Ethereum refers to the platform developed by Vitalik Buterin.
The crypto currency used within this platform is called Ether .
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Here , we will explain the trend of Ethereum price movements and the outlook for the future .
Bitcoin adjustments began in mid-April 2021, and many cryptocurrencies, including Bitcoin, fell sharply .
However, in contrast to Bitcoin, which is declining, it has shown a move to rise in Ethereum .
This is an example of how Ethereum is getting a lot of attention.
In this article, I will explain in depth “Why Ethereum is attracting attention” and “Why prices will rise more than now “ , so please read it to the end.
Ethereum hit a new high on May 10, 2021, but after dropping to half the high in July, it gradually recovered in August-September.
However, the price has experienced a slight decline since September 5, 2021, and as of October 6, it is about $4000.
It gradually declined from the tightening of regulations on the handling of crypto currencies in China on May 19 and Mr. Elon Musk’s remarks on May 13, and reached a temporary bottom price due to the ban on crypto currency mining in China in late June. rice field.
After that, it rebounded once, but it could not renew the latest high, so it continued to decline, but in August it is on a recovery trend due to the influence of the major update “London”.
[2015-2021] Ethereum price movements so far
Ethereum is an open source blockchain platform that was officially released in 2015, although its prototype was already born in 2013 .
Since its release in 2015, the market capitalization as of October 6, 2021 is about 46 trillion yen, second only to Bitcoin.
Nowadays, many crypto currencies have appeared, but there is no doubt that it is a service that is comparable to Bitcoin in terms of market capitalization alone .History of major price movements
- Marked $ 0.8 shortly after release
- From the operation of Byzantium to the upward trend
- Record highs in 2018
- Crash at the 2018 G20 Summit
- Recovered by EIP (Ethereum Kaizen)
- High prices again from 2020 to 2021
Now, let’s take a closer look at past price movements.
Marked $ 0.8 shortly after release
Ether was released to the Ethereum development test environment, Ropsten, in 2015, but it was actually pre-released before that.
Also, the test environment was released before it was released to the public.
Ropsten is famous as one of the test nets widely used for the development of crypto currencies, and although Ether could be delivered in this environment, mining could not be performed yet and Ether trading could not be performed .
Then, with the Frontier Update , Ethereum was finally released to the general Internet.
At this stage, it was possible to mine, transfer funds between addresses, create contracts, and send transactions, but it was not recorded on the blockchain.
By not recording on the blockchain with high tamper resistance, if a bug occurs, it is possible to rewind before the bug, and the operation was in the form of a test stage where the developer fixes the bug.
Among them, it marked $ 0.8 immediately after its release.
In September 2017, Byzantium went live on schedule.
Source: TradingView offer chart
Byzantium is the name of Ethereum’s hard fork. A hard fork is a rule change of the basic part of cryptocurrency.
Although price movements were expected at a major change point due to Byzantium, the price did not rise when looking at the trend immediately after.
However, in November 2017, 1ETH will rise to over $400 .
In addition, it was a time when prices were rising relatively, including other crypto currencies .
Along with this, the price has risen further.
1 It exceeded the $500 level in late January, and its momentum will not decline even in December.
The value will increase at a stretch, exceeding $800 in mid-December and $900 yen in late December .
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Record highs in 2018
Source: TradingView offer chart
Even in 2018, the upward trend will not change.
In January 2018, 1ETH will skyrocket to $1600.
Meanwhile, the momentum gradually began to fade, and it plummeted to the $1,100 yen level .
However, this has fallen into a situation where many crypto currencies, including Ethereum, have risen to record highs but have turned down .
Partly because of this, investors also ridiculed it as a crypto currency bubble .
Crash at the 2018 G20 Summit
Cryptocurrency regulation was discussed at the G20 Summit in March 2018 to catch up as the downward trend continues .
This is due to the fact that cryptocurrencies are becoming a wonder, the importance of making international rules is being called for, and the time when cryptocurrencies at the national level were being sought, Ethereum and others The wind on the crypto currency has become stronger .
As a result, the market price of the entire cryptocurrency market will continue to decline .
In the case of Ethereum, it temporarily dropped to the $400 yen level at 1 ETH in April.
Simply what was also $1,600 up to one year before the value of the order of 25% is not no longer only.
Recovered by EIP (Ethereum Kaizen)
Ethereum wasn’t messing around with this.
