under OFAC.  

Interestingly, while many are eagerly awaiting Ethereum Fusion and consolidating their assets in bullish anticipation, there is a group of investors who are not confident in the successful launch of Fusion. These investors bet on a glitch in the rollout, hoping that the update would crash. While some of these investors have started investing in rival tokens for profit, others are doing so out of an abundance of caution to protect their portfolios. . This has been corroborated by the volatility seen in indicators like daily active users and the price action of Ethereum killers like Avalanche, Solana, Cardano, etc in the pre-merger period.

Most Ethereum price forecasts indicate that ETH can predict huge growth in the coming years.

According to Santiment, active Ethereum addresses have dropped to a 4-month low with continued weakness post-merger and no interest in all-time highs as prices have stalled. October 17 is the first day that there are less than 400,000 addresses on the network since June 26.

So what about flipping? Can this altcoin overtake Bitcoin on the charts in the future? That could happen. In fact, according to BlockchainCenter, ETH has outperformed BTC in several key metrics.

For example, consider the number of transactions and the total transaction fees. In both respects, ETH is ahead of BTC.

In contrast, the traditional definition of 'change' is related to the market capitalization of cryptocurrencies. Likewise, ETH is down 48.2% from BTC's market cap.

Similarly, Google search interest for ETH is 76% lower than that of BTC.

However, keep in mind that a lot can change during these years, especially in a volatile market like cryptocurrency. Predictions from top analysts vary widely, but even the most conservative can yield respectable returns to anyone who chooses to invest in Ethereum.

Data from blockchain analytics firm Santiment shows that the supply of ETH held by top addresses on crypto exchanges has increased since the beginning of June. On the other hand, the supply of ETH held by major non-exchange addresses i.e. ETH in hardware wallets, digital wallets, etc it has been decreasing since the beginning of June. But why June? Because that's the scheduled time for Fusion to be revealed to the community.

Santiment tweeted last week that over the past 3 months, whales have increased their holdings on the exchange by 78%.  

So what does this mean? That means Ethereum whales are moving their ETH to exchanges. Major ETH miners are moving their supply out of cold storage and onto exchanges, most likely to facilitate quick transactions if needed.

In the run-up to the merger, several exchanges like Coinbase and Binance have announced that they will be suspending all deposits and withdrawals of ETH and ERC-20 tokens to ensure the transition takes place. out smoothly.

It is possible that the whales moved their assets to exchanges to pre-dispose them in anticipation of a price drop after the Merger. Another possibility is that they wait until consolidation to take in ETH's price action.

Now let's see what popular platforms and analysts have to say about where they think Ethereum will be in 2025 and 2030.

ETH for the short-term 2025

According to Changelly, the lowest expected price of ETH in 2025 is $7,336.62, while the maximum possible price is $8,984.84. Business expenses will be around $7,606.30.

CoinDCX also predicts that ETH could have a relatively successful year in 2025 as there may not be a major negative impact on the asset. There is little doubt that the bulls can be well-positioned and sustain a substantial rally throughout the year. The asset is forecast to reach $11,317 by the end of the first half of 2025, although there may be short-term pullbacks.

However, you must keep in mind that the year is 2025 and many of these predictions are based on the successful launch and operation of Ethereum 2.0. And that means Ethereum has to deal with expensive gas fees too. Furthermore, global legal and regulatory frameworks have yet to consistently support cryptocurrencies. 

However, even as newer and more eco-friendly technologies have been developed, analysts have often asserted that Ethereum's "pioneering advantage" has positioned it for long-term success, despite the new competition. The price predictions seem conceivable as aside from its expected upgrade, Ethereum is predicted to be used more often than ever in DApp development.

ETH for the long-term 2030

Changelly also argues that the ETH price in 2030 has been estimated by crypto experts after years of tracking the price. It will trade for a minimum of $48,357.62 and a maximum of $57,877.63. So, on average, she can predict that by 2030, the ETH price will be around $49,740.33.

Long-term Ethereum price estimates can be a useful tool for analyzing the market and learning how major platforms predict future developments like the Ethereum 2.0 upgrade to affect the price.

For example, Crypto-Rating predicts that by 2030, the value of Ethereum will likely exceed $100,000.

Both Pantera Capital CEO Dan Morehead and deVEre Group founder Nigel Green also predict that within the next ten years, the ETH price will reach $100,000.

Does it sound too much? Well, the functional capabilities of the network, such as interoperability, security, and transaction speed, will change radically as a result of Ethereum 2.0. If these and other related reforms are successfully implemented, sentiment towards ETH will change from slightly favorable to strongly bullish. This will give Ethereum the opportunity to completely rewrite the rules of the crypto game.

Summary

While some of these investors have started investing in rival tokens for profit, others are doing so out of an abundance of caution to protect their portfolios. . This was corroborated by the volatility seen in metrics like daily active users and the price action of Ethereum killers like Avalanche, Solana, Cardano, etc. one month.

There is a lot of hope that the first smart contract blockchain will survive this testing phase, despite Ethereum's competition and other factors contributing to its continued instability.

Oct 30, 2022