Ethereum Network and Token: Let us dig deeper
Ethereum price rebounded in February as the overall risk sentiment in the financial market improved. On February 9th, ETH rose to a high of $3,200, which was the highest level since January 20th, 2022. It has risen by about 47% from the lowest level in 2022 to have a combined market capitalization of over $381 billion.
According to CoinMarketCap, the total ETH in circulation is about 119.50 million. The supply will continue shrinking because of the burning mechanism that was introduced during the London hard fork in 2021. Data by ETH Burned shows that 1.799 million Ethers have already been burned.
According to DeFi Llama, Ethereum is still the biggest layer 1 blockchain project in the world. There are 517 DeFi projects in its ecosystem that have a combined total value locked (TVL) of $127 billion. As a result, Ethereum has a dominance of about 59%. Some of the biggest DeFi projects in its ecosystem are Curve Finance, Maker, Convex Finance, and Uniswap, among others.
In addition, Ethereum has been used to build some of the best-known blockchain platforms in the metaverse, non-fungible tokens (NFTs), and gaming. Some of the top platforms built using the platform are Decentraland, OpenSea, Loopring, and Zapper, among others.
Ethereum (ETH) price history and technical analysis
The four-hour chart shows that the Ethereum price declined to a multi-month low of $2,160 in January as worries about the hawkish Federal Reserve spread. That price was 55% below its highest level in November last year.
In the past two weeks, however, the ETH price has made a steady recovery. As a result, it has moved above the 25-day and 50-day exponential moving averages (EMA). The two averages have even made a bullish crossover.
Moreover, the coin has managed to move above the 38.2% Fibonacci retracement level and the Ichimoku cloud. Oscillators like the Relative Strength Index (RSI) and the MACD have continued to rise.
Ether has also formed an ascending channel that is shown in red and the current price is slightly below the upper side. Therefore, the path of the least resistance for the coin is north, with the next key level to watch being at $3,500.
Ethereum (ETH) price prediction for a year
Ethereum price will likely continue rising in 2022 even as the Fed maintains a hawkish tone. The main catalyst will be the transition from a proof-of-work platform to a proof-of-stake network. In addition, the growing adoption by developers and the clarity of regulations will be a positive catalyst.
For example, the Securities and Exchange Commission (SEC) is expected to provide some guidelines about the industry. These moves are necessary to incentivize institutional investors.
Data compiled by Wallet Investor estimates that Ethereum will end the year above $5,000. The numbers estimate that Ether bottomed in February.
Another estimate by Long Forecast is that Ethereum will jump to $4,5076 in March this year and then end the year at about $3,800.
Meanwhile, an estimate by Coin Price Forecast notes that Ethereum will rise to $6,635, which is about 109% above the current level.
Ethereum (ETH) price prediction for 2025
In all fairness, it is relatively difficult to predict where a volatile coin like Ethereum will be in 2025. For example, few people would have predicted that the coin’s price would rise to almost $5,000 in 2021.
However, in my estimation, I believe that the price will be substantially higher than where it is today. For example, the stock-to-flow model estimates that Bitcoin will be trading at $125,000 in 2025. And today, the ratio of Bitcoin and Ethereum is about 13. Therefore, if the two coins keep rising and maintain the ratio, we can estimate the price of ETH to be at $43,900 (13.8 x 3,184).
Meanwhile, an estimate by Long Forecast is that Ethereum will end 2025 at about $5,395. Another study by Gov Capital predicts that Ethereum will end 2025 trading at $8,300.
Ethereum (ETH) in questions and answers
Is Ethereum coin real?
Ethereum is a real coin and with a real vast and multifaceted underlying blockchain. It is the second-biggest cryptocurrency in the world after Bitcoin. Moreover, it has been around since 2014, making it older than most altcoins.
Will Ethereum reach $10,000?
Ethereum has had a spectacular performance in the past few years. It managed to move from less than $5 to almost $5,000 in 2021. Most importantly, Ethereum has real usage in the blockchain industry. Therefore, with its supply set to keep falling and demand rising, there is a likelihood that the price will rise to $10,000 in the next few years.
Should I buy Ethereum coin?
If you are into cryptocurrencies, then ETH is a good investment. It has real-world uses and the developers are working to fix its key challenges. These actions will lead to more demand for the coin.
How much will be Ethereum be in 2025?
Based on historical data, there is a likelihood that the price will be higher. Therefore, giving it a 2x multiple means that the price could rise to at least $6,400 in 2025.
Where do I buy Ethereum token?
Because of its popularity, you can buy ETH on centralized exchanges, including the two largest cryptoexchanges globally, Coinbase and Binance. You can also buy it in wallets like PayPal and Skrill.
