Best cryptocurrency exchange to invest in Ethereum - Coinbase
What to expect if I invest in Ethereum?
At its 2015 launch, it began trading below $1. By the fourth quarter of 2017, Ether was trading at $774, only to reach the $1,000 milestone by the first few weeks of 2018. It reached its all-time high of $4,815 by November 2021. According to price prediction n 2025 Ethereum can potentially reach $4,569
As one of the industry's most viable cryptocurrencies, Ethereum enjoys relatively higher investor confidence. Its high market capitalization, network utility, and low energy-consuming proof of stake consensus mechanism place this cryptocurrency ahead of others.
Given the industry's unpredictable terrain, it remains unclear whether investing $100, $1,000 or more in Ethereum is a good idea. What exactly is the likely implication of investing in Ethereum? How much can I make if I invest $100 in Ethereum today? To answer these questions, TU experts will utilize key Ethereum price predictions and analysis metrics.
Start Investing in ETH Right Now With ByBit!Powered by the decentralized and highly secured Ethereum blockchain network, Ethereum or Ether (ETH) is a digital currency issued as a medium of computational services and transaction fee payment. Whether it is building a DeFi-enabling application, executing smart contracts, minting or trading NFTs on the blockchain, ETH is used as the network's native currency.
Like all volatile assets and as its historical price analysis suggests, Ethereum market price has witnessed a roller coaster of high growth rate. At its 2015 launch, it began trading below $1. It maintained this low price tag for the remainder of 2015, rising to $10 by the 3rd quarter of 2016. By the fourth quarter of 2017, Ether was trading at $774, only to reach the $1,000 milestone by the first few weeks of 2018. It reached its all-time high of $4,815 by November 2021. The ETH price remained consistently low in the first half of 2022 before soaring to $4,800 in January 2023, the market is now in the correction/consolidation phase suggesting a potential long-term price increase.
While there is no straightforward answer to the question of how much you get in the next two years if you invest $1,000 in Ethereum today, it is crucial to understand factors affecting Ethereum’s price. These factors include DApps, staking, demand and supply, crypto cycle, and extraneous factors.
Demand and Supply: Price value will rise if Ethereum’s demand outweighs supply. If supply outweighs demand, price value will drop. This explains why stable cryptocurrencies have a limited supply.
DApps: Decentralized Applications (DApps) are smart contract-programmed Apps with extensive cross-industry capabilities. They are the main drivers of the nascent DeFi, NFT and GameFi revolution. According to multiple reports, there are over 3,000 DApps powered by the Ethereum blockchain. The more Ethereum-based DApps, the higher the demand for ETH and the higher its value.
Staking: This is the crypto equivalent of interest-yielding savings accounts. Passive income can be earned by staking idle ETH on the Ethereum blockchain for transaction verification and validation. The higher the staked Ethereum, the lower the circulating supply and the higher the price value.
Crypto cycle: Every cryptocurrency, including Ethereum, passes through four cycles – accumulation, markup, distribution and markdown cycle. These cycles affect Ethereum’s price.
Extraneous factors: Ethereum operates in a broad crypto spectrum consisting of competing cryptocurrencies, market regulations, exchange platforms, wallets and other extraneous factors. Extraneous factors are known to affect Ether’s price. For instance, Ethereum price will drop significantly if the regulatory authorities pass investors' confidence-eroding crypto regulations.
Ethereum’s complex ecosystem was designed against the backdrop of real-world applicability and use cases. This will undoubtedly spur demand and price increases in the foreseeable future. Here is why investing in Ethereum is a good idea.
The existing Ethereum ecosystem is fraught with rough edges, including low transaction speed and high gas fees. Ethereum 2.0 is conceived to trim these rough edges for improved security, scalability and adoption. Ether’s demand will increase as the advanced Ethereum 2.0 is birthed.
While Ether fell significantly at the tail end of 2022, the recent price surge resulting from the recently released Uniswap V3 smart contract suggests that the market is at the price correction stage. Investing in Ethereum at this point is a good idea.
Most NFT and Metaverse supporting infrastructures are powered by the Ethereum ecosystem. Hence, there is a strong correlation between NFT and Metaverse's popularity and the ETH price increase.
Due to its volatility, it is counterintuitive to invest in one cryptocurrency. Diversifying your crypto portfolio with Ethereum can hedge against volatility, occasioning portfolio price loss and improve earnings.
The incoming Ethereum 2.0 and its numerous advantages, including improved scalability and security, are expected to ignite demand. Think Ethereum if your investment strategy involves long-term delayed gratification.
Ethereum is known for its high transaction fees, scalability issues, and lack of sustainability.
“Ethereum killers” are now emerging to address the weaknesses of the Ethereum blockchain. Cryptocurrencies like Cardano, EOS, Solana, BNB, and Polkadot are gaining in popularity in the market.
The inherent proof-of-work mechanism allows a limited number of transactions per second. This slow transaction speed, in turn, increases gas fees on the platform, which are important for powering the network. The “Ethereum Killers” aim to address this by operating on a proof-of-stake consensus mechanism.
The “Ethereum Killers” also aim to address Ethereum’s lack of sustainability, which is caused by high energy consumption. Many of them are looking to achieve carbon neutrality, which can in turn, counter height transaction fee challenges.
The Ethereum blockchain has faced a few security vulnerabilities for the execution of smart contracts. For example, in 2016, Ehtereum developers launched the DAO, a digital decentralized autonomous organization.
Soon after the launch, users exploited a weakness in the DAO code, causing the DAO to lose $70 million in ETH. Since then, Ethereum has improved the security of its smart contract code.
