Ethereum Price Forecast Long Term Outlook 2025 Prediction
The Ethereum price chart showed that what goes up, must come down. After every bull run, the crypto market has entered a multi-year bear market. Since the inception of Bitcoin in 2009, we had three major bull runs: 2013, 2017 and 2021. Were expecting a blow-off top in the next year, then the coins will reach new ATHs.
After the crypto market reaches the top, history has shown that the price makes lower lows for the subsequent few years. Sure, retracements happen along the way, and investors get caught wrong-footed thinking its a pump, but those moves are part of a bear market.
So what will happen to the ETH price in a bear market? Its difficult to determine the exact year that Ethereum will bottom in the coming bear market, but 2025 seems likely to be a year of the bear in crypto.
The crypto bear market history revealed that the price reaches several support levels, breaking through most of them. For Ethereum, it means going back down to the $1,400 region . If investors think thats agony, they should brace for further downside.
In crypto bear markets, most coins crash by 90%. If Ethereum reaches a new ATH of $6,000, it will drop to $600. That might seem impossible, but ETH lost 94% value in March 2020 after its 2018 ATH.
A crypto winter can be brutal, so buying Ethereum at the top means losing most of its value. Then, you have to wait several years for the price to reach that level again.
Is There A Way To Learn About Crypto Without Investing In The Currencies Themselves
Buying tokens is the most straightforward approach to experimenting with cryptocurrencies. But other opportunities exist for exploring the crypto world while potentially protecting your money from seesawing swings.
Here are a handful of alternatives:
Buy shares of crypto companies. Many companies in the crypto space are publicly traded. Buying shares of Coinbase Global or PayPal Holdings rather than of the coin itself allows you to benefit from the business proceeds of these companies, which are in part generated by crypto. You can also buy shares of companies that make crypto-related hardware, such as Nvidia and AMD.
Invest in crypto ETFs or derivatives.Specialized exchange-traded funds, or ETFs, are available for crypto. ETFs are baskets of securities, such as stocks, commodities and bonds, that follow an index or sector, in this case, crypto. Futures and options are also available for some crypto products, though these advanced types of investment vehicles come with their risks.
Get a job in crypto.LinkedIn, Indeed and Monster list thousands of jobs in crypto. Whether you’ve got a traditional finance background or you’re a software engineer, there’s a boom in the blockchain labor market. There’s also Cryptocurrency Jobs, a job board dedicated to blockchain careers.
What Is The Verdict
Just as the adoption of web3 technologies increased exponentially last year, so will they increase in 2022. At present, however, a new definition of HODLing is needed. Newcomers to the cryptocurrency space should not consider the recent price of cryptocurrency that occurred during the holidays as the end of the road. It has happened before, and it will happen again.
Cryptocurrencies dont go anywhere no matter what the skeptics and opponents say or think. Cryptocurrency prices will bottom out before testing the last all-time high of $ 60,000 up. Experienced investors and members of the cryptocurrency industry expect prices to cross the $ 60,000 mark within the next quarter.
So hold on folks, were on a wild ride!
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What The $19511 Mark Means For Bitcoin
While many are monitoring if bitcoin would slip below the $20,000 mark, experts say a more noteworthy milestone would be $19,511.
This is the high the worlds leading cryptocurrency hit in its last bull cycle in 2017.
Bitcoins value has never fallen below its prior cycle peaks in its entire 12 years of trading, Vetle Lunde and Jaran Mellerud at Arcane Research, pointed out.
A potential visit below this level could lead to a lot of hodlers capitulating and a wind-down of leverage, making this a very important support level to pay attention to onwards, they said, according to Bloomberg.
Ethereum Price Prediction 2022
Predicting the price of any asset is difficult, especially for one in a volatile market such as cryptocurrency. Knowing volatility is likely in crypto can be good news for investors after witnessing their portfolio drop by more than 60%.
Thats what Ethereum did after reaching its ATH in November 2021. The price has been setting new lows for the last six months, hovering around $1,900 in May 2022. But more bad news is on the horizon. Weve seen crypto prices retest their previous ATHs. For Ethereum, that means a further drop to around $1,400.
Its at that level that the price will find strong support. Investors shouldnt be surprised to see that level hold, since it has for over a year. If that level holds, our Ethereum price prediction 2022 will bounce up to $4,000, where it will encounter strong resistance, by the end of the year.
The Ethereum team has been working to transition the platform to second-generation updates. Transitioning the platform to Ethereum 2.0 could make Ethereum more affordable to mint. Users will be able to develop products at lower service fees than the current exorbitant prices.
Its going to take more than sentiment for the price to break through the $4,000 region. Ethereum has faced competition from platforms offering similar features but with lower fees.
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How To Buy Cryptocurrency
If youre new to investing in cryptocurrency, weve put together a guide to walk you through the process, including how to choose a platform, what fees are involved and alternatives to buying coins directly. Read our How to Buy Cryptocurrency guide here.
