Ethereum (ETH) is one of the largest cryptocurrencies in the market. It is also among the most used blockchain networks in the world. Launched in 2016, Ethereum has allowed for a large number of projects to be released to the cryptocurrency market.
Now, the main question many investors are asking is whether Etheruem could reach $3,000 in the near future. ETH’s all-time high was registered in January 2018 close to $1,420 and it allowed a large number of users to profit from it. Currently, as we move in a bull market, we could see $2,500 per ETH and a continuation of the trend towards $3,000.
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Disclaimer: this post should not be considered investment advice. This is only for educational purposes only. Never invest more than what you are able to lose and always ask for information to your professional financial advisors. We are not financial advisors.
Ethereum could definitely reach $3,000 in the future. However, this is just a possibility. We cannot be 100% sure this will happen. The crypto market is very volatile and it is not possible to predict what can happen with it.
As one of the largest virtual currencies, Ethereum has attracted a large number of investors. Lots of users are trading it, others instead are using it to participate in a wide range of activities, including the decentralized finance (DeFi) market that expanded over the last years.
With this in mind, users are searching for different ways to invest in ETH and speculate with its price. Bitcoin (BTC), for example, surpassed $40,000 a few weeks ago. This allowed BTC to double its previous all-time high.
Some analysts consider that ETH could not only reach $3,000 but move higher, double it as BTC did and surpass $3,000. Nevertheless, this is not financial advice. Virtual currencies are very volatile and we do not know what can happen in the future.
To understand whether Ethereum could surpass $3,000 we also need to have to look a the fundamentals behind this coin. The first thing to mention is that Ethereum is moving from a Proof-of-Work (PoW) consensus algorithm to Proof-of-Stake (PoS).
This would allow users to start staking ETH and earn rewards for their participation in the network. This could increase buying pressure for ETH and allow the price to move higher. There will be several investors trying to be part of the network, which can be done only by buying ETH and staking them.
Furthermore, the new issuance of ETH is also decreasing. According to VItalik Buterin, the new issuance of ETH could be reduced to 2 million ETH per year. This would represent an inflation rate below 2%, which is currently selected by governments as the “healthy” inflation for a country to grow.
With a lower issuance of ETH and an increased demand in the virtual currency, there could be buying pressure on ETH. This could definitely push prices higher in the future.
Additionally, XRP users that sold their coins during the massive sell-off experienced by this virtual currency, could also move their funds to ETH. XRP users could continue to flow towards ETH in the coming months if there is no regulatory clarity around the XRP virtual currency.
Finally, the DeFi market continues expanding. This is a very positive thing for Ethereum. More ETH could be locked in a wide range of DeFi projects that aim at offering advanced solutions to users in the crypto market.
As we mentioned before, the larger the number of coins that are locked (ETH 2.0 and DeFi finance), the more bullish it would be for ETH price. Furthermore, with increased demand from the community (XRP users now and ETH 2.0 for staking) it might be possible for Ethereum to reach $3,000 and continue moving higher.
Nevertheless, this is not investment advice. If a new bear market starts, it might be difficult for ETH to decouple from the entire crypto market. Thus, it is highly dependent on Bitcoin and how the largest virtual currency moves in the coming months as well. At the time of writing, ETH surpassed $2,000 and could eventually move towards $3k in the next few months.
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