Ethereum Price Prediction — Will ETH Hit $5K Soon?
- Bullish ETH price prediction is $4385.
- ETH price will also reach $5k soon.
- ETH bearish market price prediction for 2021 is $1690.
In Ethereum (ETH) price prediction 2021, we use statistics, price patterns, RSI, and much other information about ETH to analyze the future movement of the cryptocurrency.
Ethereum is considered one of the impressive and ever-growing cryptos in the industry. Moreover, the price of ETH increased during the 2021 bull run. Do you think ETH is potential crypto? Will the ETH price hit $5K soon? Let us find out in this price prediction article. Before this, let us look into ‘What is Ethereum’.
What is Ethereum (ETH) ?
Ethereum is the second biggest cryptocurrency in the world which is an attraction for millions of investors. It is a building block of a large community with blockchain technology which is the superpower for the entire crypto assets. Besides, ETH is an open space network providing access to all digital users through data-friendly services.
Moreover, Etherum is a technology that helps anyone to transact cryptocurrencies as it is a peer-to-peer network. Notably, ETH is recognized as the world’s programmable blockchain serving unique applications for users. In addition, Ethereum is a platform where users can enjoy payment services without any third parties like banks or financial providers. But then the users are guided to have a wallet to be a part of the ETH network.
Additionally, Ethereum is popping to be the prime in developing innovative features and products for best user experiences. Also, ETH is not only for payments, it is a wide marketplace for financial institutes, gaming services, and digital applications. Along with its creative services, it provides super security to the data being stored and retrieved.
ETH Current Market Status
According to Coingecko, the price of ETH is $3110.23 with a 24-hour trading volume of $22,553,472,744 at the time of writing. However, ETH has increased to 2.5% in the last 24 hours.
Moreover, ETH has a circulating supply of 117,643,601 ETH. Currently, ETH trades in cryptocurrency exchanges such as Binance, Mandala Exchange, Huobi Global, OKEx, and FTX.
Factors Influencing ETH Price
When it comes to the price factor of Ethereum (ETH), each and every day gives rise to a new prominent reason for its spiking up. True to the fact that ETH is constantly in evolution with respect to profuse developments constantly. Amidst this, there are many factors responsible for a direct influence upon the price of ETH.
-The Mining
ETH is one of the few cryptos that could be mined evidently. In spite of this, the mining profitability of ETH is one important factor. Upon mining of ETH, the miners have the potential to hold up their mined ETH till the prices rise up and sell them at profits.
Moreover, profuse mining at the same time leads to lesser mining profitability. Therefore, over mining at the same time also affects the price of ETH profusely.
-The Coin Burns
It’s a well-known fact that the ETH is a deflationary token. And so, the ETH platform usually conducts their coin burns periodically. This is done in order to create an insufficiency in the supply of ETH , which directly leads to rise in its price. Most crypto enthusiasts know that once ETH starts its burn, the price of ETH is said to reflect rising up the next few days.
-The Blockchain Entities
This is the foremost and one of the major reasons for the standard growth of ETH. The ETH is backed up by its prolific blockchain platform, which is open to almost all the entities of a blockchain. These entities are the non-fungible token (NFT), the Decentralized Finance (DeFi), Decentralized Applications (DApps), blockchain-gamings and so on. In spite of all this, as the market values of the NFT platforms, DeFi platforms, DApps market, blockchain-gaming market all rise up, this will directly impact the price of the ETH, making it spike up in fulsome.
-Blockchain Innovations and Developments
This factor is obviously necessary for each and every blockchain-based crypto in the industry. Coming out and releasing a profuse blockchain platform alone wouldn’t make the platform stable over time. Constant research, development, and innovations with respect to ease of use, efficiency, lower prices, and higher transaction speeds are the key elements towards the future of a blockchain platform.
In such terms, the ETH platform’s latest London hard fork, aka EIP-1559 has energized the ETH blockchain platform evidently, such that the results could be seen in its recent price surges towards the $3,500 price range.
