After several UPs and DOWNs of the cryptocurrency market at the end of 2017, we see now a more stable and rising market so it’s time for several eth price predictions for 2018.
What is Ethereum
At its simplest, Ethereum is an open software platform based on blockchain technology that enables developers to build and deploy decentralized applications.
The vision is that Ethereum will allow the exact same performance to individuals everywhere around the world, letting them compete to supply services in addition to this infrastructure.
In a nutshell: Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference.
If you want to learn more about Ethereum check our guide: What is Ethereum.
The price of a single Ether is so volatile that it can lose 25% of its value in one day, only to regain it in the next. But there was a lot of volatility in the last few weeks with Ethereum going to as low as $550 and back to $770.
At the moment of writing, the price is at $892.90 and has grown steadily for the last couple of days, recovering from the holiday season. However lost the 2nd place of capitalization on CoinMarketCap and is now on 3rd position, after Ripple. You mare read our Ripple Price Predictions for 2018 here.
Top Ether price predictions for 2018
1. Ether price should reach $1000 by the end of 2018
According to the website Investing Haven, the price of an Ether should reach $1000, if not by 2018 then at least by 2020.
The site’s research team bases their forecast on three fundamental factors:
a) Supply statistics
The supply of Ether keeps on growing, but we will soon reach a point, probably in one or two years, where new coins will be equally created against the number of coins that go out of circulation.
Which means that the developers in charge of Ethereum will make sure that the number of circulating coins stays constant.
So for long-term forecasting, the supply of Ether is not a very important indicator; supply is certainly relevant in the short term but our forecasting timeframe has a long-term horizon.
b) Ether application demand statistics
The usage of Ether in decentralized applications is the real intrinsic value of Ethereum and it is an important indicator of its price.
Ethereum is playing a major role in applications like predictive analysis, decentralized market-places, cross-border payment services, digital signature in transactions, digital rights management, crowdfunding, and many more.
One of the problems Ether solves is offering Smart Contracts, as we explained in our Ethereum guide.
According to InvestingHeaven.com It is hard to calculate the demand and future usage. The finance sector is where Ethereum offers major value. That sector has a huge potential. From that perspective, it is really fair to say that Ethereum’s usage in decentralized blockchain applications will go up 20 to 30 fold over the next 5 to 7 years, considering this value an safe, understatement.
c) Ether investment demand
The other demand aspect is investment-driven demand. Right now, Ethereum is closed to the public. One can buy Ether as an investment only with access through a wallet.
Driven by the hype and increasing demand several online brokers have expanded their offering by providing leveraged cryptocurrencies trading. As the trading volume grows with time, it signals a wider recognition of Ethereum and other cryptocurrencies as worthy assets to trade and invests in.
it really fair to conclude that an Ethereum price forecast of $1000 will be achieved before 2020, which is a fivefold increase in today’s price level.
2. Ether price may reach $5000 by the end of 2018
Nick Cannon, owner of EthereumPrice.org is doing several predictions for 2018 regarding cryptocurrency market and the most notable is his bet of $5000 per Ethereum coin at the end of 2018.
2017 saw $4bn raised in initial coin offerings, a market cap increase from $17bn to $640bn and the launch of a Bitcoin futures market. The world is waking up to crypto, and over the next 12 months, we will continue to witness the largest wealth transfer in modern history.
Nick says that predicting prices is one way to look foolish but he simply can’t help himself when it comes to Ethereum. The market is going to mature over the next 12 months with – hopefully – scaling solutions near or at launch as well as Ethereum futures contracts and ETFs traded on major US exchanges.
Blockchain.info’s CEO also believes that in 2018, central banks will start to stock up on crypto and Joseph Lubin’s positive outlook on Ethereum vs Regulation (in my opinion crypto’s single greatest risk as an asset class) inspires some confidence.
Ethereum price at the end of 2018? $5,000.
