THE value of Ethereum has increased in the past year to become the second largest cryptocurrency after Bitcoin.
We reveal price predictions for 2021 – and whether Ethereum could reach $10,000.
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The cryptocurrency, which was released in 2015, was founded by eight people, one of which is 27-year-old Vitalik Buterin.
As well as being used as a cryptocurrency, developers can also build applications and run smart contracts on Ethereum.
Keen investors should be aware that it’s not a guaranteed way to make money and you can lose all the cash you put in.
In other words, don’t invest more than you can afford to lose or into something you don’t understand.
Cryptocurrencies are also especially volatile, and their values can crash at little to no notice.
There’s scant regulation for crypto firms, so you’ll likely be without protection if things go wrong.
What’s the Ethereum price?
The price of Ethereum (ETH) is currently sitting at $3,047.28 – down by 6% over the past 24 hours, according to CoinMarketCap.
It’s also down since its all-time high of $4,168.7 on May 11.
However, it’s up by from $730.37 on January 1, meaning it’s rocketed by around 417% since the beginning of the year.
Before Ethereum started rising this year, its previous all-time high was on January 14 in 2018 when it hit $1.366.77.
Ethereum price predictions for 2021
How the price of Ethereum will change in future is impossible to know for certain, but experts and investors have still made predictions.
According to a panel of 42 cryptocurrency experts by comparison site Finder, Ethereum could be worth $4,596 by the end of 2021.
It could then soar above $10,000 later on to hit $17,810 by the end of 2025 and $71,763 by the end of 2030.
5 risks of crypto investments
BELOW we round up five risks of investing in cryptocurrencies.
- Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
- Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
- Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
- Marketing materials: Firms may overstate the returns of products or understate the risks involved.
However, some experts were more optimistic and Martin Fröhler, chief executive of Morpher, sees Ethereum topping $10,000 by this December.
CoinFlip founder Daniel Polotsky added: “Ethereum’s price largely follows Bitcoin’s halving cycles, although that relationship may begin to decouple as time goes on, and as Ethereum continues to develop use cases that Bitcoin cannot achieve.
“Then, its price may grow at a faster rate than Bitcoin’s.”
Meanwhile, CoinPriceForecast expects Ethereum to hit $4,758 by the end of 2021 and $10,198 by the middle of 2025.
And WalletInvestor has a one-year forecast of $5,430.50 and a five-year forecast of $13,961.80.
Make sure you take these predictions with a pinch of salt though, as they’re nowhere near guaranteed.
The cryptocurrency market is affected by a number of factors, including regulatory crackdowns and comments by high-profile individuals.
In other words, Ethereum could also drop in value, meaning you’ll lose money.
We explain whether Ethereum could overtake Bitcoin in future.
It comes as the values of Bitcoin and Ethereum fell in May after China announced a further crackdown on cryptocurrencies.
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This post first appeared on thesun.co.uk
