Predicting the price of highly volatile actives like cryptocurrencies is a tough task as even thorough analysis cannot guarantee the right forecast. Being at the forefront of the most actual cryptocurrency news, Login Casino explains the core factors that can influence the price of Ethereum in 2021 and gives even a more long-lasting forecast.
How is the Ethereum classic price prediction made?
Why does Ethereum attract a lot of attention?
Being the second most popular cryptocurrency in the world, Ethereum is the object for dozens of articles, including the predicting ones. The huge capitalization of the coin, which is close to $200B at the beginning of February 2021 (Bitcoin has about $700B), attracts a lot of attention to this currency from diverse sides and not only investors.
Thus, compared to Bitcoin, Ethereum's blockchain code can be used to run Android and iOS applications, the value of the coin is much closer for using it in the retail (compared to BTC's huge cost per token), while the mining process is more diversified and doesn't rely on costly ASICs. To provide a deeper insight into the history of Ether's creation, we created a separate material, where the comparison of Ethereum vs. Bitcoin was also made. All these aspects cause enough attention around ETH and its price.
Factors that influence ETH forecast
The technological nature of cryptocurrencies was supposed to make the predicting process easier, but the economic demand/supply laws that are based on human psychology make it almost impossible. Thus, there are multiple factors of diverse nature that can influence the price of Ethereum:
1. Global news. The result of the US presidential election, for example, is among the factors that can have an impact on the price of cryptos. Thus, a more loyal Biden means not such strained relations with China or Russia, which is supposed to shake the digital coins' price less.
At the same time, the protests in Russia forced the US president to react and announce sanctions against some Russians, which can overgrow into a wider list of restrictions.
The invention of the COVID-19 vaccine and its successful implementation will presumably lead to opening the international borders and trade. The news alike has a huge impact on the price of cryptocurrencies, including ETH, so the global news is among the most important factors before making forecasts.
2. Inflation of fiat money. Interestingly, but this item can also depend on the previous one. Thus, Biden's election can lead to huge inflation as some experts expect an almost 2-trillion stimulus injection into the economy, which will automatically lead to huge depreciation of fiat money.
However, fiat money inflation is quite an independent process and doesn't hinge on the second name of the particular president. National financial institutions use the unique power gladly and print the cash that is not supported by the real capital. In this case, the diversified cryptocurrency like Ethereum comes to the rescue and helps to create the exchange value that doesn't rely on tricky governmental power.
3. Bitcoin price. There are no doubts that the headliner of most cryptocurrency news is Bitcoin. Due to incredible $900B capitalization, which means about half of all the crypto value, sharp changes in the BTC price influence the other digital assets, including ETH. Of course, the correlation between the two cryptos can be different on the distance, but sharp changes multiplied by the natural volatility can significantly concern the investors and crypto holders.
4. Legislation. Even though the global financial institutions are on the way to accepting cryptocurrencies, official legislative changes can slow down or facilitate the process. Here we should mention the appearance of numerous digital currencies, which are developed by governments and are much closer to fiat money by their nature, and similar to cryptos only in the technical aspects like the appliance of blockchain.
It means that one has to be attentive concerning the legislative steps and doesn't confuse the terms (digital money and cryptocurrencies). However, there is no doubt that the development of digital currencies will influence the whole digital assets market.
5. Technical aspects. Although blockchain stocks are reviewed as the undeniably interesting investing option due to the system's reliability in providing crypto transactions, technologies are regularly improving. Even if we exclude the potential break of blockchain, the mining technologies and all the related elements also influence the prices of cryptocurrencies. As we mentioned above, even the two leaders (BTC and ETH) have significant technological differences, which means that a breakthrough in a single aspect can change the situation on the market.
Of course, some other elements can be extracted from the list above and regarded in more detail to show the possible influence on Ethereum's price. However, we'll rely on the aforementioned items in making the prediction for 2021, 2022, and even 2025 & 2030.
Ethereum price prediction 2021
The announced successful testing of the Ethereum 2.0 in the middle of autumn 2020 allowed to increase the coin's value. However, the token price growth from about 200$ to near $650 at the end of 2020 looked not so big as Bitcoin's price panic. While the BTC raised from about $8K at the beginning of 2020 to $40K per token in early 2021, ETH doesn't show an x5 growth during the previous year.
However, Ethereum's best performance was delayed to the beginning of February 2021. Thus, the ETH's price jumped to $1700+, which means even better performance compared to Bitcoin's results for the last 12 months. Being a more flexible coin with a wider range of trading opportunities, ETH is going to continue the growth during 2021.
Some experts expect reaching a $2000 price per coin as a good performance, while the most optimistic ones are ready to forecast $4000 per token and even more. Like in our prediction for Bitcoin 2021 price, the Login Casino's team expects reliable growth of cryptocurrencies during this year, while the exact numbers and raising pace are impossible aspects to state.
Ethereum price prediction 2022
Making a more long-lasting forecast for Ethereum's price is even a harder task. Thus, the variety and nature of the factors that can change the balance are huge. The especially influenced will be from the side of governmental structures that will react to the 2021 growth and facilitate the launch of digital currencies. As the regarded process isn't fast, the primary impact of suchlike steps will be seen in 2022.
In this case, the forecast for 2022 isn't so optimistic. Cryptocurrencies don't have enough power in the global trade, so launching a digital yuan, dollar, and euro can push back even BTC and ETH. So, before making long-lasting investments in Ethereum, one has to be incredibly attentive to the legislative environment at the end of 2021. It will significantly influence the digital assets sector.
Long-lasting forecast: Ethereum price prediction 2025
Just like the previous two passages, there is no need to talk about the particular number of the ETH's price in 2025. There are plenty of aspects that influence the price prediction for Ethereum, which makes such a forecast almost impossible to make accurately today.
Nevertheless, financial experts like to use diverse forecasting techniques and models. Among the most popular ones is taking the price chart for some period and expanding it for the needed time. However, the issue arises: what time frame to take for scaling? Unfortunately, it's impossible to answer such a question, which allows talking about the ETH cost in 2025 in a classic range from $3500 to $70 000 per coin.
How accurate Ethereum price prediction 2030 can be?
Considering the future technological development pace and even artificial intelligence for forecasting needs, almost a ten-year price prediction for Ethereum is impossible. Humanity doubles the knowledge base every year, and this tempo is increasing. It won't be surprising if people talk about blockchain as a rarity in 2030, while the self-improving scheme can transform Ethereum into a dominant programming platform in nine years. Interestingly, both predictions might come true, so one has just to follow the technological and crypto development step-by-step.