Overview of Ethereum
Ethereum is a decentralized public blockchain network with an intelligent smart contract facility. This definition may suit many crypto projects that exist today. Still, Ethereum does not fit only into this because Ethereum is a home for digital money, global payments, and smart contracts. It can be considered a pillar of DeFi. Ethereum’s state-of-the-art technologies allow developers to create customized DeFi applications.
Ethereum is the largest cryptocurrency next to Bitcoin. Ethereum, compared to other crypto projects, has many use cases. It provides financial services such as lending and borrowing digital assets, Much more privacy to internet access. More private access to the internet means the user is allowed to use a dApp without providing all the personal information, Peer to peer network for the direct transaction of digital assets. It is censorship-resistant that no government or company can control. The Ethereum platform can be used to create and trade non-fungible tokens. Many crypto projects use Ethereum based network, and It also has decentralized autonomous organizations to set up online communities. Hence, Ethereum is an umbrella platform for decentralized finance and the digital economy.
Ethereum was introduced in 2013 by Vitalik Buterin. Ethereum blockchain launched in 2014 with smart contracts and dApps. He has proposed that blockchain has much more uses than finance. From inception, the Ethereum network used a PoW algorithm named Ethash, designed to prevent ASIC mining. Ethereum faced issues of security much time after its launch.
What is Ethereum (ETH)?
The native cryptocurrency of Ethereum is called Ether with a ticker symbol ETH. It is the second-largest cryptocurrency in the world, next to Bitcoin. The utility token fuels the Ethereum community, and it is used for payment of gas fees, governance, and other services of the Ethereum platform.
ETH is divisible up to 18 decimal, allowing investors to buy fractional ETH. Stakers will be incentivized using ETH Tokens. Moreover, it works on a peer-to-peer basis, and it is helpful to get stable coins.
Ethereum’s Competition
Crypto as a global ecosystem is accelerating with advanced technology solutions to solve real-time issues. Emerging products are independently working to contribute their best to the digital economy. The number of new crypto projects increased in the last two years compared to other years. This scenario has created stiff competition for Ethereum, and leading companies pose a significant threat to Ethereum’s market share.
- Cardano: Cardano was founded to solve the issues associated with Ethereum. The founder of Cardano was a co-founder of Ethereum. Ouroboros’ Proof of Stake consensus of Cardano provides high scalability and security to the platform compared to Ethereum’s PoW.
- Solana: It is characterized by high throughput and low transaction cost compared to Ethereum. The transaction handling capacity and immediate settlement have become a significant advantage for Solana to dominate the DeFi space.
- Polkadot: Polkadot’s parachains launched on the Polkadot ecosystem. This achievement escalates the scalability, interoperability, and efficiency of network operations. In addition to this, Polkadot uses Proof of Stake consensus, which consumes less energy than Ethereum’s Proof of Work Consensus.
- Terra: Terra uses PoS Tendermint, which is energy efficient. Terra’s stable coins couple the advantages of fiat currencies and the censorship resistance of BTC. All together, Terra offers fast and secure global payment of digital currency.
Apart from the above companies, Binance Smart Chain, NEAR, gives similar services with fewer fees and faster payment technologies. They can’t get into a one-to-one competition with Ethereum because Ethereum provides large-scale financial applications. A single project can’t beat it easily. However, they are together giving a warning to Ethereum. The market cap of these companies is increasing day by day, which provides tight competition for Ethereum.
Is Ethereum’s Market Share Under Threat from Alternative Layer-1s?
Ethereum outperformed in the last year, and they have been in the stages of the development of Ethereum 2.0. The Proof of Stake upgrade is also not yet completed, and it may take some time to complete. The delay can create rivals more opportunities in the DeFi space.
In expert opinion, 30% of Ethereum’s market share may be captured by competitors such as Avalanche, Terra, and Solana over the next year. These companies have grown to a considerable market share within a short period, indicating they can pull down Ethereum’s market share in the upcoming years.
Will Solana Overtake Ethereum as the Primary DeFi Platform?
Solana was cautiously higher in the last year, and the performance of Solana was remarked and escalated its market position. Crypto fanatics have started comparing Solana with Ethereum before investing.
Solana was introduced in 2020, which means Solana is a child compared to Ethereum. The technology and design and the use cases have given a pose to Ethereum capabilities. Increased throughput and enhanced smart contract capability became an added advantage, and Solana became a new choice for crypto enthusiasts along with Ethereum.
To clarify, Solana is one of the top competitors for Ethereum; they can capture some of Ethereum’s market share. Still, they cannot overcome Ethereum as the primary DeFi platform easily. It is a Herculean task for Solana to overtake Ethereum in DeFi space.
How will Ethereum 2.0 Change Things?
Ethereum 2.0 is a batch of interconnected upgrades with a mission to serve the community better. It is planned in different phases. The initial phase launched the Beacon chain in the network. It won’t change any working of Ethereum but laid a complete change plan of other steps and managed network validators registry. The objective of phase 1 is to implement shard chains and roll-up. Phase 2 is looking forward to implementing cross-shard interoperability and decentralized application development tools. Phase 1.5 is a bridge between the first phase and the second phase. This process is called docking. It will connect the Ethereum Mainnet to the Beacon chain. Phase 2 end is expected to hold an utterly functional Mainnet.
