Ethereum’s price has been plummeting since late 2021. While $5000 seemed like an easy target for ETH last year, that is not the case now. Even the much-anticipated Merge was unable to give a boost to the world’s second-largest cryptocurrency in the persistently bearish market.
Does that mean it is too late to buy Ethereum?
In this article, we discuss the performance history and long-term price prediction of Ethereum, followed by a short list of cryptocurrencies that can outperform ETH. Let’s get started.
Is it Too Late to Buy Ethereum – An Overview
Ethereum’s cascade of price falls in 2022 have left investors wondering if a recovery is possible for the coin in the near future. The series of broader market collapses doesn’t help the case. What began as an overstayed crypto winter turned into a bloodbath in May after the LUNA collapse. Despite the Merge on the horizon, the coin gave a lackluster performance in the months that followed, as a result.
The Merge had little effect on the price of Ethereum amid the wide market slowdown. The FTX fall aggravated the situation, and the crypto is struggling to get back on its feet. The threats of hostile crypto regulations and global recession are likely to limit the funds channeled to the industry for the rest of this year.
Despite the series of downturns suggesting otherwise, Ethereum still has a long way to go. The coin is not undergoing price corrections. It is below its intrinsic value now, with huge growth potential in the coming years. It is one of the best long-term projects to invest in 2022.
Here is a quick look at the Ethereum price prediction from 2023 to 2030.
| End of 2023 | $3450 |
| End of 2024 | $5800 |
| End of 2025 | $6300 |
| End of 2030 | $7500 |
Ethereum Price History: Key Milestones
- 2014 – Ethereum launched an ICO to raise early-stage development funds. The coin was available for just around $0.311 at this stage.
- 2017 – Ethereum began to capture the attention of the crypto community. The developments going on in the network triggered an explosion in 2017, which took its value from $8.17 to $820.
- 2018 – The crypto explosion of 2017 drew traction to the industry. As more investors became aware of the crypto asset’s potential returns, the ETH price took off to $1270.
- 2019 – Ethereum lost most of its value and went down to $175 at one point.
- 2020 to 2021 – The pandemic brought a new user base to cryptocurrencies and the market blew, gaining pace in late 2021. ETH hit its all-time high of $4,891.70.
- Late 2021 to present – A drawn-out crypto winter took over the market. Ethereum followed the trend, undergoing multiple falls throughout the year. The ETH price stands at $1,183.61 at the time of writing.
How Has Ethereum Performed in 2022?
After hitting an all-time high of $4,891.70 on 16 Nov 2021, Ethereum has been victim to a dramatic fall that leaves it at $1,180.75 in a year. The crypto winter that followed the autumn bull run of 2021 shunted the growth of most cryptocurrencies, and Ethereum was no exception.
A cascade of price dumps took Ethereum to $2406 by 23 Jan 2022. That was disheartening for the community, which was hoping for a $5000 worth Ethereum in 2022. Soon, the coin got back on its feet and started climbing up the charts amid the enthusiasm around the Ethereum Merge. It reached $3521 on 5 Apr 2022. But that was it. The coin couldn’t sustain the engagement or the value.
Ethereum 1-year price history, 25 Nov 2022, CoinMarketCap
Listed below are the four factors that took a toll on the Ethereum price in 2022.
LUNA collapse
The Luna collapse was one of the biggest tragedies to hit the crypto market this year. It not only took down most cryptocurrencies with it, but also tarnished the image of the industry. Stablecoins, which have long been considered a safe haven, lost their reputation after the de-pegging of UST. High-cap stablecoins, including USDT, struggled to survive the turmoil in the days that followed.
LUNC all-time price history, 25 Nov 2022, CoinMarketCap
Ethereum was not spared either. The coin, which was at $2700 on 7 May 2022, went on a downward spiral to hit $1960 on 13 May 2022. After a small recovery, it followed a cascade of price dips. On 19 June 2022, it slipped down the $1000 mark and found a bottom at $993.
June to mid-August was kinder on Ethereum. It slowly climbed the charts during this period, hitting $1982 on 14 Aug 2022. While many speculated that it would soon break past the $2000 barrier, that wasn’t the case. The coin has been unable to maintain its momentum and losing value ever since.
