Will Ethereum price go back up?
Ethereum in recent days is still struggling to get back up, even though Ethereum's ranking or in platforms with the ETH symbol still ranks second on the Coinmarketcap rating site. However, after hitting a high of $ 488 in early September, ETH is currently worth $ 347.35 on the Bitfinnex exchange.
Measuring volatility with the Bollinger band, currently forming a Bollinger band squeeze, which in low volatility, prices tend to move sideways.
Will Ethereum price go back up? However, before analyzing more deeply about the prospects for Ethereum, we will flashback about what Ethreum is.
What is Ethereum cryptocurrency?
Ethereum cryptocurrency is a digital currency that was first introduced by Vitalik Buterin. Ethereum is a blockchain project that offers better features than the Bitcoin blockchain because it is considered more sophisticated which can accommodate multiple Defi tokens.
The popularity of Ethereum has brought it to second only to Bitcoin and is the leading technology in its development
Apart from functioning as a decentralized digital currency, Ethereum can also be programmed for financial services, applications, games, etc. Which can be built on the platform.
Ethereum provides developers with a facility that allows them to build automated smart contracts to carry out tasks when certain conditions are met.
Ethereum has experienced theft of as much as $ 50 million ETH in its history in 2016. It is estimated that the theft was caused by exploitation in the DAO project.
For security reasons Ethereum then separated. The result is a new version being the original Ethereum with the ETH coin ticker, and another being Ethereum Classic with the ETC coin ticker.
Vitalik Buterin didn't actually but he wrote the Ethereum whitepaper. However, there another founders are to have participated in Ethereum development, they are Anthony Di Iorio, Charles Hoskinson, Mihai Alise, Amir Chetrit, Joseph Lubin, Gavin Wood, and Jeffrey Wilke.
What's the highest Ethereum price?
Ethereum's record high was in 2017 for a year it posted a gain of around 13,000% according to a CNBC report, this is a tremendous increase and it happened before the pandemic at a high of $ 1417.38 according to Coindesk records.
Meanwhile, based on the Tradingview chart by looking at the monthly time frame, the all-time highest price is $ 1425 on 01 January 2018, there is a price difference between Coindesk and Tradingview.
The increase in the value of Ethereum is due to the positive sentiment of market participants as several large companies such as Microsoft and JP. Morgan is looking for and building applications using the Ethereum Blockchain network.
The company involved in the development is called the Enterprise Ethereum Alliance. But besides that, many investors also choose Ethereum for profit, so this can increase the value of Ethererum. The Enterprise Ethereum Alliance helped develop the ERC-20 standard on the Ethereum blockchain to develop new tokens that operate on the Ethereum protocol.
The positive sentiment not only caused Ethereum to score an all-time high, but Bitcoin also scored an all-time high in 2017.
However, the record high only lasted for less than a month wherein February 2018 the price started to weaken and moved downward, until finally, it headed to a low of $ 83 in early December 2018.
Then will the price of Ethereum go up again? It turns out that there are still many who are optimistic that with one theory in financial trading, history will repeat itself.
Why is the Ethereum price going down?
Ethereum has indeed scored the highest price of all time, but it turns out that this condition did not last and the price declined again, several theories mention the reason for the decline in Ethereum's value.
One of the most famous is the Crypto Bubbles. This theory refers to technical analysis data that often occur in financial markets, if the price is considered too high, a bubble will burst.
It was at the time of the highest price that investors started to Selling Ethereum to capture the profit that already high. This action was then carried out by other investors so that demand decreased and the supply increased and caused the value of Ethereum to gradually to decline
Another theory states that the price of a currency can also depend on inflation and adoption.
A high inflation rate can make a currency worthless because inflation is not a measure of economic growth, but it is an increase in product prices which does not mean an increase in the amount of production.
Adoption is also the reason why currencies decline, this is closely related to an increase in the number of requests, the more that currency is adopted, the higher its value. And conversely the smaller the adoption the lower the value.
This theory is an assumption from experts who are experienced in the field of world financial investment, which was a factor in the downfall of Ethereum in 2018. While at this time 2020 the Ethereum price has also experienced a sharp decline in a short time.
A temporary reason that Ethereum's value has dropped is the massive dumping of digital currency into the market. If this analysis is correct then there may be trend reversals and the decline will only be temporary.
What drives the Ethereum price?
The price of Ethereum is driven by developer support, the higher the developer interest in building applications on the Ethereum blockchain, the higher the value will be. But news like the Crypto Kitties game that will leave Ethereum is negative news and if the investor response is bad it can trigger a price decline.
But positive news for Ethereum could increase investors' interest in investing and increase the value of ETH. AMBcrypto recently reported on the SKALE Network scaling project, which was developed to lighten traffic and lower transaction costs on the Ethereum blockchain.
Based on the report they will launch a Phase 2 Mainnet with a capacity of more than 1,000 decentralized elastic SKALE chains. Each with the throughput of the entire ETH Blockchain and sub-second block time.
It also states that this will allow the token holders to earn rewards by supporting a network security pool that costs USD 78 Million in Locked Total Value.