An Ethereum developer conference was held on April 20, 2018, announcing that new code was ready for a change in Ethereum’s consensus algorithm.
EIP (Ethereum improvement plan) 1011 called Hybrid Casper FFG (Friendly Finality Gadget) was shown, and the approval method called PoW, which requires a lot of resources for certification work, was abandoned .
Plans have been undertaken to move to a hybrid PoW / PoS system that contains an algorithm called PoS that risks losing assets if fraudulent .
As a result, we will shift to a more environmentally friendly method called Minting, unlike the conventional mining method that consumes a lot of energy.
This transition plan is named Casper and research will continue.
This was a V-shaped recovery, with the market being honestly evaluated.
From 2020, the price will be high again, but the historic crash
In 2019, Ethereum blockchain’s daily payments increased to about $ 2.5 billion , surpassing Bitcoin for the first time.
After that, the price will continue to rise steadily and will continue to rise in 2020 .
It was expected that the trend would continue in 2021, but it fell to a record level from the beginning of the year to January 11 .
This is believed to be due to the monitoring and tightening of regulations on crypto assets by British authorities .
Since November 2020, it has continued to rise exceptionally, and the reaction to the fall was very large, with Ethereum falling by about 14%.
However, on a weekly basis, it keeps a positive tone , showing a solid place.
The highest price will be updated in May 2021, but it will be half of the highest price in July.
After that, the price rose significantly and reached a record high in May 2021 .
The price continued to rise with a clear upward trend, and as of May 4, 2021, it was around $3,600.
In mid-May, the price of Ethereum also fell due to the negative news such as the influence of Elon Musk, the tightening of regulations in each country, and the ban on Bitcoin mining in China, and the fall of the entire cryptocurrency.
Prices will rise again from around August 2021
Ethereum has fallen to about half of its highest price, but prices have begun to rise again around the end of July 2021.
Then, in September 2021, it exceeded $4,000 and even showed a move to approach the highest price at one point.
After that, it experienced a slight decline, and as of October 6, it is trading at about $3900.
There are many positive news such as VISA, an international credit card brand, decided to adopt USDC issued on the Ethereum blockchain and the Brazilian securities authority approved the Ethereum ETF, and it will be attracting attention along with Bitcoin in the future. There is no doubt that it is a crypto currency.
If you don’t own Ethereum yet, it will definitely be a currency that will continue to be news, so please consider investing .
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Leverage trading, which allows you to aim for profits in both rising and falling prices, is effective in highly volatile cryptocurrency (cryptographic asset) markets.
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Events that affect the future outlook for Ethereum
Now that we understand the past price movements of Ethereum, we are wondering what the outlook is for the future.
The points that affect the price fluctuations of Ethereum are summarized below.
Points that affect the price of Ethereum
Price fluctuations linked to Bitcoin price movements
Improvement of convenience due to progress of development and practical application
Ethereum’s expectations due to the growth of DeFi
Price fluctuations due to the impact of the corona disaster
Ethereum 2.0 update
The above points are very important points to know the price fluctuation of Ethereum, so let’s understand it firmly.
Price fluctuations due to Bitcoin price movements
Ethereum is a crypto currency that has a different mechanism from Bitcoin, but due to the nature of altcoin, the price will be caught by Bitcoin.
It is easy to imagine that the price moves in proportion to the price movement of Bitcoin.
If Bitcoin goes up, Ethereum will go up, and if Bitcoin goes down, Ethereum will go down.
As this situation continues, Bitcoin price increases will be important for further Ethereum price increases.
Bitcoin also reached 7 million yen in April 2021, and Ethereum has also updated its high price accordingly, so it would have been a nice price movement for physical holders.
However, despite the fact that Bitcoin Minance has fallen by 50% since mid-April 2021 and Bitcoin has fallen due to a large inflow of funds into Altcoin, Ethereum has also shown a new price movement to renew the high price. rice field.
Ethereum has also fallen sharply since the decline in the entire cryptocurrency market that began in late May.
After that, the price recovered in response to the positive news peculiar to Ethereum such as the approval of the Ethereum ETF by the Brazilian securities authorities, and as of October 2021, it is trading at about $3,900.
If you analyze this price movement, it can be judged that the interlocking of Bitcoin is low and Ethereum is showing its own price movement, so it is dangerous to analyze only the price of Bitcoin.
