(Ed. note: we defined a long term forecast for Ethereum, and concluded that by 2020 the Ethereum price forecast is $1000)
(Ed. note: at the bottom of this article, we have posted an update on InvestingHaven’s Ethereum price forecast for 2017 after the flash crash on 27 May 2017.)
(Ed. note: another flash crash of the Ethereum price took place on September 4th 2017, the editorial team has posted a new update at the bottom of this article)
The price of cryptocurrency Ethereum in 2017 is going through the roof, similar to the price of Bitcoin and several other cryptocurrencies. Our Ethereum price forecast for 2017 and later is very bullish.
Interestingly, there are not many Ethereum price forecasts available on the web. One exciting project to be aware of is the project going on over at KoCurrency, where they are currently working on a smart crowd powered Ethereum price prediction channel. However, they are early stage so they still require more data to pour into the system before their platform can output reliable insights. We recommend you sign up for their platform because the more data they process, the more accurate their predictions platform will become. So besides KoCurrency we are among the first ones to forecast the Ethereum price for 2017 and later. There is even no Ethereum price forecast on the official Ethereum (ETH) site ethereum.org.
Ethereum price in 2017
The price of Ethereum is not moving ‘accidentally’ higher. There are several coins in cryptocurrencies universe, not all though, that are moving strongly higher. That is really a result of supply/demand dynamics. And here is the biggest news: this trend only got started. Are we saying that a bubble could develop over time? Yes that’s what we are saying, but not anytime soon yet.
The total market cap of all cryptocurrencies combined has surpassed $60B meantime. To put that figure into perspective: Tesla’s market cap is $50B, Boeing Airlines $100B, Coca Cola $180B (rounded figures for April / May 2017).
In other words, cryptocurrencies are being bought and sold in this world, transactions take place, so they are on their way to become mainstream. Look how trading volume has exploded, see below chart, at the bottom of the chart.
There is nowhere any level of mainstream acceptance yet. Most people even have not heard of cryptocurrencies. So the above chart is about to become much ‘worse’.
The price of Ethereum in 2017 has literally exploded. Rightfully so, because its usage has exploded as well, as we will show in the charts in this article.
At this moment in time, Ethereum’s price is trading around $125. So one Ethereum, one ‘coin’ of the cryptocurrency Ethereum, is worth $125. In recent weeks, the price of Ethereum has gone up fivefold.
An Ethereum price forecast for 2017
Our Ethereum price forecast is based on usage of Ethereum. Although it is very hard to know the volume that Ethereum projects consume, mostly because those figures are not available and many of those applications are private in nature, we can look into the usage charts to derive an idea.
Given the premature state of Ethereum, there is already a strong growth in transactions (2nd chart) and addresses (1st chart).
It is hard to forecast how these data points will develop, but the high level trend is what is of primary interest to us.
Given the enormous untapped potential of Ethereum, and the strong adoption among respected top banks across the globe, we believe this trend acceleration only got started.
Because of that, we forecast that Ethereum’s usage will go up fivefold this year.
Given those data points, our best case price forecast for Ethereum in 2017 is $550, which is a fivefold increase against the price of this week.
Update: Our Ethereum price forecast after Ethereum’s flash crash (28 May 2017)
On Friday 26 May and Saturday 27 May, the price of Ethereum crashed almost 40 percent in less than 48 hours. That was a spectacular price correction, and we reported on this price correction in greater detail in this Ethereum price article. Investors should be careful reading Ethereum price charts, and, more so, news items about this price correction.
The fact of the matter is that on very short timeframes the price crash looks spectacular. However, in the bigger picture it is just another blip similar to two others we have seen in 2017.
Moreover, the price crash just took 48 hours, and then corrected itself to the upside. Most of the losses were recovered on Sunday 28 May. That indicates there are sufficient buyers, and it was simply a flash crash driven by speculator selling. A flash crash is known to be temporary in nature.
We still believe our Ethereum price forecast for 2017 outlined in the original article above is very accurate!
Original source: The article An Ethereum Price Forecast For 2017 originally appeared on InvestingHaven.com
Update: the flash crash in the Ethereum price on September 4th 2017
On September 3d and 4th the price of Ethereum fell sharply and lost some 30% in just 48 hours. Although this is meaningful it was a decrease in line with all other top 10 cryptocurrencies as explained in this article. It is no reason to worry (yet). We still believe Ethereum will outpeform most other cryptocurrencies over time because of the high intrinsic value that this cryptocurrency offers. We stick to our Ethereum price forecast of 1000 USD by 2020.
Update: InvestingHaven is the first in the world to publish a Blockchain Investing Research service
InvestingHaven is the first in the world to offer a Blockchain Investing Research service, subscribe now to get the top 3 to 5 tokens per year and our proprietary risk/reward score for all blockchain stocks trading on public exchanges.
CRYPTO & BLOCKCHAIN INVESTING: Get access to our investing insights: fundamental + technology + chart analysis! Find out our top 10 cryptocurrencies + 7 blockchain stocks. Get instant access to our crypto & blockchain research + portfolio >>