3 Ethereurm own struggles
After this two optimistic analysis, we should also note that Ether, the cryptocurrency still has some major hurdles to overcome before we can say that it is here to stay.
First of all, it is obvious that Ripple is connected to the crypto-currency market and it’s not immune to its shakes. Banning of ICOs or exchanges in different countries around the globe, or the increase of SCAMs in the cryptocurrency can lower the trust of its members that may withdraw the funds to the old cash.
Bitcoin still rules the cryptocurrency market, being the entrance gate for many users and as we seen when Bitcoin doesn’t feel well, most of the other cryptos are turning red.
When we are talking about scalability, our primary concern is whether the increased number of users will adversely affect the transaction time or not. Simply put, when more people use the technology, there are more transactions up for registering and putting down in the ledger.
Ether might have several differences to Bitcoin, yet it still runs on blockchain technology. This means that the same problems, that all current blockchain technologies face, plague it too, mainly scalability.
3.3 Losing exposure
Another issue with Ether is the possibility of cloning the technology. After all, any company can start its own blockchain based cryptocurrency tomorrow.
The only thing conferring value on any currency is the consensus of the community using said currency.
Besides the different technology, Ethereum got noticed as being Bitcoin’s closest competitor. Just as we wrote at the beginning of this article, Ethereum just lost the 2nd place in favor of Ripple by market capitalization.
If we analyze the charts further we will see there are some other players that have solid growth in 2018 like Stellar or IOTA while Etereum has a much slower growth.
4. Own analysis: Ether at $2000
Ethereum’s smart contract technology makes corporations very interested in its real-world applications. The Enterprise Ethereum Alliance with the explicit objective of facilitating and fostering the growth of the Ether consists of more than 86 firms, including JP Morgan and Microsoft. The endorsement of Ether by such heavy hitters only goes to show the amount of potential in this technology.
The Ethereum price has already risen more than 50 times in 2017 alone. If we take into account all the said above I think its safe to say that Ethereum has a lot of potential to grow in 2018 and it is considered a much safer cryptocurrency that most of the newcomers that took the cryptomarket by storm. So even that will grow slower than other coins you should consider it in your portfolio.
How to make money with Ether
As we predicted, there is a good chance that Ethereum price will increase over the time and there are several ways you could profit from that. There are two main choices: 1) to acquire Ether and sell it later for profit 2) to trade Ether, without actually owning through a broker like eToro.
How to buy Ether
If you want to actually own Ether you need first to open an Ether wallet. The safest option is having a hardware wallet like Ledger. If you don’t want to spend 70 euros on that you can always use a desktop wallet. Another option is to use a web wallet which is less secure but the fastest way to use and store your Ether. My favorite is the good, old BlockChain.info which supports now BitCoin, Bitcoin Cash and of course, Ether.
One nice feature is the exchange integration of ShapeShift which allows you to easily convert through these crypto coins inside your wallet. There are several crypto-currency exchangers that can sell you, Ether for Bitcoin, LiteCoin or plain old Cash. Just to name a few: CoinBase, Binance, Bittrex, Kraken, Changelly.
After you get your Ether, make sure you store it safely and watch the price evolution and sell it for cash or another cryptocurrency when you’re happy with the profit.
How to trade Ether
If you don’t want to actually own Ether you can still make money from its price evolution by trading it using a broker like eToro or Plus500. You need to open an account with a broker, fund it and then purchase Ether and sell the position when you’re comfortable with your return. Our favorite broker is eToro.com
The optimists believe that Ether should experience a positive increase in a coming couple of years, letting it pass Bitcoin on the way. Nevertheless, space is fraught with problems that don’t have an easy fix. And some skeptics worry about what these problems could mean for the cryptocurrency world.
Naturally, making Ethereum price predictions for 2018 is not an easy feat. And any forecast is liable to overlook a thing or two. Please share your opinions with us in the comments below, and feel free to ask any questions you might have.