However, because cryptocurrencies are digital, they can be prone to hacks. So, it’s important to invest in ETH— or any other cryptocurrency—at your own risk.
Like many other cryptocurrencies, ETH is an extremely volatile instrument. This means that the price of ETH could rise and fall sharply in a short period of time. 2021 displayed a perfect example of ETH’s volatility and high sensitivity to market conditions.
Between May 12 and May 24, ETH lost nearly 50% of its value. While it has somewhat recovered since then, it can be a risky investment and cause many investors to lose confidence in Ethereum.
While Ethereum shows great promise as an investment, there’s no guarantee that it will succeed long-term.
Therefore, if an investor doesn’t have a high tolerance for risk and can’t afford to lose, it’s best to avoid it. This is why it’s so important to do your research and know what you’re getting into before you invest in ETH.
Cryptocurrencies are volatile and speculative assets. What to invest depends on several factors, including the investor's risk appetite. TU experts recommend considering your financial capabilities as the major determining factor for crypto investment size. Investing above 10% of long-term capital in a single cryptocurrency is not recommended.
While it is easy to base an investment decision on market waves or retrospective calculations, crypto investment must be made against the background of financial capabilities. It would be reasonable to base the investment amount on a defined period. Depending on financial capabilities, you can set $20, $100, or $1,000 monthly for Ethereum investment.
Contrary to what your exchange platform might recommend, TU experts strongly recommend investing what you can afford to lose on any cryptocurrency, Ethereum inclusive.
How long to hold Ethereum depends on the prevailing market conditions and cycles. As the crypto market's historical price analysis suggests, crypto cycles, including bearish and sideways, usually last between two and three years. If you intend to buy in a bear market, it is best to exercise restraints and watch the market rally to reenter the bearish cycle before buying. Generally, buying is best when the market is euphoric, and investors' confidence is over the roof.
It is important to reinstate that cryptocurrencies, including Ethereum, are highly speculative assets. While TU experts have compiled research-backed Ethereum long-term price predictions as a tool for an informed investment decision, price predictions may turn out inaccurate.
Important! This forecast is for informational purposes only and does not constitute investment advice.
| Month | Minimum Price | Average Price | Maximum Price |
|---|---|---|---|
| May 2024 | $2971.72 | $3301.91 | $3632.1 |
| June 2024 | $2992.52 | $3325.02 | $3657.52 |
| July 2024 | $3013.47 | $3348.3 | $3683.13 |
| August 2024 | $3034.57 | $3371.74 | $3708.91 |
| September 2024 | $3055.81 | $3395.34 | $3734.87 |
| October 2024 | $3077.2 | $3419.11 | $3761.02 |
| November 2024 | $3098.74 | $3443.04 | $3787.34 |
| December 2024 | $3120.43 | $3467.14 | $3813.85 |
| Year | Price in the middle of the year | Price at the end of the year |
|---|---|---|
| 2024 | $3325.02 | $3467.14 |
| 2025 | $3615.33 | $3769.85 |
| 2026 | $3930.99 | $4099.01 |
| 2027 | $4274.2 | $4456.89 |
| 2028 | $4647.4 | $4846.04 |
| 2029 | $5053.17 | $5269.15 |
| 2030 | $5494.35 | $5729.19 |
| 2031 | $5974.07 | $6229.41 |
| 2032 | $6495.67 | $6773.31 |
| 2033 | $7062.82 | $7364.7 |
| 2034 | $7679.47 | $8007.7 |
| 2035 | $8349.96 | $8706.85 |
The decision to invest in Ethereum now depends on the preferred investment strategy. If you are predisposed to investing short term, it is best to exercise restraints until the market reenters the bearish cycle before investing.
However, if you are thinking long-term, you can invest in Ethereum now. Several factors, including the incoming Ethereum 2.0, make a long-term investment strategy best suited for this highly volatile crypto asset.
Should I Buy Ethereum (ETH)? Top Pros and ConsThe Ethereum market is in the consolidation/correction cycle. If you invest 100 dollars in Ethereum, the corresponding value of your ETH after purchase will vary based on the price change of Ethereum. Investing for the long-term is a good strategy if you intend to stay ahead of the high volatility price of Ethereum.
Depending on your capital, Ethereum investment can make you a millionaire. It is, however, counterintuitive to see crypto investment as a money-making venture devoid of risks. It is best to invest what you can afford to lose./p>
Safe for its volatility and largely unpredictable terrain, Ethereum is a good investment in 2023.
ETH has an excellent future prospect.
Ethereum is a decentralized blockchain platform and cryptocurrency that was proposed by Vitalik Buterin in late 2013 and development began in early 2014. It was designed as a versatile platform for creating decentralized applications (DApps) and smart contracts.
Cryptocurrency is a type of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks, typically based on blockchain technology.
Volatility refers to the degree of variation or fluctuation in the price or value of a financial asset, such as stocks, bonds, or cryptocurrencies, over a period of time. Higher volatility indicates that an asset's price is experiencing more significant and rapid price swings, while lower volatility suggests relatively stable and gradual price movements.
An investor is an individual, who invests money in an asset with the expectation that its value would appreciate in the future. The asset can be anything, including a bond, debenture, mutual fund, equity, gold, silver, exchange-traded funds (ETFs), and real-estate property.
A broker is a legal entity or individual that performs as an intermediary when making trades in the financial markets. Private investors cannot trade without a broker, since only brokers can execute trades on the exchanges.
Glory is a professional writer for the Traders Union website with over 5 years of experience in creating content in the areas of NFT, Crypto, Metaverse, Blockchain, or Web3 in general. Over the last couple of years, Glory has also traded on different cryptocurrency and NFT platforms including Binance, Coinbase, Opensea, and others.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