*Correct at time of writing
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Web3 Technologies Will Become A Mainstream
We can already see that cryptocurrencies and their related technologies are part of popular culture. Everyone wants to understand what cryptocurrencies are and how they work. With the advent of new technologies such as metaverse ecosystems, artificial intelligence, the Internet of Things , the Internet of Conduct , and others will need cryptocurrencies and their related technologies to improve the way they work. Examples where this is already happening are in gaming systems where Non-Fungible Tokens are used as digital collectibles.
As utility increases, more use cases will abound, and older technologies across industries and sectors will be ceded to network 3 technologies.
New blockchains and innovations will take over the space as developers flock to the network 3 industry not only because of what cryptocurrencies are, but because of what they can do.
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What Are The Risks Of Investing In Crypto
Before investing in crypto, you should know there’s almost no protection for crypto investors. And since this virtual currency is extremely volatile and driven by hype, that’s a problem. It’s easy to get caught up in tweets, TikToks and YouTube videos touting the latest coin — but the adrenaline rush of a market spike can easily be washed away with a dramatic crash.
You should be on the lookout for crypto scams. One often-used scheme is a pump and dump, in which scammers encourage people to buy a certain token, causing its value to rise. When it does, the scammers sell out, often pushing the price down for everyone else. These scams are prominent, and they took in more than $2.8 billion in crypto in 2021.
From the US government’s current policy perspective, you’re on your own. At this time, the government provides no deposit protection for crypto as it does for bank accounts. This may change following Biden’s March executive order, which directed government agencies to investigate the risks and potential benefits of digital assets.
Despite all the hype, scams, periodic crashes — and persistent risks — in this market, Cesare Fracassi, who runs the Blockchain Initiative at the University of Texas, Austin, still thinks crypto has a viable future.
How Risky Is Cryptocurrency
People invest at their own risk and cryptocurrencies are not regulated by British financial authorities.
All crypto investments are risky, but meme coins like Shiba Inu are particularly volatile, and you should be prepared to lose everything you invest.
The Financial Conduct Authority warned in January: Investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors money.
If consumers invest in these types of product, they should be prepared to lose all their money.
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What Is Blockchain Technology
You’ve likely heard some of the following terms if you’ve paid attention to the world of finance: Cryptocurrency, Blockchain, Bitcoin, Bitcoin Cash, and Ethereum. But what do they mean? And why is cryptocurrency suddenly so hot?
First, we’ll explain the blockchain basics.
As society become increasingly digital, financial services providers are looking to offer customers the same services to which they’re accustomed, but in a more efficient, secure, and cost effective way.
Enter blockchain technology.
The origins of blockchain are a bit nebulous. A person or group of people known by the pseudonym Satoshi Nakomoto invented and released the tech in 2009 as a way to digitally and anonymously send payments between two parties without needing a third party to verify the transaction. It was initially designed to facilitate, authorize, and log the transfer of bitcoins and other cryptocurrencies.
Who Are The Winners And Losers
At one level, the answer is simple: the winners are people who sold their cryptocurrency holdings in early April, and the losers are the people who they sold them to. Its a common enough occurrence in the sector that theres even a rallying cry for the ones left standing when the music stops: HODL an implicit promise that the boom times will come round again and only those who dont panic and sell at the bottom will make a profit in the next phase of the cycle.
But there are distinctions. Those who held blue-chip cryptocurrencies such as bitcoin and ethereum have only lost about half their value from the peak, while those who bought shitcoins low-effort projects where almost everyone involved acknowledges that the goal is simply to buy low, sell high, and leave someone else picking up the pieces have lost a lot more. Similarly, those who managed to cash out into one of the stablecoins that survived the turmoil are in almost as good a position as those who managed to turn their crypto into cash.
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Why Is Cryptocurrency Struggling
The general mood around cryptocurrencies has cooled.
Investors appear to be moving away from cryptocurrency and towards less risky investments in the face of global inflation.
The crash is also linked to the coin terraUSD collapsing after losing its peg to the dollar, which has also all but wiped out Luna, its support coin.
Changpeng Zhao, chief executive officer of crypto exchange Binance, tweeted on Sunday: We have witnessed the rapid decline of a major project, which sent ripples across the industry, but also a new found resiliency in the market that did not exist during the last market downswing.
A further piece of bad news last week was Coinbase, the largest crypto exchange in the US, posting net losses of $430m , far worse than analysts were expecting, causing its share price to fall sharply.
Coinbase cited a trend of both lower crypto asset prices and volatility that began in late 2021, but was quick to point out that it does not expect these conditions to be permanent.
The news raised questions about whether the market has reached an expected cooling-off period previously dubbed a crypto winter or a more permanent chill, perhaps a crypto ice age.
Simon Peters, crypto market analyst at trading platform eToro, said: The concern now for cryptoasset investors is when the slide will end.