Ethereum 1-year price history, 25 Nov 2022, CoinMarketCap
The Merge
The Merge failed to make a large-scale impact on the price of Ethereum, despite its relevance in the project’s journey. ETH climbed close to $2000 in mid-August in anticipation of The Merge in September, but slowly descended the charts. As the broader market turned bearish, Ethereum had to follow suit.
Ethereum price from July to September, 25 Nov 2022, CoinMarketCap
The Merge marked the network’s transition from Proof-of-Work consensus to Proof-of-Stake consensus. It improves the efficiency of the Ethereum blockchain. Instead of using miners to validate and create new blocks, the new mechanism requires validators to stake ETH now. The elimination of mining equipment that consumes an unfairly large share of computing power slashes Ethereum’s energy consumption by 99.988%. The carbon footprint of the blockchain, on the other hand, is down by approximately 99.992 % (from 11,016,000 to 870 tonnes CO2e).
There are more benefits that come with The Merge. The PoS consensus mechanism will also refine the economics of the Ethereum blockchain. That means the number of Ethereum that goes into circulation every year will decrease, in turn, supporting its value.
The fall of FTX
Another major blow to the crypto market was the fall of FTX, one of the largest crypto exchanges in the world. FTX came crashing down after a report that throws light on the potential leverage and solvency concerns involving Alameda Research went live. It reveals that the quantitative trading firm, co-founded by Bankman-Fried, held a significant amount of FTT.
Sam Bankman-Fried was the then CEO of FTX. The news that Alameda’s investment foundation was in FTT, instead of fiat currencies or other cryptocurrencies, didn’t go well with the community. Soon, all companies linked to Bankman-Fried were under the watch.
FTT 1-month price history, 24 Nov 2022, source: CoinMarketCap
Despite Bankman-Fried’s continued reassurance and efforts, he failed to win the confidence of the community. Binance stepped in and announced to buy FTX (non-US). It backed out later, leaving FTX to its fate. On 11 Nov. 2022, the company filed for Chapter 11 bankruptcy protection and Bankman-Fried resigned from his position as the CEO of FTX.
The broader market collapse that began in early November is mellowing down. But the crypto market has shrunk, going below the $1 Trillion mark to reach $832.27B, at the time of writing. Ethereum was also not spared from the catastrophe. The coin, which was at $1550 on 8 Nov 2022, crashed down to $1100 on 10 Nov 2022. It soon found resistance, but the slowdown is likely to persist for a few weeks.
Ethereum 1-month price history, 25 Nov 2022, CoinMarketCap
Global macroeconomics
This year has not been great for the global economy either. The persistent inflation, looming recession, and energy crisis caused by the Russia-Ukraine war have inevitably slowed down the crypto market. With little savings in hand, people are putting more thought into their investments. The highly volatile behavior of cryptocurrencies this year hasn’t helped the market win their confidence.
Threats of regulation
Nations and regulators are slowly getting acquainted with the idea of cryptocurrencies. Since 2020, there have been more initiatives to integrate cryptocurrencies into the regulated payment system. As expected, it takes time for regulators to understand the industry and what it has to offer. But their prejudice and misconceptions stand in the way of the mass adoption of crypto.
The environmental impact of proof-of-work blockchains like Ethereum and Bitcoin was a cause of concern for a long time. Ethereum has relieved itself from the charge after The Merge, however.
But Hostile regulatory moves continue to hinder the growth of the industry. The alternative financial system put forward by cryptocurrencies is seen as a threat by regulators. The frequent hacks and scams in the market don’t help the case, either. Until international regulations come into action, mainstream adoption of cryptocurrencies remains a distant dream. The lack of clarity about crypto policies prevents projects from growing and expanding.
While the FTX fall, LUNA collapse, and series of hacks and scams have been tragic, investors are hoping it would urge regulators to implement strong crypto policies.
The Road Ahead for Ethereum
Ethereum’s position as the most established blockchain in the world remains uncontested. It powers a large ecosystem of applications across DeFi, NFT, and gaming, to name just a few. While Cardano, Polkadot, and Solana emerged as Ethereum-killers in the past, the network’s move to PoS secures it against the competition. Solana’s nosedive in 2022 will also bring more projects to Ethereum in the coming months.