Impact of progress in development and commercialization
Smart contracts are an indispensable theme in talking about Ethereum’s 2021.
A smart contract is a unique technology developed for flexible contracts.
It is an epoch-making technology that allows you to conclude a fair contract without a third party.
Blockchain is a good match for smart contracts because it is tamper-proof.
The following genres are expected to be particularly useful for smart contracts.
Areas where smart contracts are expected
Real estate sale
market place
gambling
Finance
Implementation is already progressing in the financial field, so I will explain in detail next based on actual examples.
Ethereum prices soar in line with DeFi market growth
“DeFi” is an indispensable topic when talking about Ethereum.
By implementing smart contracts, which is one of the important functions of Ethereum, in the financial field, we have realized decentralized finance without an administrator.
As a result, anyone can easily lend and borrow money, which has contributed to greatly increasing the liquidity of cryptocurrencies around the world.
Specific example of DeFi
Uniswap
Sushiswap
Compound
The above is a typical DEX (Distributed Exchange), but with the development of these, the value of Ethereum used as a base has greatly improved.
Uniswap’s Governance Token, Uni, has recorded a sharp rise in prices and can be said to be the currency that created the field of DeFi stocks.
Today, Raydium, Solana, and even DeFi offered by exchanges are expanding, giving users a variety of options.
DeFi is an area that has influenced the rise of the cryptocurrency market, as users may be able to operate at interest rates of 100% or more per year.
Corona’s impact on financial markets
From 2020 to 2021, money is flowing to assets such as crypto currencies one after another due to the influence of corona.
Underpinning this situation is indefinite monetary easing by governments.
As a result of the government’s initiative to spread a large amount of money to the market from 2020, the market will not crash in Corona, but the money will flow into the market, resulting in cryptocurrencies, stocks, and real estate. Updated the highest price one after another.
Simply put, money is flowing into stocks, bonds, gold, and cryptocurrencies because the money that floods the market cannot be consumed for entertainment by the corona.
Update to Ethereum 2.0
Ethereum (ETH) began Phase 0 of the “Ethereum 2.0” update on December 1, 2020.
The major change in this update is the change in the consensus algorithm.
Currently, an algorithm called Pow (Proof of Work) is adopted, but when the final update Serenity is completed, the transition to the algorithm called PoS (Proof of Stake) will be completed.
It’s a pretty useful update, but it’s a delicate matter whether it will be completed in 2021 due to the ongoing postponement.
However, once the serenity is complete, it will be big positive news, so let’s continue to follow the information on Ethereum.
Also, in late September, it was announced that the first upgrade of Ethereum 2.0, “Altair”, will be implemented on the mainnet on October 27, 2021.
This is the first upgrade of the Ethereum 2.0 network in Phase 0 and is in the spotlight for future developments.
[2021] Future outlook and forecast for Ethereum
The main points of the future outlook for Ethereum are as follows.
I will explain each in detail.
Solid backed up by the Ethereum Business Alliance (EEA)
When you hear the word cryptocurrency, it may seem that only some investors know it, but Ethereum is backed by a large company called the Enterprise Ethereum Alliance (commonly known as the EEA).
Members of the EEA are companies that work together to leverage and disseminate Ethereum’s technology.
More than 500 companies are already members of the EEA, and there are many well-known companies such as Microsoft, Toyota, and KDDI.
Partly because of this, Ethereum is highly trusted worldwide.
It is expected that this generous backup will continue to make steady progress in the future.
Evolution with major updates
Ethereum has been updating from a medium- to long-term perspective immediately after its release.
Currently, we are approaching the phase where the final step, the mining method, is changing from PoW to PoS.
This is expected to have the effect of significantly reducing network maintenance costs.
In addition, a mechanism called Sharding, which approves blocks by group, is expected to significantly improve scalability.
It is quite possible that the completion of this update will further increase the demand for Ethereum (ETH).
If you are looking forward to the future trends of Ether, please consider purchasing.
Ethereum ETF Approval
Ethereum ETFs are also a big indicator in predicting Ethereum price fluctuations.
For the first time in Canada, Ethereum ETFs were approved on April 17, and a total of four Ethereum ETFs will already be listed.
This is expected to trigger individual investors who have not invested in cryptocurrencies to purchase Ethereum, so it can be expected to greatly contribute to the price increase of Ethereum.
