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Ethereum Price Prediction 2022: Explained

Ethereum Price Prediction 2022 can give us an idea about its price in 2022. Do you currently have Ethereum coins and want to know what the future holds for the project? Or maybe you’re wondering how far Ethereum will reach in 2020-2022?

By the way, did you know that if someone purchased Ethereum coins worth $ 10 in early 2016, they would be worth more than $ 10,000 in late 2017?

In any case, in this Ethereum price prediction guide, we will start by briefly explaining what the Ethereum project really consists of, followed by a brief overview of what to consider before acting on a price forecast.

Next, we will discuss some popular price forecasts that have been made by several analysts. Then we will see if it is good to invest in Ethereum or not. And also we will see the Ethereum Price Prediction 2022.

Ethereum Price Prediction 2022: Explained

What is Ethereum?

Ethereum was founded in 2015 by a Russian-Canadian developer named Vitalik Buterin. It is a blockchain protocol that allows people all over the world to send and receive funds without the need for a third party.

However, unlike Bitcoin, Ethereum can do much more than making financial transactions. It became the first blockchain project to host something called smart contract technology. A smart contract is a code that allows people to conclude an agreement without the need for an intermediary.

Once certain conditions are met, the smart contract can automatically transfer funds from one person to another. Like smart contracts, any transaction that takes place in the Ethereum system is available for viewing on the public blockchain, making the network transparent.

In terms of performance, Ethereum can confirm a movement of funds in about 16 seconds. Blockchain can scale a maximum of 15 transactions per second, which is much less than other smart contract protocols, but I will discuss what they intend to do to increase it later.

So now that you know what Ethereum really is, in the next part of my Ethereum 2020-2022 price forecast guide, I will discuss the importance of taking price forecast guides with caution.

Also Read: Cryptocurrency Compare Top 10 Cryptocurrencies

Price Prediction Notice

I thought it would be a good idea to quickly talk about some of the things you should consider when reading someone else’s price forecasts. Nobody can really predict the future of Ethereum. While some people have correct predictions, others are wrong.

No prediction is guaranteed to come true because if this were the case, we would all be very rich. It is important to make sure you always do your research independently and never invest just because you like the sound of a price prediction.

The cryptocurrency market is one of the most volatile industries in the world, with prices going up and down often without a clear reason why. However, when I analyze pricing forecasts, I think the most important thing to consider is real-world events.

This includes things like regulations, future developments, improved technologies, and partnerships. On the other hand, other people prefer to use graphical analysis to predict the future, so it’s up to you to choose the method you prefer to trust.

So now that you know what to consider when reading forecasts, the next part of the Ethereum price prediction 2020-2022 guide will discuss some popular price predictions.

Let’s first look at Ethereum price prediction 2020-2022

Bobby Ullery

The first prediction I wanted to talk about was published by an online analyst named Bobby Ullery. The model used by Ullery is based on the global economy and on the assumption that blockchain technology will play a much more important role in international trade.

Bitcoin and Ethereum will each own 25% of the entire cryptocurrency sector, according to the analyst, which he believes will have a total market capitalization of 4.5 trillion dollars by 2020.

Market capitalization is used to calculate the total value of a cryptocurrency, in the same way, that real-world company are valued. It is obtained by multiplying the current market price of a coin by the total number of coins in circulation. For example, if the value of the coin was $ 20 and 10 million coins were in circulation, the total market capitalization would be $ 200 million.

Now, in the case of Ethereum, although there are no fixed supplies, Ullery uses a total circulation of coins of 100 million, as suggested by Vitalik Buterin.

So, taking into account the above, this Ethereum 2020 price prediction estimates that Ethereum will be worth $ 11,375. This price prediction for Ethereum would give it a total market capitalization of $1 trillion. Is it possible?

In order for Ullery’s Ethereum 2020 price predictions to come true, it should increase its all-time high by just over $ 1,300 by 775%. This isn’t actually an unrealistic prediction considering Ethereum raised its price by 10,000% in 2017. But what do you think?

LongForecast

The next Ethereum 2020 pricing forecast is of a forecasting service called LongForecast. This particular analyst is less positive about Ethereum’s future price.

As you will see in the screenshot below, LongForecast estimates that in January 2020, the price of Ethereum will be $ 724. So, for the next 6 months, they think the price will go up and down, from a minimum of $ 474 to a maximum of $ 672.