Moreover, the much-awaited ETH 2.0 which is yet to be launched, is expected to drive the ETH to the foremost peaks it has ever seen so far!
Successful Completion of London Hard Fork
Ethereum’s developers issued an update to address the issues. The cryptocurrency market has benefited from the London upgrade. Investors appear pleased since it increased network cost transparency. Experts say the newest Ethereum development upgrades may end Bitcoin’s supremacy.
The Ethereum London Hard Fork update proposes five changes. One is EIP-1559. It aims to speed up and incentivize Ether mining. Unlike Bitcoin, mining Ether coins have no limit, making it an inflationary cryptocurrency.
The London update has allowed the Ethereum network to process many more transactions per second. It will assist with scalability and reduce transaction costs, a major gripe of small investors and frequent traders.
The EIP-1559 update also reduces the amount of Ether currency in circulation. Assuming demand stays steady, this may result in higher pricing.
A hard fork occurs when the majority of a cryptocurrency’s developer, miner, and investor community decides to alter the underlying technology’s basic rules.
Prices will increase as demand rises. It’s believed by many that the new update has given Ethereum the firepower to rival Bitcoin.
The existing Ethereum mainnet will “merge” with the proof-of-stake Beacon Chain shortly, officially ending Ethereum’s proof-of-work. This must happen after the network’s shard chain deployment, but not this year. Simultaneously, ETH 2.0 researchers are working to speed up the process.
The Ethereum London hard fork just landed, and it’s giving ETH supporters new hope for 2.0. Co-founder Vitalik praised the upgrade and termed it as a success.
Buterin said that while speaking to Bloomberg:
“EIP-1559 is definitely the most important part of London.”
This has given him greater confidence for the impending ETH 2.0 chain merging, he added.
After the merge, the new mainnet may operate smart contacts on PoS. This will eliminate mining activities. It may also save 99 percent of the network’s electricity consumption. Of course, a less power-hungry, less expensive Ethereum delights almost everyone in the blockchain world.
Upcoming Shanghai Hard Fork
The crypto business is quickly developing, and significant improvements are imminent. This year, Ethereum’s development team has been hard at work on some interesting new features. Not all upgrades are developed equal.
For example, the London and Berlin forks updated Ethereum by lowering gas costs and increasing data availability for smart contracts. These changes will not be covered in the Shanghai Ethereum Hard Fork!
The event got the name Devcon2 after the city it is taking place in.
However, like Ethereum Protocol Support experts like Tim Beiko, others believe the Shanghai fork will be a regular hard fork with more usual EIP functionalities.
Tim’s tweet read:
To be clear: if Shanghai is in October, it won't be the merge, but a "regular" hard fork with other features. The idea behind Mikhail's issue is to instead focus on the Merge, but this will obviously delay Shanghai.
— Tim Beiko | timbeiko.eth (@TimBeiko) March 18, 2021
The Shanghai Ethereum Hard Fork will merge Ethereum with Ethereum 2.0, creating a new blockchain with quicker transaction times and cheaper costs that can be utilized globally.
EIP-3074 (Ethereum Improvement Proposal) seeks to replace “gas” (a unit for quantifying computing steps on any given network like Ethereum) with an algorithmic gas price known as ETHash utilizing the Pigouvian Taxation model.
It also provides cheap pricing during off-hours, preventing congestion from too many miners attempting to mine blocks at once.
The Shanghai Ethereum Hard Fork will be unlike previous hard forks. For beginners, the Ethereum network will include ETH and a new token called ETH2.
Thus, combining Ethereum with Ethereum 2.0 (creating a new blockchain with quicker transaction times and cheaper costs) and EIPs (Ethereum Improvement Proposals) will offer more benefits. If you’ve been following current cryptocurrency news, you’ll know that continuous changes are being made to enhance usability for everyone.