In addition, Bitcoin ETFs are currently being reviewed in the United States, but considering the situation in which they are being approved one after another in Canada, it is highly likely that Bitcoin ETFs will eventually be approved in the United States as well.
The next possible approval of Bitcoin ETFs may be the approval of Ethereum ETFs in the United States.
In that case, it is expected that the transaction volume will increase more than now, so let’s check the status of Ethereum ETFs one by one.
Ethereum future price forecast
Ethereum is a crypto currency that is attracting attention from many people, but it is doubtful how far it will grow after hitting the highest price on May 3, 2021.
Here, we will thoroughly explain the future price of Ethereum.
- Please note that price forecasts do not guarantee future prices.
Ethereum price forecast by the end of 2021
The background to the price increase in April 2021 is related to the announcement by the European Investment Bank (EIB) that it is considering issuing receivables on Ethereum.
Attempts to issue securities on the blockchain have been considered in various countries, but the market has reacted at once when the investment bank announced that it would consider issuing bonds.
It is quite possible that other investment banks will take this opportunity to carry out similar attempts, and it is quite possible that Ethereum prices will rise further.
If you look at the chart, you can see that a strong uptrend has continued to occur since January 2021 and that the bullish uptrend has been maintained.
Compared to January 2021, the price as of April 2021 has already grown more than four times, and if the pace is maintained as it is, it may exceed $4,000 by the end of 2021. ..
In fact, price increases such as lower gas prices and Ethereum updates are being prepared one after another, and further increases this year are expected.
Ethereum price forecast after 2022
The rise in Ethereum prices in 2021 was supported by the development of new decentralized applications such as “DeFi” and “”.
Unmanaged decentralized finance is used by retail investors around the world as a new form of asset management.
The transaction amount on DeFi, which was actually developed based on Ethereum, has increased one after another, and the price of Ethereum (ETH) used on the platform has also been caught by it and recorded an increase.
If DeFi and NFT continue to develop as they are, the use of Ethereum will increase further, so there is a possibility that they will be traded at a price higher than the 2021 price in the future.
In fact, Ryan Watkins, an analyst at crypto asset analysis company Mesari, suggested that Ethereum could be overtaken by Bitcoin in the future by introducing a mechanism to burn it by updating. ..
In fact, the price of Bitcoin is over 6 million yen at the beginning of May 2021, so it is unlikely that Ethereum will immediately overtake the price of Bitcoin, but in the long run it is now It seems that there is a possibility of aiming for 1 million yen from the price of.
When to buy Ethereum?
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If you’re thinking about buying Ethereum, it’s time to update.
As mentioned earlier, it tends to rise with every update.
In addition, if it proceeds as planned, there is a high possibility that an update will be made by 2021, and we can imagine a scenario in which the value will increase further in the future.
In addition, the use of Ethereum-based currencies in real life, such as the use of USDC stablecoins offered on Ethereum for VISA payments, will also increase the value of the original Ethereum.
Further price increases are possible as non-VISA payment services likewise adopt Ethereum-based currencies.
If you have high expectations for Ethereum in the future, let’s invest in cryptocurrencies while preparing Ethereum now.
Will Ethereum not fall in the future?
In the case of crypto currencies, if you think that you have shown a big rise, you can think of a big crash.
It is on the rise now (around September 2021), but of course we do not know when it will fall.
Ethereum could well fall
If you are thinking of investing in Ethereum, please consider risk hedging while investing.
Investing all your property in Ethereum and plunging will result in the loss of most of your property.
Since investment is basically diversified, please practice a low-risk investment method such as dividing it into other crypto currencies.
Will Ethereum not fall in the future?
In the case of crypto currencies, if you think that you have shown a big rise, you can think of a big crash.
It is on the rise now (around September 2021), but of course we do not know when it will fall.
Ethereum could well fall
If you are thinking of investing in Ethereum, please consider risk hedging while investing.
Investing all your property in Ethereum and plunging will result in the loss of most of your property.
Since investment is basically diversified, please practice a low-risk investment method such as dividing it into other crypto currencies.
Future summary of Ethereum
Most of Ethereum’s future is basically expected to continue its upward trend.
On the other hand, it is also true that there are not a few elements of anxiety.
Save the points introduced in this article and buy Ethereum at the right time.
Also, if you want to invest in Ethereum, we recommend using BINANCE.