Which Issues will ETH 2.0 Successfully Resolve?
Ethereum expects to complete Ethereum 2.0 by the end of 2022. Once it finishes, Ethereum becomes more secure and scalable. In addition, Ethereum is expecting an increased transaction speed and reduction in high gas fees.
- Shard chain implementation in Phase 2 can split transaction data into 64 blockchains across the network. Data splitting can improve network throughput as well as scalability. Beacon chain+shard chain is anticipated to process the transactions simultaneously.
- Implementation of Proof-of-Stake can alter the existing validation mechanism and reduce energy consumption.
- The merging of the existing Ethereum Mainnet with the Beacon Chain will start a new era in Ethereum. Merging will enable stakes for the entire network and end intensive energy mining.
- It will create sufficient disk space and address poor UX issues associated with the existing system.
A shift from ETH.1 to ETH.2 can enable new features, improved staking and validating mechanism, economic-friendly network operations, increased throughput, and improved scalability. The shift will allow Ethereum holders a seamless experience in handling the platform.
Ethereum Roadmap
Ethereum’s white paper was released in 2013 and yellow paper in 2014. Ethereum was upgraded to Homestead in 2016, the next major version of the Ethereum platform. In 2016 ‘Stock.it’ developed DAO for Ethereum, and it is deployed in the network. In the same year, they introduced the ‘Tangerine Whistle fork’ and ‘Spurious Dragon fork’ to protect the network from service attacks.
Ethereum came up with a ‘Byzantium fork’ in 2017, is introduced specific cryptography methods and non-state changing calls to other contracts. Later in 2019, Ethereum came up with the ‘Constantinople fork’ and ‘Istanbul fork.’ This is allowed smart contracts to have more creative facilities and enabled Ethereum Zpay interoperability. At the end of 2019, Ethereum started working on ETH 2.0.
Staking deposit contract deployed on 2020 that entitled staking in the network subsequently. Beacon chain and Berlin upgrades are presented in the platform and began working towards ETH 2.0’s next stage; Shard chains will be entirely implemented in the network by 2023. The journey started in 2020 onwards. However, all execution will be live by 2023 only.
Latest News Updates About Ethereum (ETH)
Ethereum is planning for the merge as of now. The latest update from founders reveals that the Ethereum team is working behind the transfer of Proof of Work to Proof of stake. They have recently launched Kintsugi, a long-lived public testnet. This can drive developers to familiarise themselves with Ethereum in a post-merge context. All the current updates of Ethereum are related to its ETH 2.0 journey.
Ethereum Advances Blockchain Upgrades for 2022
London Hard Fork
London hard fork update was completed on Aug 2021, and it was the 11th upgrade that consisted of 5 improvement proposals.
EIP 1559: It will make the transactions more efficient by using a hybrid system of base fees and effectively reducing the transaction confirmation time.
EIP 3198: It strives to enhance smart contracts’ user experience and benefits.
EIP 3529: It will lessen the refunds in ETH and off-set the blocksize variances of EIP -1559
EIP 3541: Seamless deployment of new smart contracts
EIP 3554: It is expected to increase the difficulty of the mining process.
London hard fork introduced coin burning and anticipated to increase the value of Ethereum by reducing supply as its use extends.
Altair Upgrade
Altair upgrade was presented on October 27, 2021. It was the first Mainnet upgrade of the Beacon chain, and Ehereum’s price skyrocketed in the market after this. Altair upgrade will enhance client support for core consensus, crack validator incentives issues, and clean up the Beacon state incentive account. Hence, experts consider it an administrative upgrade.
ETH Price History
Historical data shows as of March 2020, Ethereum ETH became the second-largest cryptocurrency by market capitalization. Along with the 70 million pre-mined Ethereum tokens, 60 million were sold during its ICO in 2015. In June 2016, ETH’s price was trading around $10. Ethereum grew from this price level within a year and touched $100. But it underwent a significant sell-off at this point; prices have a breakdown to $100 in the same period. ETH has noticed massive volatility and moved sideways for an extended period. There was a round bottom formation in the daily chart during the same period. Later, the crypto market detected a surge in Ethereum price and market cap. So, it was the best investment opportunity to invest in ETH.
ETH again started its upward journey in the first week of January 2021, following price action took the price of Ethereum to $4400 in May 2021. There was a drop to $1743 again. After three months, prices have witnessed a long-term increase. In early November, prices spiked to a record high at $4874.
Technical Analysis of ETH
The cryptocurrency market has experienced a tumultuous period for the last two weeks of January 2022. Most of the tokens plunged more than 40% compared to their all-time high. Ethereum price today is trading at $2,764 with a market cap of $329,688,830,302. The all-time high of the coin is $4,891.70, which is on November 16, 2021. The current price is 43% less than its all-time high.