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The I Newsletter Cut Through The Noise
It comes after many cryptocurrencies enjoyed record highs at moments throughout 2021, with one Bitcoin token reaching a price of £50,546.71 recently before significant dips.
Tesla CEO Elon Musk announced on Twitter the company was making a u-turn on its policy to accept the crypto over environmental concerns in relation to Bitcoins mining process.
Its impact was far reaching with other cryptocurrencies Ethereum, Binance Coin, Dogecoin, XRP and Litecoin among the worst affected.
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Demand Still Dominates The Crypt Markets
Many factors point to the growing demand that exists within the web3 industry. The first of these is the dominance of Bitcoin. As Bitcoin continues to dominate the industry, the prices of cryptocurrencies will certainly rise exponentially. It will happen because web3 adoption is still a problem. Governments do not yet understand online technologies and the innovations they offer. The industry is bigger than the internet at its inception.
People in villages in Africa and other underdeveloped places place a premium on online technologies. So how much web3 technologies?
Crypto Crash Origins: Terras Collapse
Lets rewind to January 2022, when the non-profit Luna Foundation Guard was created to establish a reserve to ensure UST maintains its dollar peg. Fast forward to May 7 and LFG had amassed over 80,000 BTC and other cryptos, including BNB, AVAX, USDT, USDC, UST and LUNA in its warchest.
When UST depegged on 9 May, bitcoin came under pressure as LFG sold its BTC reserves to support USTs dollar peg. UST holders, who were once drawn to Terras passive income protocol, Anchor , for its 20% interest rate on deposits, started withdrawing their UST funds in a panicky exit from Terra’s ecosystem.
Terras native token, LUNA, which was used as a balancing coin to maintain USTs dollar peg via a network of arbitrageurs, plunged from about $64 on 9 May to $0.0001961 by 16 May.
By the end of it all, when LFGs bitcoin reserves were unsuccessful in saving the UST peg, Terras LUNA crashed and the Terra community decided to abandon its algo-stablecoin to fork out, starting a new chain.
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An End To Crypto Shadow Banking
Much of the recent concern around crypto centers on the idea that the industry is a hive of shadow banking banking activities undertaken by under- or unregulated entities, rather than an insured and tightly regulated financial institution.
The bottom line is that companies operating in this way forego safeguards like federal deposit insurance, which can protect investors and ensure a baseline level of liquidity even when markets are stressed.
Those safeguards have the added benefit of building confidence in the overall financial system: reassuring the public that the value of money is stable and their funds will be available when they need to withdraw them. But confidence in crypto has so far rested largely on sheer enthusiasm, rather than the knowledge that the system has built-in protections.
One of the foundational mythologies of crypto is that youre going to have this private money and finance that is unregulated and yet still secure, because of the technological workaround, Mehrsa Baradaran, a professor at the University of California, Irvine, School of Law and author of The Color of Money and How the Other Half Banks.
Yet Celsius decision to freeze withdrawals was a response to a classic bank run, as people rushed to pull their funds and because Celsius is a crypto lender, there was no federal deposit insurance. The companys collapse may be a harbinger of things to come.
What Investors Can Do To Prepare
The crypto market has crashed before, and it will likely crash again so its important to be ready. Cryptocurrencies are notoriously volatile and risky, so investors can see market swings of more than 50% in a matter of months and as much as 15% price gains within 24 hours.
In moments of extreme volatility and uncertainty in the crypto market, here are things you can do to protect your finances:
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Crypto Has Crashed Can It Bounce Back
Plummeting prices and lost life savings confirmed for many that the blockchain dream was too good to be true and it may now struggle to hit past highs
Even if you dont live and breathe cryptocurrency, youve probably noticed some turmoil in the sector. Eye-catching headlines about missing apes and collapsing stablecoins are indicative of the chaos, but whats really going on?
What New Regulation Could Mean For Investors
Recent proposed legislation could make it easier for the IRS to find cases of tax evasion when it comes to crypto, though investors should already keep records of any capital gains or losses on their crypto assets. But the new rules may also make it easier for investors to properly report crypto transactions.
This is because if the bill passes, exchanges will have to issue 1099-B tax forms with cost basis information to investors, Shehan Chandrasekera, CPA, head of tax strategy at CoinTracker.io, a crypto tax software company, recently told NextAdvisor. This will significantly reduce the crypto tax filing burden.
Regulatory announcements can also affect the price of cryptocurrency in already volatile markets. Market volatility is why investing experts recommend keeping any cryptocurrency investments to less than 5% of your total portfolio and never invest anything youre not OK with losing.
Ultimately, many experts believe regulation is a good thing for the industry. Sensible regulation is a win for everyone, says Ben Weiss, CEO and cofounder of CoinFlip, a cryptocurrency buying platform and crypto ATM network. It gives people more confidence in crypto, but I think its something we have to take our time on and we have to get it right.
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