Ethereum Price Prediction 2021
Speculation is at the heart of every cryptocurrency project. Will it launch? Will it be useful? Will it raise a lot of capital at ICO? Will it be the crown jewel in an investor’s portfolio? Will it inspire developers? Will it inspire traders? These are just a few of the questions typically asked about a project, helping to build up its hype, which in turn drives demand and helps the price change (and ideally soar).
Some people carefully inspect the data from the past, combing through charts looking for data patterns, whereas some read the news and try to withdraw sentiment from what the media is saying. Others just go with their gut feeling.
In this article, we will explore a bit more about what Ethereum is and why it’s price changes are so interesting to those in the cryptocurrency industry, as well as collating some opinions from experts and algorithms alike.
What is Ethereum and why is its price so important?
Open-source Ethereum uses blockchain technology to create and run decentralized digital applications that we call Dapps. These Dapps allow users to make deals and transact directly with one another without the need for a middleman, which is pretty exciting if you’re a developer with a big idea. It allows those with visions to create tools that do things like bypass banks, payment gateways, and lawyers, or to raise money through a crowdfunding campaign. These Dapps can even help you buy collectables, sell assets or earn interest on your crypto holdings, as long as the tech is sufficiently designed to do so.
Rather than working from one centralized location or server, Ethereum is decentralized, operating on a global network of computers that collaborate constantly. The work they are doing as a collective is to run smart contracts, which is another industry term for these applications that are being run. A smart contract is, by design, tamper-proof, which makes it highly trustworthy, as it executes only when certain terms are met.
Knowing the basics of what it does, why are we so concerned with its price, rather than its technological potential? Well, cryptocurrency, like any market, appeals to people for a different number of reasons, and for many that reason is financial. When Ethereum launched as an ICO (initial coin offering) in 2014, it could be purchased in Bitcoin at a price of roughly $0.3 per ETH. Fast forward to 2021 and 1 ETH has already edged over $2,000, doing so towards the end of February. Those who invested as little as $150 on the ICO would now have enough ETH to be considered a millionaire in USD.
The price is currently hovering around $1,500, but few expect it to stay here, in fact, many predict that 2021 will see further parabolic growth for Ethereum, which started the year at just $750. Knowing that it could double in a short amount of time, how far can the price really go, and where is the top?
Market prediction for 2021
Below, we have sourced some professional opinions and algorithmic predictions for Ethereum’s price growth in 2021. These are not our opinions and this is not financial advice.
Prediction 1 — InvestingCube
InvestingCube is a free news site for market analysis, news, and education. They have pointed out in their February 2021 price prediction report that the growth of Ethereum’s price is related to three factors:
- The launch of Ethereum 2.0, a major network upgrade
- The rising adoption of Decentralized Finance (DeFi)
- It’s strong potential as the best alternative to Bitcoin for retail applications and as a store of wealth
Their prediction for 2021 is that ETH will go past $2,500.
Prediction 2 — LongForecast
LongForecast is an algorithmic tool that uses past data and market indicators to predict future prices for dozens of cryptocurrencies.
Their prediction for the year-high price of Ethereum in 2021 is $2,707, however, their price predictions change frequently, so this figure may change by the time of publishing. They predict the price to close the year at around $2,500.
Prediction 3 — FXLeaders
FX Leaders is one of the leading providers of real-time market news, market analysis, trade ideas, trade recommendations and forex signals for Forex trading, but as well as foreign currencies, they assess cryptocurrencies like Ethereum with a critical lens.
Before making their 2021 Ethereum Price Prediction, FXLeader highlights market sentiment, the effects of Covid-19, cash flows, the surge of DeFi, the launch of Ethereum 2.0, and a volatile global economy as major factors for the growth of Ethereum’s price.
Their prediction is a vague, yet agreeable, $2,500 to $3,000.
Expert Predictions
The previous predictions all came during February and March, which gives them a lot more data to work with than anyone who made their guesses at the turn of the year. Out of curiosity, we have found some of those predictions from experts and financial websites, each of which was way off the mark.
- Simon Dedic from Blockfyre predicted $800
- Mike McGlone of Bloomberg predicted $500–700
- WalletInvestor.com predicted $872
- DigitalCoinPrice.com predicted $1493 (so far the closest guess)
- James Todaro from Blocktown Capital predicts $9,000, a very bullish prediction, but in this market, it’s certainly now impossible.
Our verdict
Perhaps the biggest growth potential for 2021 comes from international stimulus packages and many people choosing to invest this money in digital assets. This spring could see another price surge, but it’s hard to say how far. We won’t make an exact prediction, but we think it could comfortably reach $3,000.
Photo Source: CoinMarketCap, Depositphotos