Ethereums price was continuously falling from its all-time, and it has made lower lows on the daily chart with colossal selling volume. For the past month, prices have fallen through a descending channel. It was a sharp fall for the past five trading sessions, and it almost fell to the price level from where it had started its upwards journey.
Technical analysis shows that ETH has already slipped from the support level of $3300. Next immediate support is placed at $2321. Any decline from this level is eyeing to $1729, and significant support is set at $1364. Investors may face complex decision-making. If coins plunge to this level. They cannot afford the losses. As of now, It’s trading in a risk zone as of now. Investors expect that Ethereum may pay back their losses.
On the opposite side, the immediate resistance level is placed at $3346, and If ETH is able to cross this level, it may test the resistance of $3889. There is a resistance zone noted around $4456, and significant resistance is placed at $4836 before tackling the all-time high.
Analyzing the major technical indicators, the Bollinger bands are squeezing, and prices have hit the middle band. MACD line is floating above the signal line, which is an upward trend indication. RSI is positioned at 43, which means still selling pressure exists in the coin.
Monitoring the exponential moving average, the ETH price is trading below its 20 EMA, 50 EMA, and 200 EMA. ADX displays a strong downward trend, and on-balance volume (OBV) is sinking.
To sum it up, all the technical indicators are negative to moderate, and candlesticks also show a mixed indication. The market cap and volume have fallen for the fourth consecutive day. There is a slight possibility of an uptrend as of now. So investors can wait for a good opportunity to enter into the coin.
Ethereum Price Predictions: 2022-2030
The cryptocurrency market encountered a difficult start to the week. Looking at the price history, Ethereum gave a 133% return last year. It was 31% for the previous six months and 27% loss for the past month. Ethereum has given good swing opportunities for traders. Ethereum price today reflects are moving down. What should investors do at this point? Should you buy, hold or sell? Let us have an exhaustive analysis of Ethereum future price prediction.
| Year | Maximum Price | Minimum Price |
| 2022 | $6537 | $3192 |
| 2023 | $10500 | $5690 |
| 2024 | $14100 | $8200 |
| 2025 | $18143 | $10400 |
| 2026 | $19000 | $12300 |
| 2027 | $23000 | $13400 |
| 2028 | $25600 | $14200 |
| 2029 | $27100 | $15100 |
| 2030 | $29000 | $16100 |
Ethereum Price Prediction 2022
Ethereum price predictions anticipate ETH will call $4000 within the first quarter of 2022, and beyond, it will reach $4500 within the first half of the year. The average price foreseen by the end of the year is $6000. If any significant price action occurs, it can take Ethereum to a maximum price of $6500.
Ethereum Forecast 2023
Ethereum ETH is expected to start at $6123. Within a month, it is envisioned to cross $6400. Ethereum price is foreknowing to reach $7500 within six months. Price predictions show volatility after this, and by the year-end, ETH may touch $9000. The maximum price expected by the year-end is $9458 and the minimum price expected in the year is $5897.
Ethereum Prediction 2024
ETH envisaged an opening of $9166 in 2024. Prices are expected to reach $10014 within the first quarter and $11217 within the second quarter. Ethereum price can reach up to $12087 by the year-end.
Ethereum Price Prediction 2025
Based on price predictions, ETH prophesies a start at $12219. Prices are constantly rising and anticipate reaching $13019 within three months. It will call $14036 by August 2025 and $15251 by the year-end. The maximum price predicted for the year is $18012 and the minimum price expected for the year is $10473.
Ethereum Price Prediction 2026
ETH price will begin at $15261 in 2026. By April 2026, it will cross $16100. Ethereum price is expected to hike to $16800 during the first half of the year. If the crypto market supports, it will fly to $18293 by year-end. The maximum price divined is $20000.
Ethereum Price Prediction 2027
Price predictions pointed out an onset at $18297 and may touch $19000 within a month. ETH is anticipated to touch $2016 by the end of the year.
Ethereum Forecast 2028
Ethereum price is expected to commence from $20120 in 2028. It may soar to $21070 within the first half of the year, and price predictions show a slow movement after this. By the year-end, it may reach $22300.
Ethereum Forecast 2029
Ethereum price predictions have anticipated a commencement at $22219 and may hike to $23879 within the first quarter. It may reach $24010 by the first half of the year, and ETH value is predicted to touch $25000 by the year-end.
Ethereum Price Prediction 2030
With more adoption, partnerships, and technical upgrades, the price of Ethereum would grow significantly; the maximum price of Ethereum may reach $28000 by the end of 2030. If everything goes well, we can expect an average ETH price will be around $26,500.
FAQs
Where can I buy Ethereum?
Ethereum is listed on almost all exchanges, such as Coinbase, WazirX, Binance, Kucoin, Upbitx, and many more.
Is ETH a good investment?
Fundamental analysis of the project and Expert opinions from wallet investors and other price prediction websites are bullish on the token. ETH has long-term earning potential so for the long term. The above article is for information purposes. Traders have to do their own research and take proper investment advice before investing in the coin.
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