Ethereum Price Prediction: Will Ethereum Crash?

These days cryptocurrency is everywhere. You’re hearing about it on the news, at work, in the gym, and now even your grandmother is asking you what it is. Price predictions, especially the Ethereum price prediction, are the trending topic right now.

Four-five years ago, it was nowhere near as popular. It was only in 2017 that cryptocurrency really started to be noticed. In December 2017, the prices of cryptocurrencies got really, really high. The popularity of cryptocurrencies increased a lot.

The cryptocurrencies that were talked about the most were Bitcoin and Ethereum. Bitcoin and Ethereum price predictions were in the news every single day. The future of Ethereum and Bitcoin were some of the biggest trends on Twitter, and they still are.

In this guide, we'll cover the Ethereum price prediction. If you’re interested in Bitcoin predictions, read our Bitcoin price prediction guide. If you'd like to buy or sell some Bitcoin or Ethereum, though, you should also look into some of the top crypto exchanges, too!

After reading this, you will:

  • Have a good understanding of how Ethereum predictions work
  • Know what the experts think about the future of Ethereum
  • Know how the Ethereum price has changed in the past
  • Even be able to make your own Ethereum price prediction!

Before I get started, you need to know a little about Ethereum, though.

The Key Point of Ethereum

Here are some key points of Ethereum:

  • The second-biggest cryptocurrency in the world
  • It was the first cryptocurrency to use smart contracts
  • It was founded in 2014 by Vitalik Buterin
  • Its currency is called ‘Ether’ (ETH)

Put simply, Ethereum is a platform that lets you build apps on the blockchain (like the blockchain that Bitcoin uses). Think of Ethereum as an operating system, like Windows or Mac OS!

The smart contracts that it uses are similar to invoices. There is one big difference, though. An invoice is paid manually, so the person waiting to be paid must trust that the invoice will be paid. With a smart contract, you don’t have to trust anyone. It will always be paid.

That’s a very, very basic explanation of Ethereum and its smart contracts. As you can see, it is quite different to Bitcoin, which is just a digital currency. To learn more about Ethereum itself and its differences to Bitcoin, read our Ethereum vs Bitcoin guide.

How an Ethereum Price Prediction Works

Now that you know a little about Ethereum, we can get started! The first step to learning how to make an Ethereum price prediction is to understand how and why the Ethereum price changes.

Then, when we move on and look at some Ethereum price predictions, you’ll understand how each Ethereum price prediction works.

The Market

If there is one rule you need to remember, it’s this: the price of Ethereum is whatever the market says it is. When I say ‘the market’, I mean the people who are buying and selling Ether.

How this works:

  1. John wants to buy Ether and the price is currently $800 for 1 ETH;
  2. He tries to buy it for $800 on an online exchange (a place where people buy and sell cryptocurrencies to each other);
  3. Nobody is selling their Ether for $800 right now because they currently like Ether a lot and think it is worth more than $800;
  4. John really wants to buy Ether right now, so he says he’ll pay $820 for it;
  5. Someone accepts John’s offer and sells 1 ETH to John for $820;
  6. Now, the new market price of 1 ETH is $820;

Sometimes, this keeps happening until the price of 1 ETH goes up by $200 or more in one day. This is all because of something called supply and demand.

Supply and Demand

Oil is a perfect example of supply and demand. When there is too much supply (oil) and not enough demand (people wanting to buy oil), the price of the supply becomes cheaper. This is the same for Ether and other cryptocurrencies and it reflects in the Ethereum price predictions.

One of the biggest reasons for a big change in supply and demand is the media.

The Media

When there is good news about Ethereum or an expert gives a new Ethereum price prediction that says the Ether price is going to rise, the market listens! Lots of people start trying to buy Ether, and the sellers don’t want to sell it. So, what do the buyers do? They start offering a higher price to buy the Ether from the sellers.

Ethereum price prediction: the media.

When there is bad news about Ethereum, what do you think happens? That’s right… lots of people start trying to sell their Ether. But, there aren’t enough buyers now to buy all the Ether that is being sold. So, what do the sellers do? They start offering a lower price to sell their Ether quickly to the first person that wants to buy Ether.

Now that you know why the price of Ether changes, let’s take a look at some Ethereum predictions! With your new knowledge, you’ll have a much better understanding of how each expert has made their Ethereum price prediction.