Pros and Cons of ETH
Pros of ETH
- Ethereum is the best pair for DeFi as it provides a complete financial freedom to the end-users.
- Users can gain their private ownership without any over rules from intermediaries.
- NFTs and Ethereum are the perfect combo which provides digitally unique authorization.
- NFTs avoid the replica for all Etherum based assets and properties.
- DAOs smart contracts help ETH users to send and receive funds around the globe without any central authority.
- Ethereum’s interconnected Dapps empowers the network to create new business models and financial services.
Cons of ETH
- The unstableness of the Ethereum blockchain which often undergoes many changes disturbing the structure of the network.
- Ethereum serves as a multifunctionality feature which increases the possibilities of breakdowns and hackings of the network.
- ETH users are migrated to more stable networks due to its very high transaction fees.
- Ethereum network charges the users even for the failed transactions due to insufficient gas fees.
Analyst Views on ETH Price
Ethereum is currently below $3500. Ethereum’s exchange rate showed signs of recovery, but it has now fallen to slightly over $3,000 as per CoinMarketCap.
Concerns for Ethereum include declining support and the fact it is not able to breach the resistance. The crypto market has slowed down, with major currencies losing market share.
However, as observed recently in the crypto market, the price of Bitcoin has increased the price of other currencies. So, if Bitcoin (below $45,000) recovers, Ethereum (around $3000) may follow and reach the $4000 mark soon.
The US Securities and Exchange Commission chairman recently urged crypto CEOs to follow the rules if they want to survive. Despite this warning, Bitcoin and Ethereum have witnessed price increases. Several recent events have contributed to the current price increase.
@TheCryptoLark tweeted about ETH reaching $4000. Famous crypto user Lark Davis wrote:
$4,000 #ethereum is knocking!
— Lark Davis (@TheCryptoLark) September 3, 2021
Similar positive words were also tweeted by Remi_Tetot, who is the co-founder of Real Vision TV. He tweeted about ETH crossing $15k in the next six months. Remi tweeted:
#Ethereum will cross $15k in the next 6 months…
— Remi Tetot (@Remi_Tetot) August 25, 2021
The network effect in action! pic.twitter.com/zdHBajYmuM
One of the reasons for the rise in Ethereum is the impending update. Ethereum is switching from an energy-intensive PoW (proof-of-work) model to an energy-efficient PoS. This will minimize the environmental effect and attract more money to invest in Ethereum.
Also, Demand for DeFi and NFTs is one of the major drivers of Ethereum rise. Ethereum’s role in DeFi and NFTs is growing, and with the forthcoming upgrade, Ethereum’s price will increase even more. Moreover, Facebook CEO David Marcus told Bloomberg this month that the social network may allow NFTs on its digital wallet, Novi.
Ethereum owns 19.51 percent of the cryptocurrency market. Prices have increased to nearly $4000 since 2013.
With Bitcoin still struggling to reach $50,000, Ethereum has the potential to expand in the market. Ethereum is experiencing its best day since May. Investors may consider investing in Ethereum and make the price reach $4000 sooner than we can anticipate.
Ethereum (ETH) Price Prediction 2021
Ethereum holds the 2nd position on CoinGecko right now. ETH price prediction 2021 explained below with a daily time frame.
The falling wedge pattern is a continuation pattern formed when the price bounces between two converging and descending trendlines. This is a bullish chart formation, but it can also indicate reversal or continuation patterns depending on where it appears in the trend.
Currently, ETH is at $3081.32. After this, ETH would continue to follow the pattern where the price chart would show uptrend. Moreover, the price of ETH will breakout at $3690 and might reach the resistance level to $4045. If the trend reverses, then the price of ETH may fall to $2880.
The support and resistance level of ETH shown in the below chart.
From the above chart, it observed that the following are the resistance and support levels of ETH.