January 724

February 672

March 564 

April 474

May 542

June 531

These figures are well below the absolute record that Ethereum had at the end of 2017, so the analysts are not sure of Ethereum future. However, the biggest problem with this forecasting service is that it does not provide any explanation as to how it was expected.

This is very important information, but it seems to have been left out. In my opinion, for a price prediction to be valid, there must be a reason for the forecast to be made. This is why you should be careful of the predictions you find online.

CoinKir

Moving on, the next forecast on Ethereum 2020 prices is that of CoinKir. For making future predictions CoinKir uses technical price analysis.  It is when you look at historical price movements and look for trends that may reoccur in the future again.

Month/Date Opening Price Closing Price Change
January 2020        $720.00         $780.00          +8.3%
February 2020        $780.00        $890.00         +14.1%
March 2020        $890.00         $810.00         -8.6%
April 2020        $810.00         $1010.00         +24.4%
May 2020        $1010.00         $1125.00         +11.3%
June 2020        $1125.00         $1080.00         -4.0%
July 2020        $1080.00           $1175.00         +8.7%
August 2020        $1175.00         $1208.00         +2.8%
September 2020        $1208.00         $1345.00         +11.3%
October 2020        $1345.00             $1420.00         +5.5%
November 2020        $1420.00                 $1488.00         +4.7%
December 2020        $1488.00           $1455.00         -2.2%

 

It is a popular strategy used in real-world financial markets. However, financial markets often have more than 50 years of data to look at, unlike cryptocurrency markets. However, according to CoinKir, the Ethereum price will work very well in 2020.

CoinKir analysis predicts that Ethereum will start 2020 at around $ 720 and then slowly increase. By the end of 2020, they expect Ethereum to double to $ 1,488. It’s an interesting prediction because it means that they don’t expect Ethereum to reach record levels until November 2020.

If it reached $ 1,488, it would give Ethereum a total market capitalization of around $ 148 billion. If this prediction is correct, it would mean that Ethereum will need another 18 months before it is ready for a race for big prices. This may be the case, as the team is working on various technical developments.

So now that you know some of the most popular predictions for ETH’s future, the next part of my Ethereum 2020 price forecasting guide will look at some of the real-world events that could affect Ethereum price.

Ethereum Events in the Real World and Ethereum Price Prediction 2022

The blockchain of Ethereum can only process around 15 transactions per second. This is really a big problem for the project as it has to increase dramatically to manage global demand.

For example, in late 2017, a new decentralization application (dApp) called CryptoKitties was processing so many transactions that it almost put the network out of service. It was just a dApp, so how serious would it be if other dApps became increasingly popular?

As a result, there are no other smart contract blockchains that work much better than Ethereum. For example, NEO can process transactions in thousands per second and other blockchains are under construction that claims to be able to handle millions per second.

The Ethereum team has realized these challenges and they have some ideas to work on, and each of these ideas has the potential answer to why Ethereum is going up in the future?

First, we start with proof-of-stake

Proof of Stake

Each blockchain platform has its own consensus mechanism, which determines how transactions are verified on the network. Ethereum uses the same Bitcoin model, which is called proof of work.

The proof-of-work mechanism creates truly complex puzzles that no human being can solve, requiring powerful computers. As long as you have the right equipment, you can connect your device to the system to solve the puzzle. If you succeed, you earn the cryptocurrency as a reward. This is called mining.

However, proof of work requires a great deal of electricity. Also, as the puzzle gets harder and harder as more and more users start mining cryptocurrency, you need very expensive hardware to get a chance to win the prize.

This is why Ethereum wants to change its consent mechanism for proof of participation. The model works differently from proof of work, as it makes other people’s participation in the extraction process fairer and also requires much less electricity.

With the participation test, your chances of winning the mining prize are based on the amount you have “wagered”, which means the number of coins you have invested in the system. The theory is that the more coins you have, the more motivation you need to make sure the blockchain remains secure and safe.

So this is proof of the stake. The next part of the Ethereum pricing prediction guide will see how they intend to improve the number of transactions the network can handle at any given time. 

Sharding

This is a protocol on which developers are working to change the way transactions are verified in Ethereum. In the current model, each “node” that supports the blockchain must confirm every transaction that has been sent.

Node is used to describe a device that has been connected to the blockchain to help verify transactions. The more nodes, the more secure the network will be.