Such positive news can build investors' enthusiasm and can drive the Ethereum price towards positive sentiment.
Ethereum price prediction
ETH is currently trading at $ 347.05 in second place in the Coinmarketcap ranking, several forecasting sites illustrate the possible long-term price of Ethereum. For investors who are looking for answers to the question, Will Ethereum price will back up? this will be information that may help how you decide to invest in ETH.
At the moment Ethereum's market capitalization is $ 39,166,248,127 with a daily volume of $ 13,062,856,850, the fluctuation in ETH is quite high compared to tokens like Chainlink and Polkadot, short-term traders might be able to seize the opportunity.
But what about long-term investors? Of course, you will see long-term value opportunities whether ETH is still an asset that provides the best gain or vice versa. We take a look at some of the long-term Ethereum price predictions that I have summarized in this paper.
Wallet investor Ethereum price prediction
Wallet investors are a well-known site that predicts a wide variety of cryptocurrencies, they use a method called Smart Technical analysis with a sophisticated algorithm that is updated every 3 minutes. Based on the forecasting, investors' wallet for ETH price is expected to rise to the level of $ 412,800 in the next year 2021.
While forecasting for the next five years Wallet investor predicts ETH can reach $ 640,809, for example, if you invest $ 100 today, you will get a gain of around $ 184.65 in 2020 based on this forecast. It is estimated that the value of Ethereum in 2025 will increase by 84%.
But will this prediction be accurate? Because this uses technical data, however, it can be missed because fundamental news can affect the supply and demand of currencies.
Below is a short term Ethereum forecast by Wallet investor
Image source wallet investor
From the image of the short-term prediction above, it is predicted that prices will fall in the short term to reach a low of $ 330 in this October.
Long-term investors may refrain from buying at the current price and wait for the price to hit a low. However, short-term investors may take benefit of the opportunity to sell now and buy back later if prices hit the low.
Below is the long term Ethereum price forecast for 2021
The picture above is a technical chart forecast for ETH which is estimated to reach a value of $ 412,800 by the end of 2021 next year.
Gov Capital Ethereum price prediction
Gov Capital is also a crypto forecasting site as well as forex, stocks, and commodities. The forecasting method developed is a custom algorithm that takes in-depth technical data, but the variables used in forecasting are different from Wallet investors, Gov Capital takes data on volume changes, price changes, market cycles, similar coins.
Based on forecasting Gov capital for ETH could reach $ 471 after year.
Based on long-term forecasts, it is estimated that the bullish market will dominate the changes in Ethereum with a prediction of the best price in 2025 to reach $ 2710.
Below is the short-term Ethereum price forecast according to Gov Capital.
Image source Gov Capital
From the image above, it is predicted that price movements will form swing up and down waves as Elliott wave theory. It is estimated that on 18 October 2020 the Ethereum price will reach $ 378,289.
Short-term investors will usually take for chances by looking at price swings by paying attention to the support and resistance zones.
Meanwhile for long-term forecasting based Gov Capital’s analysis below
Image source Gov Capital
The prediction that can be read from the image above is that the price is in a bullish trend in the long term with the prediction that the price in 2022 can reach $ 471,444.
Long-term investors prefer to hold assets for years because they are considered to provide better returns with minimal risk.
Ethereum short-term price analysis 03 October 2020
ETHUSD is trading today with a low change in price, this is indicated by a lined candlestick shape and a squeezing Bollinger band line, indicating low volatility for the day.
From the open price to date it has increased by only plus 0.44%, so this can throw off the patience of short-term traders who play scalping.
The price is currently playing above the middle Bollinger band which is an indication of an uptrend. An aggressive trader may be able to seize a Buy opportunity at $ 347.66 by placing a stop loss below the middle BB line.
Chart by Tradingview
Meanwhile, based on the MACD indicator, the histogram is at the minus 0.28 level, which means that the market is sideways. Meanwhile, the signal line is below the MACD line, meaning that the current trend is up.
The RSI indicator acts as a multipurpose tool which currently shows the level of 50.82, this means that the trend will be bullish where the uptrend is more dominant.
In short-term ETH price analysis, trading signals have not been confirmed due to sideways conditions, although it is possible to capture the low movement on the M1 timeframe, the risk is too high for the short term.
However, some traders may try to take advantage of arbitrage of price differences on the same asset on different exchanges. from the gap of price, traders try to develop an arbitrage strategy. For example, currently, the price of ETH on the Bitstamp exchange is $ 346.44 and the exchange is $ 347.04, from the price difference traders try to arbitrate by buying and selling on different exchanges.
Chart by Tradingview.
Ethereum is a digital currency asset that is seen as a future asset that promises high returns. However, apart from all the predictions above, it only predicts what will likely happen to changes in the price of an asset. This is not investment advice and each investor will be held accountable for its decision
The prediction above is purely using a technical tool so it can be less relevant if there is an increase or decrease in the fundamental condition of Ethereum. For example, the launch of the scalability layer may be the reason for the change in ETH prices in the short term.