- Resistance Level 1 – $3445
- Resistance Level 2 – $4025
- Resistance Level 3 – $4385
- Support Level 1 – $2920
- Support Level 2 – $2440
- Support Level 3 – $1690
The chart depicts the bullish performance of ETH over the previous month. However, this trend will break out and reach a resistance level at $4385. On the contrary, if the trend reversed then ETH might fall to $1690 presenting a bearish signal.
Ethereum Price Prediction 2021 — RVOL, MA, and RSI
The Relative Volume (RVOL) of ETH is shown in the below chart. RVOL is an indicator that tells traders how the current trading volume has changed over a period of time compared to the previous volume. Currently, ETH’s RVOL is below the cutoff line, indicating weaker participants in the current trend.
More so, the ETH’s Moving Average (MA) shown in the chart above. Currently, ETH is in a bearish state. Notably, the ETH price is below 200 MA (long-term), so it is completely in a bearish state. Therefore, there is a possibility of a reversal trend at any time.
Meanwhile, the relative strength index (RSI) of the ETH is at level 40.53. This means that ETH is in a nearly oversold state. However, a major price reversal may occur in the upcoming days. So, traders need to trade carefully.
Ethereum Price Prediction 2021 — ADX, RVI
Let us now look at Ethereum’s Average Directional Index (ADX). In particular, ADX helps traders find the strength of a trend rather than its direction. It can also used to determine if the market is changing or if a new trend is starting. Moreover, ADX is linked to the Directional Movement Index (DMI).
The above chart represents the ADX of Ethereum. Currently, Ethereum lies in the range at 20.63, so it indicates a weak trend.
From the above chart, it observed the Relative Volatility Index (RVI) of ETH. RVI measures the constant deviation of price changes over a period of time rather than absolute price changes. The RVI is below the 50 level, indicating that the direction of volatility is down. In fact, ETH’s RSI is at the 40.53 level thus confirming a potential sell signal.
Comparison of ETH with BTC, ADA
The below chart shows the price comparison between Ethereum, Bitcoin, and Cardano.
From the above chart, we can identify the trend of the BTC, ETH and ADA is moving at the same level as the trend. This indicates that when the price of BTC increases or decreases, the price of ETH and ADA also increases or decreases respectively.
Conclusion
With continuous improvements in the Ethereum network, we can say that 2021 is a good year for Ethereum. For this reason, the bullish price prediction of Ethereum in 2021 is $4045. On the other hand, the bearish Ethereum price prediction for 2021 is $1690.
Furthermore, with the advancements and upgrades on the ETH ecosystem, the performance of ETH would rise reaching $4385 very soon. But, it might also reach $5K if the investors believe that ETH is a good investment in 2021.
FAQ
Ethereum is a distributed public blockchain network that focuses on running the programming code of any decentralized application (DApp).
ETH has listed on many crypto exchanges which include Binance, Mandala Exchange, Huobi Global, OKEx, and FTX.
With the ongoing developments and upgrades within the ETH platform, it has a high possibility of reaching its ATH soon.
On May 12, 2021, ETH has reached its new all-time high (ATH) of $4,362.35
Ethereum blockchain is secured through the Ethash proof-of-work algorithm, belonging to the Keccack family of hash functions.
ETH 2.0 refers to the set of interconnected upgrades that will make Ethereu more scalable, more secure, and more sustainable.
Ethereum (ETH) seems to be one of the top-gaining cryptocurrencies this year. According to the recorded achievements of ETH in the past few months, ETH is considered a good investment in 2021.
Some of the best Ethereum Wallets are Trezor One, Metamask, Ledger Nano S, Exodus, Mist.
Ethereum (ETH) is one of the active cryptocurrencies that continue to maintain its Bullish state. Eventually, if this bullish trend continues then Ethereum (ETH) will hit $5K soon.
The main advantage of the Ethereum blockchain is high volatility, liquidity, and lower danger of inflation.
Disclaimer: The opinion expressed in this chart solely author’s. It does not interpreted as investment advice. TheNewsCrypto team encourages all to do their own research before investing.
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Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