However, for example, imagine that 100 transactions have been sent to the Ethereum system. This means that they must all be verified by the blockchain before they are confirmed valid. This would mean that the 16,000 nodes should verify the 100 transactions individually, which is not very efficient.

However, Sharding does things differently. Put the knots in groups. Each group of nodes is called a shard, with different groups working on different parts of a transaction. Finally, it creates a more efficient way to confirm transactions and allows the network to increase the amount it can process every second.

Plasma

This (plasma) protocol processes unnecessary data and wants to delete it from the main blockchain to free up space. For example, when someone creates a new smart contract, it is automatically published on the main Ethereum blockchain. Although the smart contract may not be completed for a long time (or perhaps never), it is still sent to the blockchain.

This caused many problems because nodes have yet to verify transactions, which means that it slows down the network. The plasma solution plans to create an additional layer on top of the main blockchain, which will be used for incomplete smart contracts.

Once the smart contract is operational, it can be sent to the main blockchain. Vitalik Buterin said he plans to install both plasma and sharding, which means that if successful, the Ethereum blockchain could soon process thousands, if not millions, of transactions per second.

If so, Ethereum is likely to increase in the near future, as many analysts believe these problems are holding back the growth of the project. However, once implemented, who knows how far Ethereum can go.

However, it is important to remember that the three above solutions are still in their infancy, so it is not clear when they will actually be ready. The best thing to do is to regularly check for online updates.

So now that you know the technical improvements the team is working on and how it might affect their prices, the next part of my guide to Ethereum 2020 price forecasts will look at what I think may happen.

Ethereum Price Prediction 2022

Date/Month Min. Price Max.Price Avg. Price Change
January 2022 $223.756 $329.054 $263.243 8.53%
February 2022 $230.709 $339.278 $271.422 11.90%
March 2022 $236.926 $348.420 $278.736 14.91
April 2022 $243.722 $358.415 $286.732 18.21%
May 2022 $250.277 $367.981 $294.483 21.37%
June 2022 $256.859 $377.734 $302.187 24.58%
July 2022 $263.189 $387.042 $309.634 27.65%
August 2022 $269.634 $396.521 $317.217 30.87%
September 2022 $275.982 $405.856 $324.685 33.86%
October 2022 $282.032 $414.753 $331.802 36.79%
November 2022 $288.195 $423.816 $339.053 39.78%
December 2022 $294.057 $432.436 $345.949 42.62%

How far will Ethereum Go?

Before discussing the future of Ethereum, I wanted to clarify that I am not giving you an investment or financial advice. In the end, nobody knows the answer to “How far can Ethereum go?”

Ethereum is the first and original smart contract blockchain project, making it the second most popular cryptocurrency for so long. Not only do people trust the platform, but they know the team is really talented. So I think Ethereum will always be the number one platform for smart contracts.

However, there are no guarantees, just because developers really need to fix Ethereum’s scalability issues. It’s great that they are working on many different ideas, but if they take too long or fail, other blockchains could take over.

As we know there are already blockchains capable of processing thousands of transactions per second and others are under construction.

But can Ethereum do it? Sure! On the other hand, cryptocurrency markets are still in their infancy, so there is no guarantee of what will happen. Some people say future regulation is a problem, but some think it will be a good thing.

For example, Japan has completely regulated the cryptocurrency sector in the same way it regulates its financial services sector. This allowed Japan to have one of the largest cryptocurrency trading volumes, as well as over 200,000 different stores in the real world that accept it.

Conclusion

Ethereum Price Prediction 2022 may be predicted on the Ethereum price which it can achieve in 2020. Ethereum was founded in 2015 by a Russian-Canadian developer named Vitalik Buterin. No prediction is guaranteed to come true because if this were the case, we would all be very rich. It is important to make sure you always do your research independently and never invest just because you like the sound of a price prediction.

The cryptocurrency market is one of the most volatile industries in the world, with prices going up and down often without a clear reason why. However, when I analyze pricing forecasts, I think the most important thing to consider is real-world events.

However, there are no guarantees how far will Ethereum goes, just because developers really need to fix Ethereum’s scalability issues. It’s great that they are working on many different ideas, but if they take too long or fail, other blockchains could take over.

As we know there are already blockchains capable of processing thousands of transactions per second and others are under construction.

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