As the broader market recovers from the drawn-out crypto winter, so will Ethereum. But we can’t rule out chances of more dips and crashes, given the highly volatile nature of the market. Although the PoS system is going uninterrupted now, it could incur glitches in the future. Or, new validators could try to exploit the network. The collapse of DeFi applications, which predominantly rely on Ethereum, is another potential threat. NFTs are not safe either. Scams or rug pulls in the NFT space can also tarnish the reputation of Ethereum.
So, is Ethereum a good investment? Anything can happen in the crypto space. Ethereum’s long-term vision and consistent efforts towards reviving the blockchain space raise no questions of credibility, however. The network and the cryptocurrency are expected to grow in the coming years, despite minor setbacks.
Updated roadmap diagram! pic.twitter.com/MT9BKgYcJH
— vitalik.eth (@VitalikButerin) November 4, 2022
Ethereum Price Prediction 2023-2030
| End of 2023 | By the first half of 2023, the crypto market will be back on its feet, climbing small highs. The pace is expected to pick in the second half as the Ethereum roadmap crosses new milestones. The coin has the potential to reach $3450 at the end of the year, despite the temporary dips. |
| End of 2024 | Basic crypto regulations are expected to have fallen into place by 2024, which would pave a smooth path for projects like Ethereum. We expect the coin to cross $5800 toward the end of the year. |
| End of 2025 | With blockchain coming to the mainstream and clear-cut regulations in action, Ethereum won’t have a hard time crossing $6300 in 2025. |
| End of 2030 | 2025 to 2030 would be a period of mainstream adoption for Ethereum. What is mostly confined to financial services and gaming would penetrate healthcare, education, and real estate. While $10,000 is a long shot, $7500 seems doable for Ethereum in eight years. |
Is it Too Late to Buy Ethereum – Conclusion
No. It’s not too late to buy Ethereum. The crypto asset still has a large room for growth, factoring in the continuous innovation going on in the network. Ethereum continues to be at the forefront of the blockchain revolution, especially with The Merge.
As crypto regulations fall into place, the mass adoption of Ethereum will gain pace. It won’t be limited to financial services, entertainment, and gaming. We will see advanced Ethereum applications across the healthcare, education, and government sectors in the coming years.
That is not to say the cryptocurrency will be immune to broader market collapses and glitches. Despite the inevitable setbacks ahead, the future looks bright for Ethereum.
Crypto Assets to Buy Along with Ethereum
As the second-largest cryptocurrency in the world, Ethereum is one of the most credible crypto assets. It has also long been considered a blue-chip crypto. If you’re looking for the safest, long-term crypto investment, Ethereum is the best choice.
But Ethereum can’t guarantee you 10X-20X returns in a year. Ever imagined how much you would have earned had you invested in Ethereum early? Promising presale tokens offer one of the best ways to earn large returns from the crypto market. Being in their early stages of development, they also come with huge risks. So, make sure you analyze the white paper, roadmap, tokenomics, team credibility, and the market relevance of the project before making a decision.
To give you a head start on your hunt, here are some early-stage projects that are performing well amid the bear market.
1. Silks – Thoroughbred Horse Racing in the Metaverse
Silks is the world’s first derivative sports game to bring the thrill of thoroughbred horse racing to the metaverse. Thoroughbred horse racing is a large market where each thoroughbred sells for thousands of dollars. The Silks metaverse mirrors the real-world thoroughbred economy and racehorses.
Silks Thoroughbred Racehorses are considered one of the best NFTs to buy this year. The unique digital collectibles track the lineage, physical traits, development, productivity, and life events of their IRL counterparts on the blockchain. Given that thoroughbred yearlings sell for a fortune every year ahead of their first race, the Silks 2022 Genesis Yearling Sale is currently trending in the NFT community.
Every time an IRL thoroughbred wins a race or breeds offspring, the corresponding Silks Horse accrues rewards for the holders. You need to hold a Silks Genesis Avatar to participate in the Silks 2022 Genesis Yearling Sale.
Genesis Silks Avatars
While a major share of Genesis Silks Avatars is now sold out, you may find one on the official website for a cheap price if you’re lucky. In the event they’re sold out, you can find one on secondary markets like OpenSea at a higher price. When buying secondhand, make sure the Avatar hasn’t exhausted its 2022 Genesis Yearlings Sale Mint Pass.