The Future of Ethereum

The questions that everyone wants the answers to - will Ethereum rise? Will Ethereum crash? It’s always best to ask an expert, so here’s what Ethereum price predictions they have.

Blockchain Advisor and Entrepreneur, Brian Schuster

Mr. Schuster seems very confident about Ethereum and cryptocurrency in general. His Ethereum price prediction is that the price of Ether could be $100,000 by the end of 2020! That’s huge!

He says that the total cryptocurrency market cap could get to $10 trillion at the end of the year, and that is why he thinks the Ether price could be more than $100,000.

Ethereum price prediction: blockchain technology.

Note: Ethereum’s ‘market cap’ is the total value of all Ether together. So, the ‘total cryptocurrency market cap’ is the total value of all cryptocurrency coins together. That means Bitcoin, Ethereum, Litecoin, Ripple, and all other cryptos together.

Ethereum Co-Creator, Steven Nerayoff

An Ethereum forecast from one of the founders of Ethereum. Interesting!

Just like Mr. Schuster, Steven is confident about Ethereum. His Ethereum forecast isn’t as huge as Mr. Schuster’s, but it is still very positive — Steven has predicted that the price of Ether could triple this year.

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Ethereum Founder, Vitalik Buterin

Vitalik has said that 2020 will be the year of “ETH in action”. But, that’s all he’s said. He hasn’t predicted a certain Ethereum price.

So, while Vitalik Buterin’s Ethereum forecast for 2020 doesn’t mention a price, it is still a very good thing for Ethereum. If 2020 is the year of ETH in action, we can only guess that the price is going to have a good year, too!

Will Ethereum Crash?

When it comes to discussing "the Ethereum crash", many Ethereum price predictions tend to look skeptical at it.  Many think of Ethereum as the soil of cryptocurrencyso many things are built on it. For these reasons, it is hard to imagine that Ethereum will crash without then recovering afterwards. By this, we mean that if Ethereum did crash, we believe the price would go back up eventually.

Ethereum price prediction: ETH on a phone.

This doesn’t mean that it won’t happen. Just like every cryptocurrency, stock and commodity (gold, silver, oil etc.), Ethereum could crash.

and guess what?

It’s happened before.

Let’s look at the history of Ethereum and its price.

The History of Ethereum

The chart below illustrates Ethereum’s price over the last 12 months. The green line is the price of Ethereum in dollars. As you can see, the price has gone way down! It started at around $1416 at its peak, and it is now on around $300 (27.07.20).

Ethereum price prediction: 12-month ETH chart.

It’s been a couple of crazy years for Ethereum. The investors who bought Ethereum at the beginning of the year have experienced huge losses!

Let’s talk money: if you had invested $1,000 into Ether when it was $1416 at the start of 2018, it would now be worth around $11. That’s underwhelming, to say the least.

Let's take a look at a different chart:

Ethereum price prediction: Ethereum charts compared to Bitcoin.

This is an Ethereum price chart from June 2017 to July 2017. June 12th until July 16th, to be exact. The price of Ether went from $397 all the way down to $170. Yeah… this wasn’t so great for investors.

Well, it was fine for the investors who held onto their Ether and didn’t sell. But some investors panicked. They got scared because of the bad news (this is what I was talking about earlier!) that was being published about Ether. They sold their Ether and made a huge loss. As you can see, at this time, the Ethereum price prediction wasn't very positive.

If they bought at $397 and sold at $170, they would have made a 57.2% loss.

This is why a lot of investors talk about ‘investing with emotions’. They say that you shouldn’t invest with your emotions (i.e. panic selling/buying), and instead just invest in what you believe. If you believe that Ethereum is changing the world and that the technology is going to be around for a long time, you shouldn’t listen to what the market is saying.

Now, let’s take a look at one final Ether price chart.Ethereum price prediction: Ethereum and Bitcoin price chart in 2018.

So, what happened here…? This was at February 2018. As you can see from the chart, the price of Ether crashed again.

It didn’t get as low as it did in the crash of June 2017 ($170), but it did go down to $644 (02.06.18). Just 5 days before that (02.01.18), the price of Ether was $1,130. That’s a big crash! Ether lost almost half of its price in 5 days.

