Ethereum Price Prediction AUD: How Far ETH Can Climb In 2022

Ethereum (ETH) price prediction for 2021 looks set to continue tracking its growing market dominance. But can the up and comers nipping at its heels slip it up?

  • Ethereum (ETH) has been hit particularly hard amidst the recent crypto market chaos, with nearly 50% of its value erased in just the last month alone…
  • Ethereum is currently worth $1,204 ($1,733 AUD) per token and still commands the second largest market cap in the crypto market, valued at $131 billion ($189 billion AUD) overall.
  • Ethereum’s long-established position as a market leader and intrinsic technological value grants it a dominance rivalled only by Bitcoin, despite growing threats of competitors and some infrastructural concerns.
  • Despite the recent bloodbath, some experts are still confident in the future of the Ethereum network and predict that its price will easily increase by more than 1000% by 2030.

There’s no nice was to say this… Ethereum (ETH) has been absolutely walloped during the recent crypto market turmoil, with the second largest crypto asset seeing 49.7% of its value erased in the last 30 days…

Following a rough year of mostly downward price action, Ethereum has been smashed hard, especially when compared with the rest of the crypto market — Bitcoin is only down 35% for the last month while other tokens such as XRP & ADA have taken even less damage, down 32% and 21% respectively.

So, is Ethereum utterly doomed? Or is there hope yet for the largest virtual network in the crypto ecosystem? What can investors expect from Ethereum in the coming months, and what’s a reasonable price prediction for Ethereum throughout the rest of this year?

Despite the current market conditions, ETH may yet present investors with a unique opportunity, especially when considering its current price. After suffering some considerable delays, Ethereum will be announcing its transition to Ethereum 2.0, which takes its old Proof-of-Work system (slower and environmentally hazardous) and upgrades it to a faster, cleaner one called Proof-of-Stake. 

An exact date of the transition is yet to be announced, but Ethereum has announced that the upgrade will occur in Q3 (July – September). If Ethereum can pull off the upgrade without any major problems, the market should respond positively and potentially cause a major surge in price.

What Is Ethereum?

First conceived in 2013 by Canadian-Russian programmer Vitalik Buterin, Ethereum has drawn widespread recognition for both its utility as a decentralised means of currency transfer and its ability to function as a system of trust verification that’s capable of forming the backbone of technological infrastructure.

ETH’s ability to autonomously and reliably validate digital transactions through smart contracts contributed to its popularity among the early crypto community, as well as being supported more recently by technology giants like Microsoft and Intel. By January 2018, Ethereum had established its position as the second-largest cryptocurrency by market cap, trailing only Bitcoin by a margin that Goldman Sachs has predicted ETH could eventually manage to close.

Large market cap coins like Binance Coin, Solana, and Dogecoin mirrored Ethereum’s price surge over the last week of November, potentially indicating a decrease in the secondary influence of Bitcoin momentum, which fell by 0.50 percent.

A potential obstacle that may stand in the way of Ethereum’s price momentum (and the crypto industry as a whole’s price momentum) in December is the looming uncertainty of impending cryptocurrency legislation in India, with India’s Finance Minister Nirmala Sitharaman recently stating: “The risk that cryptocurrencies can lead to undesirable activities is being closely monitored.”

Ethereum 1-Year Price Chart: CoinMarketCap

12 Month Ethereum Price Prediction (2022)

With the Ethereum and Bitcoin price booming at the start of December 2020 (before their prices fell, which you can read about here), many experts and investors will be anticipating its value to track its growing market dominance, which has steadily increased throughout last year.

Exemplifying the volatility and unpredictability of its price relative to other financial assets, end-of-year Ethereum price predictions provided across a panel of 50 experts, established by Finder in October 2021, ranged from estimates as low as $3,1733 AUD to as high as $14,103 AUD.

According to Finder, Dr Iwa Salami, an associate professor at The University of East London, noted: “Ethereum has the advantage of being the first mover” and:

“Cheaper and faster blockchains are still not threatening competitors to Ethereum in this respect, which means Ethereum is likely to maintain its dominant position for some time to come.”

At the same time, some are making sure not to get carried away by ETH’s recent momentum, citing potential issues with its increasing fees and the growing threat of competition as other currencies gain steam. In the aforementioned Finder report, partner at Panxora Crypto, Gavin Smith, gave an Ethereum 2021 price prediction (for the close of 2021) of $4,231 AUD, opining:

“The costs have reached a point where most smart contract operations are now too expensive without integrating a level-two solution.”

Other smart contract blockchains are also coming out with better technology solutions that support a greater number of transactions at a lower cost (though they are not as battle-experienced as Ethereum, and could run into their own problems). This battle will impact Ethereum’s price predictions in the years to come.

5 Year Ethereum Price Prediction (2021 – 2026)

Over the longer term, some experts predict that Ethereum will be able to closely rival the price of Bitcoin. On the bold end of the prediction spectrum, hedge fund manager at BlockTower Capital Rahul Rai predicts that ETH has a chance of overtaking Bitcoin, which currently sits at around $57,000 USD ($80,407 AUD), at some point in 2022, Business Insider reports.

Popular AI-based forecast website WalletInvestor.com has previously forecasted Ethereum to be valued above $7,000 USD ($9,874 AUD) in 2023. In contrast, crypto trading platform Prime XBT has predicted that ETH will return to its current price in 2023 after its trajectory peaks in 2022.

A conservative estimate from Thomson Reuters Futurist Joseph Raczynski sets $12,000 USD ($16,927 AUD) as a forecast for 2025, according to Finder.

The mean figure drawn from the Finder expert panel’s predictions is an Ethereum’s price of $15,364 by 2025, and an Etheruem price prediction beyond $50,000 USD ($70,533 AUD) by 2030.

Ethereum all-time price graph (USD). Source: CoinMarketCap

Ethereum Price Prediction Conclusions

  • Ethereum’s future trajectory will depend on whether or not its competitors are able to challenge its prominence among investors and users of blockchain technology, and the degree to which ETH is able to establish itself as the backbone of the Web3 ecosystem.
  • Lagging transaction times and ‘gas’ fees that increase in line with growing usage are a threat to Ethereum’s leading position in the market, as competitors like Cardano are able to process an exponentially larger amount of transactions at a cheaper rate.
  • “The Merge” announced in recent weeks indicates that the Ethereum network may finally solve the problem of high gas fees by moving to a faster, more efficient network mechanism called Proof-of-Stake.
  • Ethereum is likely to benefit from the increasing levels of investment flowing into global digital assets, as the recognition of cryptocurrency’s legitimacy continues to expand.
  • Although the current instances of fiscal tightening from governments around the world can cause markets to tumble, Ethereum is positioned to weather the long-term storm better than most owing to its inherently valuable technological capabilities and its status as a market leader.
  • Provided that the cryptocurrency market remains stable enough for awareness and adoption to continue to grow, Ethereum is well-positioned as a potentially revolutionary technology and a possible challenger of Bitcoin, with its prominence likely to continue for the foreseeable future.

RISK STATEMENT

This article is of a general nature only, and is intended for solely informational purposes. This is not financial advice. Never invest more money than you can afford to lose into any crypto.

Read Next

328196