Ethereum is the most well-known altcoin, and it’s much more than just another cryptocurrency for many investors and enthusiasts alike. And despite its rough first half of the year, experts predict it could still get back above $4,000 in 2022.
Ethereum’s native token, ether (ETH), has grown immensely in value since its creation in 2015. Launched by computer programmer Vitalik Buterin, ether has increased in price from $0.311 at its 2015 launch to around $4,800 at its highest late last year — with plenty of volatility along the way.
A differentiating feature for ethereum — unlike bitcoin and other cryptocurrencies — is its utility as a software network that allows developers to build and power new tools, apps, and NFTs. The blockchain-based software network has many uses and applications across the tech world, especially for gaming, music, entertainment
Ethereum’s price continues to mostly live in the $1,300 price range, but the price dropped significantly this week. Namely, the token fell to $1,200 on Sunday, but recouped on Monday. The price now sits in the low $1,300s as of Friday afternoon, which has been typical in recent weeks, as the token has been on a steady downward trend ever since the ethereum “merge” was completed on Sept. 15.
Some investors are wondering whether stable crypto prices in the face of poor stock performance indicate that crypto will stop tracking the stock market soon. Experts don’t think the correlation has faded yet, though it has loosened. Experts anticipate that crypto will need more time before it completely breaks free from tracking the stock market.
Though ethereum’s prices remain low, they’ve held surprisingly steady over the last couple of weeks, just like bitcoin. This is remarkable because the stability came at a time when foreign currencies and the stock market tumbled. Experts think this could indicate that long-term investors remain undaunted by bad economic news.
Where prices are headed, though, is anyone’s guess; potential catalysts for increased volatility towards the end of the year include inflation reports, Fed meetings, the strength of the U.S. dollar and the midterm elections.
Despite recent shortcomings, ether’s ROI is still nearly 300% at an annualized rate. That means early investors have nearly quadrupled their investment every year since the summer of 2014. Crypto prices are notoriously volatile, however, so financial experts say to only invest what you can afford to lose, and never at the expense of foundational goals like emergency savings and high-interest debt payoff.
So how high do experts expect ether’s price to climb? Here’s a look at the factors contributing to ethereum’s volatile, yet upward-climbing, price projections, and what experts predict for the rest of this year.
Ethereum Price Prediction for 2022: Between $500 and $4,500
We asked several experts their ethereum price forecasts, and the general consensus is ETH could once again break $4,000 in 2022. And a recent ethereum price prediction by Bloomberg intelligence analyst Mike McGlone has it ending the year between $4,000-$4,500.
Ether could be in for another big crash this year, with its price dropping to as low as $500. Crypto market analyst Wendy O expects ETH to drop as much as 85% from its all-time high of $4,800, which would lead it to around $750. Venture capitalist Kavita Gupta says ETH could fall as low as $500 if the broader market sell-off deepens.bangladesh
Now would be a good time to note that each expert we spoke with qualified their ethereum forecasts by saying it is nearly impossible to predict with certainty. The crypto news outlet Coinpedia predicted ETH could end 2022 between $6,500 and $7,500 if the same bullish upswing that started in mid 2021 were to continue. However, 2022 brought a bearish downturn in the crypto market, making it clear that ethereum’s price is not going to rise from sentiment alone. Indeed, Coinpedia has since adjusted its prediction for 2022 to $2,500.
Some experts have said ETH’s price will be even more volatile than bitcoin in the near future, mainly thanks to ethereum’s transition to a less energy-intensive version that insiders colloquially refer to as “The Merge.” Ethereum’s upgrade could make it more appealing and sustainable for widespread use, but until that happens, experts are waiting to see how investors and companies building their tech on ethereum’s platform respond to the changes.
Whatever happens in the near future, investors will need to see improved demand and functionality for ether’s price to continue rising in the long-term. The blockchain now has considerable competition from similar platforms that are filling in its gaps while the ethereum team works to transition to its second-generation updates.