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Ethereum blockchain project and ETH explained
Ethereum is a decentralized open-source computing platform that supports the development of smart contracts and decentralized applications. It came into being in 2013 as a brainchild of Russian-Canadian Vitalik Buterin and eight other co-founders.
The project leverages blockchain and cryptocurrency technology to decentralize products and services in various sectors. Anyone can use its blockchain to create a secured digital technology. Conversely, it is developers’ preferred platform for coming up with decentralized applications used to perform tasks in different sectors.
The Ethereum blockchain is designed to be scalable, programmable, and secure. In addition, it is decentralized without any centralized authority or intermediary governing its operations. Instead, the network leverages the proof-of-work protocol whereby network participants run software that attempts to prove an encrypted number is valid.
There are plans to make a complete switch to a proof-of-stake consensus mechanism whereby people will be allowed to stake their ETH holdings. The transition is expected to enable users to use their ETH tokens to validate transactions on the Ethereum network. People will also be able to mint ETH tokens based on their ETH holdings.
ETH whitepaper and tokenomics
Ethereum ETH is the native token that powers the Ethereum network. All transaction fees on the network are settled on ETH. In addition, network participants are rewarded in ether tokens for participating in securing the network. Any correct answer in the minting process is also rewarded with Ether.
Unlike Bitcoin, there is no cap on the number of Ethereum tokens that will enter circulation. While the amount of ETH that can be created is unlimited, the time it takes to come up with new ETH token limits the number of ETH minted at any given time.
Currently, there are about 120.9 million ETH tokens in circulation with a market cap of about $209.15 billion. The total value of ETH tokens locked in decentralized finance platforms currently stands at $67 billion.
ETH coin price analysis
ETHUSD is down by more than 60% from its all-time highs of about $4,850. It is also down by more than 50% year to date amid an ongoing correction from record highs. The deep pullback has coincided with the overall cryptocurrency market turning bearish and crashing from all-time highs.
A recent drop below the $2,000 level has left Ether vulnerable to further losses going to the strength of the downward pressure. The Relative Strength Index (RSI) is pointing lower, having plunged below the 50 level, affirming the bearish momentum. In addition, the coin is trading below its 200-day moving average, signaling short sellers are in control.
A plunge followed by a daily close below the $1,700 handle could leave ETHUSD susceptible to plunging to 15-month lows near the $1,300 barrier, which appears to be the next support as part of the ongoing move lower.
Likewise, Ethereum finding support above the $1,700 raises the prospect of a bounce back. However, for the coin to turn bullish, it needs to bounce back and find support above the $2,000 psychological level.
ETH price prediction for a year
Ethereum’s short-term outlook looks increasingly bearish on the broader cryptocurrency sector crashing from record highs. With the coin trading below the $2,000 level affirms the strength of the sell-off wave. However, expectations are high that the coin could bounce back before year-end.
Analysts believe the coin could bounce back and find support above the $2,000 level, with major indicators signaling an oversold condition. Analysts at Digitalcoinprice.com expect the coin to average $2,327 for the year and rally to highs of $2,479 before year-end.
Analysts at Walletinvestor.com, on the other hand, are extremely bullish, expecting Ethereum to rally to highs of $3,929 over the next year representing a 54% gain from current levels.
ETH price prediction for 2025
Once the cryptocurrency crash dust settles, expectations are high that Ethereum will be one of the coins to explode following the deep pullback.
Consequently, the coin is expected to power through the $3,000 level and average $3,425 by 2025. It is also expected to reach highs of $3,800 which would still be a discount from its all-time highs
ETH price prediction for 2030
ETH’s long-term prospects are bullish, going by the impact its blockchain is having in various sectors. Ethereum blockchain has emerged as a preferred platform for developing smart contracts and decentralized applications.
It is also becoming a big player in decentralized finance as the need to move away from centralized exchanges heats up. Its growing dominance in hosting platforms and projects for developing and hosting non-fungible tokens is another factor that affirms its growing utility.
Conversely, demand for ETH is expected to increase as mainstream adoption increases. Ethereum is poised to explode and reach record highs of $8,317 by 2030, according to estimates on Digitalcoinprice.com. Analysts at Walletinvestor.com, on the other hand, expect Ethereum to power through the $10,000 barrier.