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Ethereum (ETH) Price Prediction 2022

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Ethereum (ETH) Price Prediction 2022
Curitiba, PR, Brazil - June 16, 2021: Ethereum coin on a circuit board with LEDs representing the high technology involved in the cryptocurrency network.

Capuski/Getty Images

When it comes to an Ethereum price prediction, some experts say the cryptocurrency could reach record high prices in 2022. However, a continuing downtrend has formed. An uncertain macroeconomic environment could continue to lower the price just as easily.

What is Ethereum?

Ethereum is a layer-1 block chain solution and the second most valuable cryptocurrency in the world by market capitalization. Ethereum’s decentralized ecosystem focuses on banking, gaming, and app building, earning it the nickname “the programmable blockchain of the world.” Ethereum is also the name of the native cryptocurrency on Ethereum block chain.

How does Ethereum work?

You wonder what Ethereum piece can do? As a native cryptocurrency of the Ethereum blockchain, it is used for transactions on approximately 3,000 decentralized applications built on the blockchain by the developer community. Validators also receive rewards in Ethereum in exchange for securing the network, storing data, and processing transactions.

Many holders choose to hold Ethereum tokens in the hope that as the network grows, the value of each Ethereum token will also increase. Ethereum holders can also stake their crypto with reputable exchanges such as Binance and Coinbase to earn interest on the asset.

Ethereum (ETH) Price Prediction 2022

Investors can look at the Ethereum price prediction from two angles: the case of the bull and the case of the bear. The most optimistic analysts predict that Ethereum could reach over $12,000 in 2022 if an upcoming update is successful, but a panel of cryptocurrency experts from Finder predicts a high of $1,000 to $3,999, $3,000 to $3,999 being the most popular prediction. According to bearish estimates from the Finder panel, Ethereum could fall between $400 and $799.

The Bull case for Ethereum

Adoption of the Ethereum blockchain has accelerated significantly in recent years. It is a leader in terms of number of developers and growth in transaction volume. Additionally, brand recognition has increased and the price of Ethereum tokens has appreciated significantly.

There are now about 600 crypto exchanges process billions of dollars in transaction volume every day. Separated from exchanges, neobanks such as Revolut and established fintech giants like PayPal have joined the cryptocurrency revolution to meet customer needs. Crypto has become more accessible in general, and for Ethereum – as one of the most important crypto assets – this is favorable.

Perhaps the most exciting development this year is “The Merge,” which is expected to be completed in the third or fourth quarter of 2022, with a tentative deadline of September 19. The Ethereum merger will move the network from proof-of-work mechanism to proof of stake, eliminating the need for mining. Staked Ethereum tokens will secure the network. This is a major milestone as part of the Ethereum 2.0 rollout, which aims to improve scalability and reduce transaction fees. As of August 9, institutional investors have set weekly inflow records for seven consecutive weeks in anticipation of the upgrade, CoinTelegraph reported.

Currently, 30 transactions are processed per second on the Ethereum blockchain. The merger could increase that by 10%, according to a Citigroup research report detailed in a CoinDesk post. A planned future upgrade dubbed the Surge is expected to boost transaction processing speed to 100,000 per second.

Last but not least, a key metric to consider is the crypto fear and greed index. The indicator shows that the market is currently in “neutral” territory. This means there is room for increased demand, which could support higher Ethereum prices.

The Bear case for Ethereum

The macroeconomic environment is one of the main concerns. Almost all asset classes declined in the first half of 2022, suggesting a risky market is underway. The fears of a “crypto winterpopped up as a result. Ethereum trading volume has been volatile in recent months, possibly due to fears of a contraction in overall consumer spending.

Ethereum founder himself, Vitalik Buterin, has also recently expressed concerns about the exuberance non-fungible token trading. Many NFT marketplacessuch as OpenSea, NFTs value in Ethereum. So should there be a drop in the NFT wavewhich is closely related to cryptocurrency, it may negatively affect the Ethereum price due to a sell-off.

On top of that, the Ethereum blockchain is facing increasing competition from other layer 1 blockchains, all of which perform similar functions. These include:

Ethereum has been criticized for being inefficient in terms of scalability and high transaction fees. Some of these blockchain rivals – dubbed “Ethereum Killers” – beat it on some performance measures.

The collapse of Terra LUNA also created negative sentiment. The overall crypto market came under greater selling pressure due to a loss of confidence in May.

Expert advice

Several experts have weighed in on the price of Ethereum.

Winkelvoss twins on Ethereum

Tyler and Cameron Winkelvoss are the billionaire founders behind the crypto exchange Gemini. The pair predicted a “crypto winter” – a period of stable trading – in the near term. This is due to the unpredictability of the current macroeconomic environment.

Kevin O’Leary on Ethereum

The “Shark Tank” billionaire called the current “panic event” a “great buying opportunity” in an interview on the Impaulsive podcast. However, he had previously proclaimed that Ethereum would always be the second best after bitcoin, according to CNBC. O’Leary has diversified into multiple crypto assets and is a space advocate.

James Wang on Ethereum

Last year, the former ARK Invest analyst compared Ethereum to where Amazon Web Services was in 2015. He made an ETH price prediction that could reach $40,000 per token one day.

Final take

Current developments such as inflation are likely to have ripple effects in the second half of 2022 for Ethereum. While blockchain has some exciting developments on the horizon, ETH is unlikely to hit new all-time highs this year. That said, the long-term potential is still intact.

Ethereum Price FAQ

Here are some questions people ask about the price of Ethereum.
  • What is the historical performance of Ethereum (ETH)?
    • Since its inception, the Ethereum price per token has increased by more than 59,000%.
  • What is the expected price of Ethereum in 2022?
    • Conservative Ethereum price predictions estimate $1,826 per token. Experts with more aggressive targets see the price reaching $5,783.
  • How much is Ethereum worth in 2025?
    • Conservative Ethereum price predictions estimate $2,630 per token. Experts with more aggressive targets see the price reaching $11,764.
  • What will Ethereum be worth in 2030?
    • Conservative Ethereum price predictions estimate $3,745 per token. Experts with more aggressive targets see the price reaching $23,372.
  • Has Ethereum risen in 2021?
    • In 2021, Ethereum went from $730 on January 1 to $3,682 on December 31.

Daria Uhlig contributed to the reporting of this article.

Information is accurate as of August 9, 2022.

Our in-house research team and on-site financial experts work together to create accurate, unbiased and up-to-date content. We check every stat, quote and fact using trusted primary resources to ensure that the information we provide is correct. You can read more about GOBankingRates processes and standards in our editorial policy.

About the Author

David is a qualified financial adviser in the Republic of Ireland. He holds a bachelor’s degree in business and entrepreneurship, as well as more than five years of investment experience.

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