Education By  Yuliia Rokytska
Newbie 1832 15 Oct 2022

Ethereum price analysis

By  Yuliia Rokytska 1832 15 Oct 2022
Photo - Ethereum price analysis

Ethereum is the second most popular cryptocurrency after Bitcoin, the leader among altcoins, developed by programmer Vitalik Buterin in 2015. Many experts and analytical firms predict a bright future for the price of ETH.

Before we run through Ethereum price prediction for 2025, let’s take a look at the historical data of price changes and list the main points that allow us to evaluate the altcoin in the long term.

Ether has increased in price from $0.311 at its 2015 launch to around $4,800 at the end of 2021. That time ETH showed magnificent 200% growth of its 2017 high. At the beginning of 2022, the initial price of Ethereum was $3,722.59. Overall, this year ETH rose by 400% before the crypto-winter. 

2022 has become a problematic year for the crypto market, but anyway the crypto community expects strong performance from Ethereum. For example, Mike McGlone, senior commodity analyst at Bloomberg Intelligence, suggested in his latest report that the altcoin could reach $4,000-$4,500 by the end of the year.

Moreover, ETH's market share of trade volume may achieve parity with Bitcoin's in 2022, as published by Kaiko in August. Company provides data for crypto market analysis. ETH outperformed Bitcoin in July due to strong inflows in spot and derivative markets. In August (for the first time in history!) the open interest (OI) of Deribit Ethereum options exceeded the OI of Bitcoin options by 32% ($5.6 billion vs. $4.6 billion).

This is largely due to The Merge, the transition of the Ethereum blockchain to the Proof-of-Stake consensus algorithm. Buterin calls it a stunning moment for the ecosystem. Edul Patel, CEO of Mudrex, believes that The Merge is a significant step forward bringing Ethereum into the mainstream. And all this is due to fast and energy-efficient PoS transactions that will promote high demand for tokens. 

Ethereum 2.0 also suggests that the project’s tokenomics will become more deflationary: the number of altcoins on the market will decrease. This may lead to price increase in the long run. 

Ethereum price prediction for 2025

According to Changelly, the minimum expected price of ETH in 2025 is $7,336.62, while the maximum possible price is $8,984.84. Gov.capital gives predictions that ETH will reach $6,000-10,000 in 3 years.

The Priceprediction.net platform provides lower forecasts. According to its data, the maximum price of the altcoin will be $5,124 in 2025. Coin Price Forecast predicts the lowest ETH price of $2,534 in 2025.

It should be taken into consideration that positive forecasts are based on the successful launch of Ethereum 2.0 and the solution to the problem of the high cost of gas in the network.

Many people believe that Ethereum will always have the advantage because of its innovation despite the emergence of greener, faster and less expensive blockchains. The title of the first altcoin ensures long-term success despite competition. It is believed that after The Merge, Ethereum will be used much more often for the development of decentralized apps.