Crypto assets like Bitcoin and Ethereum were all the rage in 2020. With governments worldwide resorting to quantitative easing and other inflationary practices as a final resort in the battle against COVID, the global economies weakened considerably. This led to a massive rally for crypto assets, with institutional support like never before, making 2020 an amazing year.
Ethereum, in particular, had a relatively slow first half in 2020. However, since the advent of the pandemic, to February 2021, Ethereum has seen over 1800% increase in price. What will the rest of 2021 look like for Ethereum? Are the industry experts suggesting $5000 in their Ethereum price predictions? Let’s find out!
What is Ethereum?
Inspired by Satoshi Nakamoto’s whitepaper on Bitcoin, Vitalik Buterin wanted to create a crypto asset better than Bitcoin. He wanted to create something which could be much more than just a payment technology – something which can run smart contracts and enable dApps (Decentralized Applications). Joining hands with Anthony Di Iorio, Charles Hoskinson, Mihai Alisie, Amir Chetrit, Joseph Lubin, Gavin Wood, and Jeffrey Wilke, he came up with Ethereum.
Ethereum has developed into something more than just a crypto asset since its inception in 2015. With its ability to launch new crypto tokens, called the ERC-20 tokens, Ethereum has revolutionized the way crowdfunding works in the crypto space. Utility tokens like WRX tokens came into existence thanks to the native support offered by Ethereum.
Ethereum started its journey in the crypto world with prices as low as $1 per coin. However, as time progressed amidst ICOs and Bitcoin’s initial boom, Ethereum’s price increased to as high as $1380 during January 2018. However, with the failure of many ICOs, and regulatory concerns, and the infamous “Bitcoin Bubble crashing” in early 2018, the prices fell. However, the long-term price potential, projected growth, and use cases for this exciting project remained unscathed.
Since then, however, things have been extremely positive for Ethereum. Though the utility of Ethereum for ERC-20 tokens has somewhat diminished, it has been compensated with the boom of DeFi. With DeFi being termed as the next big thing since Bitcoin, the prospects of Ethereum seems to be infinitely high.
Over the course of 2020-21, Ethereum has rallied from a price of $103 to being traded at an all-time high of $1999 in February of 2021.
Experts’ Ethereum Price Prediction
With increased institutional support and crypto assets moving towards global adoption, experts are of the opinion that Ethereum is set to have a stronger 2021. Experts like Simon Dedic and James Todaro are of the opinion that it may reach up to $9000 in the long term, suggesting a potential $1 trillion market cap. However, what is the consensus on Ethereum price prediction in 2021? Granted, the fundamentals are strong, but what does the technical analysis suggest? Let’s find out.
Tradingview.com’s technical analysis on Ethereum suggests a strong buy based just on oscillators and a definite buy taking into account all the factors over the month of March. This is usually an indicator of a price increase.
Short-term analysis suggests that the $2300 mark might be on the cards by the end of February, thanks to oversold RSI, which indicates a lot of upsides, but the experts remain 50-50 on this prediction.
Longforecast.com came up with a potential $4323 price prediction on Ethereum, which is more optimistic than predictions from other experts.
Now that Ethereum’s broken all-time records, crypto expert Crispus Nyaga is predicting a potential valuation of $2500 to be on the cards very soon. It is to be noted that Crispus was one of the firsts to predict the recent rally to $2000. With another stimulus package expected in the United States, a higher price increase can not be written off.
However, technical analysis tends to be accurate in the short-term, making any prediction further than the next couple of months susceptible to inaccuracy.
Will ETH reach $5000 in 2021? Probably. Next to no one were expecting a price of $2000 in early 2020, and it is too soon to tell. But if this uptrend continues, then the $5000 barrier may easily be crushed.
In all accounts, Ethereum is set to be an extremely lucrative investment in 2021. If you’re looking to take advantage of Ethereum’s potential, try buying Ethereum from WazirX, India’s most trusted crypto-asset exchange.
The information provided does not constitute, in any way, a solicitation or inducement to buy or sell crypto assets. The analysis reflects the views of different external and internal analysts at any given time and is subject to change at any time. Moreover, they can not constitute a commitment or guarantee on the part of WazirX. Crypto assets are volatile and come with a fair share of risk. Please understand and be comfortable with these risks before investing in crypto assets. A consultation from an expert is strongly recommended.
The price prediction is based on data collected from various sources. This is not an investment advice. Crypto investing is high risk activity and User should do their own research including obtaining appropriate professional advice before taking any investment decision.