2. IMPT – Green Crypto with Scope for Mass Adoption
IMPT is one of the most trending green crypto projects. The project is currently running the second stage of its presale after witnessing a massive influx of investors from both the crypto and non-crypto sides of the world. IMPT’s appeal lies in its advanced blockchain vision to revive the carbon market.
It makes this possible through an NFT carbon marketplace, a shopping store, and a social media platform. Here’s a quick overview of how it works:
- IMPT marketplace — A place to buy, sell, and retire carbon credits without going through multiple intermediaries. The platform lists carbon credits as NFTs, thus cutting down the chances of double spending and fraud.
- IMPT shopping platform — An online shopping application that allows you to earn IMPT tokens while purchasing from eco-conscious brands. You can exchange the IMPT tokens for carbon credits on the shopping app. IMPT has already secured partnerships with leading global brands on the mission.
- IMPT social platform — One of the most pioneering applications dedicated to climate action in recent times. The platform tracks users’ carbon offsetting performance using a custom-made scoring system, thus gamifying the initiative.
Financial analysts predict a 10X – 15X price rise for IMPT by the first half of 2023. As the products roll out, it can go as high as 25X by the end of the year.
3. RobotEra – Metaverse Builder Game Set in the Future
RobotEra is a metaverse builder game in Taro, a planet reigned by robots. The play-to-earn project takes inspiration from The Sandbox. You will find the tools and resources you need to build infrastructure for the growing civilization on Taro from the platform. That is, coding skill is not a prerequisite to playing the game.
There will be many ways to earn rewards from the game. The first of these is to join quests. The more you explore the metaverse, the higher your chances of collecting rewards. In addition to that, you can participate in construction, mining, energy collection, and production.
If the project unfolds as planned, the low technical barriers to RobotEra will help it onboard traditional builder game fans next year. That, in turn, widens the profitability of TARO tokens, now in the presale stage. Make sure you buy them early, as the price rises with each new stage of the presale.
4. Dash 2 Trade – Crypto Analytics and Intelligence Platform
D2T is another interesting crypto presale token that has caught the attention of the community. It is underpinned by an analytics and intelligence platform that offers tools and insights designed to help users hone their digital asset portfolios.
Dash 2 Trade dashboard
This includes advanced trading signals, predictions, social analysis, a custom-made scoring system for presales and ICOs, independent technical indicators, auto trading API, risk profiler, presale listing alerts, and on-chain analytics, to name just a few.
The Dash 2 Trade dashboard focuses on giving relevant data points that can have a real impact on users’ profitability, rather than overwhelming metrics and jargon. And that makes all the difference.
5. Calvaria – NFT Battle Card Game Set in the Afterlife
If you’re a fan of popular blockchain battle card games like Gods Unchained and Splinterlands, you would find Calvaria irresistible. The game explores the creative possibilities of the afterlife with an engaging narrative and storyline. The advanced gameplay is designed to capture both crypto and non-crypto users. This is further ensured by offering the game in free-to-play and play-to-earn versions.
The lower entry barrier of Calvaria gives it a strong edge in the crowded NFT space. The ecosystem also comes with:
- A gamified staking platform with multiple pools.
- A scholarship system where you can rent your decks, build a team of players, become a team manager, and more.
- An In-game store where you can buy or sell Calvaria assets.
- A DAO
Calvaria is closing in on the fifth stage of the presale, after witnessing a large influx of buyers. It is one of the best future cryptocurrencies to buy in 2022.
FAQs
- Is it too late to buy Ethereum in 2022?
No, it is not too late to buy Ethereum in 2022. The long series of price falls in 2022 have led to an undervalued Ethereum. ETH will recover its value in the coming years. That doesn’t rule out volatility or future price crashes, however.
- How to buy Ethereum?
You can buy Ethereum from any credible centralized or decentralized cryptocurrency exchange of your choice. Make sure you store them in a self-custodial wallet to eliminate the risks of hack and mismanagement.
- When will Ethereum hit $5000?
Ethereum is likely to cross $5000 in 2024 unless a major crash slows down its progress.
- Is it still possible to mine Ethereum?
Since the ETH Merge, Ethereum is not using the proof-of-work consensus mechanism. In other words, mining has been switched off in the Ethereum network. Instead, you can participate in the network’s proof-of-stake system to earn staking rewards.
Image by Peter Patel from Pixabay