Ethereum Price Prediction 2021: Key Important Factors Affecting ETH Price

In October, the price of Bitcoin reached a historical maximum, close to $67K. And in general, the situation on the market is quite positive. In the United States, the first BTC exchange-traded fund (ETF) was approved, and MasterCard announced plans to add digital assets to its payment system.

These trends are driving the altcoin season to begin relatively soon. And the main one, Ethereum, has already shown impressive results. The growth of the second largest cryptocurrency started in parallel with Bitcoin. And on November 4, ETH set a new absolute price record exceeding the $4,800 mark for the first time. What is the prediction for Ethereum price? Today, we will try to find out!

Ethereum Future Price Prediction 

Before we consider Ethereum price prediction, let’s analyze the ETH price dynamics. Ethereum reached the very first price peak at the beginning of 2018 — the cryptocurrency was trading for $1,200. However, for a long time, the cost of ETH fluctuated around $90–$300. Everything changed in the summer of 2020 when the cryptocurrency rate went up sharply — and the upward ETH price trend continues to this day.

1 Year ETH Price Chart

In January 2021, the altcoin broke its absolute record but did not even think to stop there. By mid-April, the cost of Ethereum came close to $2,500. Then the cryptocurrency creators carried out a hard fork, which is part of the plan to switch to Ethereum 2.0. On May 12, the value of Ethereum exceeded $4,300 for the first time.

The rapid growth was followed by a period of decrease, but in the fall, the ETH rate increased again — on October 21, it broke the spring record for the first time. After that, the price of the first altcoin dropped slightly, and by October 26, ETH was trading at $4,200.

What is Ethereum future price prediction? Well, experts believe that further growth of the ETH rate is possible. For example, FxStreet analyst Sarah Tran sees the prospects as follows:

The projected target for Ethereum price is at $6,365, forecasting a 60% rally. While the two technical patterns establish an optimistic outlook for ETH, the token may be confronted by a headwind at its all-time high.

Ethereum can acquire the title of the main coin of 2021 for private investors. At the beginning of the year, many analysts made an Ethereum price prediction stating that this altcoin was waiting for a long-term upward trend. The specialists relied on the announced network’s switch to the Ethereum 2.0 version.

The switch to the new system, on the one hand, will encourage investors to buy back some of the coins to stake them and receive income. On the other hand, they will create pools, thereby pulling the coin out of the market. And the fewer coins on it, the more stable the cryptocurrency rate will be, experts are sure. This, in turn, will lead to a positive Ethereum future price prediction.

On October 27, the Altair update to the Beacon Chain was released. It is an update that brings support for light clients, pre-validator inactivity leak accounting, a rise in slashing severity, and clean-ups to validator rewards allowing for simplified stated management.

Ethereum Price Prediction Today: What Factors Influence ETH Forecast?

At its peak, Ethereum’s growth was 491% compared to the beginning of the year. What is Ethereum price prediction today? Well, many experts are confident that the altcoin has the potential for further growth.

Simon Peters, an analyst at fintech company eToro, believes that ETH owes its growth to blockchain updates:

Ethereum is in such high demand because the asset is undergoing changes to make it even more decentralized and even more secure. This is attracting buyers from both the institutional and retail worlds.

The head of the London Academy of Trading, Paddy Osborn, is confident that Ethereum investors are less prone to panic:

The supply of Ethereum is not capped like Bitcoin or Litecoin, but it is seen as one of the more sophisticated cryptocurrencies, and it’s currently very much in vogue. It has risen 1000 percent since last summer, but for me, it has some of the best potentials for further gains.

So, what is Ethereum price prediction 2021? Well, we can conclude that the recent network updates, a stable situation in the economy, and interest from institutional investors can positively affect the ETH rate. The latter includes, for example, the interest of the Bank of France, which bought digital bonds based on the Ethereum blockchain for the digital euro. But there are other reasons why the value of the cryptocurrency may continue to rise.

For example, Ethereum’s forecast was significantly impacted by the NFT boom that began in February 2021. Non-fungible tokens allow you to sell any digital art online so that only one holder can own them. After the purchase, they receive a unique token, which confirms their ownership rights. NFTs can run on different blockchains, and many of them are based on Ethereum.

An Ethereum-Based NFT Game Axie Infinity

At the same time, the Ethereum Foundation, an organization created to support the coin, entered into a partnership agreement with Reddit, one of the largest forums. One of the joint projects of the companies will be the introduction of the digital currency Community Tokens, which will serve as a reward for users to encourage their active participation in the life of the community. 

Experienced traders and analysts give an optimistic Ethereum price prediction today. A venture fund ‘Initialized Capital’ co-founder, Garry Tan, believes that altcoin is heading towards the $10,000 price mark. 

What Is the Prediction for Ethereum Price: How Does Bitcoin Affect Ethereum Value?

In an attempt to forecast the Ethereum rate for 2021, it is worth focusing primarily on the dynamics of the ETH/BTC trading pair. Not so long ago, Ethereum demonstrated ‘independence’ from Bitcoin price fluctuations for the first time in its history. Previously, any BTC drawdown caused a protracted decrease in ETH price, and a similar situation was with the growth of the rate.

In April, Ethereum didn’t follow the Bitcoin trend and moved in the opposite direction. This happened shortly after the Berlin update.

April 2021 BTC vs. ETH Chart (Correlation Chart Included)

There are several significant differences between Bitcoin and Ethereum. The main one is that the emission of Ethereum, unlike the first cryptocurrency, is not limited. This means that theoretically, you can issue as many tokens as you like, which is why the potentials of the two cryptocurrencies are not equal.

Many analysts and even institutional investors highlight the advantages of ETH over other cryptocurrencies. For example, JPMorgan cited stable liquidity, transaction speed, and less dependence on the derivatives market as the main advantages of the first altcoin.

Conclusion

The further Ethereum growth will depend on market sentiment and future network updates. The switch to Ethereum 2.0 is called one of the main factors for the future growth of the asset price. Anyway, always do your own research before investing, and don’t invest more money than you are willing to lose.

If you’re interested in buying ETH, you should definitely think about doing this at Switchere. On our platform, you have an opportunity to buy ETH in the fastest and most convenient way using your credit card. Moreover, we offer some surprising bonuses! Users of our platform enjoy a 0% service fee for the first order.

Here you can find a step-by-step instruction on how to buy ETH coin at Switchere — it’s easy as A, B, C!

What is the prediction for Ethereum price? Feel free to share your ETH price forecasts in the comments below!

Leave a Reply

Your email address will not be published.