It wasn’t just Ether that crashed, though — it was the whole cryptocurrency market. In fact, almost all cryptocurrencies lost half of their price. Some investors say that the crash happened because of bad news in China and South Korea; cryptocurrency is very popular in both of these countries.

So, what did the Ether crash of early February 2018 mean for investors? Well, if you bought Ether at $1,130 on February 1st and sold at $644 on February 6th, you would have made a loss of 43%. So, it wasn’t as bad as the June 2017 crash (a loss of 57.2%), but it was still bad. A lot of people lost a lot of money.

Conclusion

You now know how Ethereum price predictions are made, and what the experts are saying about the future of Ethereum. It’s always important to remember, though, that Ethereum predictions are just what they say they are — predictions. Nobody knows what the future is! There isn’t a single person in the world that knows what the price of Ether will be tomorrow, next week or next year. It’s impossible!

All we can do is predict. By using the information in this guide and following the progress of Ethereum, you can make your own Ethereum price predictions, too! If you have an Ethereum prediction of your own, be sure to let us know! You can compare and contrast your own predictions with ours, and see if there are any points that differ!

Also, if you'd like to start trading cryptocurrencies, make sure that you're using only the best exchanges out there!

Important note: You should always speak to a financial advisor before making any major investments and never invest more than you can afford to lose.

Disclaimer: There are also other ways to predict the price of Ethereum, like chart analysis. This involves reading a lot of charts and graphs and using them to guess how the price will change. I don’t recommend using chart analysis to make your decision as to whether or not you want to buy Ethereum, which is why I didn’t talk much about it in this guide. They are often difficult to understand - you would have to have a lot of knowledge on the topic to be able to analyze them and make the right predictions.

(There is nothing wrong with using chart analysis to make predictions, but I don’t recommend that you buy or sell Ethereum just because of how a chart looked!)

*Note: this article is a personal opinion. Before making any investment decisions you should consult with a professional.

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FAQ

Is it worth investing in Ethereum?

It's a tough call. Depending on your source of information, you might learn that it's the perfect time to invest in ETH... or the worst. Truthfully, it all does also depend on your reasoning for the investment, its type (short- or long-term), your knowledge in the field, and so on. If you do decide to invest, however, make sure that you do so with a trustworthy and reliable exchange.

Will Ethereum rise or crash?

Quite frankly, that's impossible to say for sure! As you've probably noticed already, the cryptocurrency market is quite volatile - it rises and crashes seemingly randomly, without any obvious indications. That said, if you take the time and research everything related to ETH (i.e. the best exchanges, ETH-related news, etc.), you might be able to predict the next rise or crash.

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Picking out the best crypto exchange for yourself, you should always focus on maintaining a balance between the essential features that all top crypto exchanges should have, and those that are important to you, personally. For example, all of the best exchanges should possess top-tier security features, but if you’re looking to trade only the main cryptocurrencies, you probably don’t really care too much about the variety of coins available on the exchange. It’s all a case-by-case scenario!

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Reading through various best crypto exchange reviews online, you’re bound to notice that one of the things that most of these exchanges have in common is that they are very simple to use. While some are more straightforward and beginner-friendly than others, you shouldn’t encounter any difficulties with either of the top-rated exchanges. That said, many users believe that Coinbase is one of the simpler exchanges on the current market.

What is the difference between a crypto exchange and a brokerage?

In layman’s terms, a cryptocurrency exchange is a place where you meet and exchange cryptocurrencies with another person. The exchange platform (i.e. Binance) acts as a middleman - it connects you (your offer or request) with that other person (the seller or the buyer). With a brokerage, however, there is no “other person” - you come and exchange your crypto coins or fiat money with the platform in question, without the interference of any third party. When considering cryptocurrency exchange rankings, though, both of these types of businesses (exchanges and brokerages) are usually just thrown under the umbrella term - exchange. This is done for the sake of simplicity.

Are all the top cryptocurrency exchanges based in the United States?

No, definitely not! While some of the top cryptocurrency exchanges are, indeed, based in the United States (i.e. Coinbase or Kraken), there are other very well-known industry leaders that are located all over the world. For example, Binance is based in Tokyo, Japan, while Bittrex is located in Liechtenstein. While there are many reasons for why an exchange would prefer to be based in one location over another, most of them boil down to business intricacies, and usually have no effect on the user of the platform.