How high can Ethereum go in this market cycle? So far, Ethereum has had a parabolic 2021.
Now I make various articles, but I do love a nice price prediction now and then. But keep in mind that no one can time the market, and no one knows the actual price of Ethereum. But it’s always fascinating to look at the price-performance fundamentals and where the price is likely to settle based on history from time to time.
So in this article, we will look at the rationale for these price predictions, the barricades, and the bulk case for Ethereum. Price predictions for Ethereum and how high it can Ethereum go. And towards the end of the article, I’ll reveal how much Ethereum you need to have to see a significant return for the end of the year.
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Now we’re going to base this prediction on the stock-flow model. As it’s been one of the best ways to predict the price of crypto since the very start of cryptocurrency. So here’s the full price grab as well as the real Bitcoin price over the projected price. According to how far away they are from a halving event, there is also a color code for the pricing points.
So as you can see here, the pricing has done a fairly good job mapping out the model over the last nine years.
It also appears to be overpriced or underpriced at times, but it always returns to normal like some sort of magnetic force. So back in March of this year, Bitcoin aligned with the stock-to-flow model for the first time.
This occurred at a time when Bitcoin was trading at around 61,000 dollars since then. However, Bitcoin has continued to move away from the model’s projected price, and the situation has gone downward and sideways for the most part. But according to this model, Bitcoin will reach a six-figure price by the end of 2021, and that’s a 2x or roughly a 2.5 x, and in the past, we’ve accomplished a lot more in one or two months.
Price Predictions
So now let’s put that same model on Ethereum’s price. But first, we need to look at the history as that will give us the price projections to determine where Ethereum’s price will end up. For example, during the last bull run in November, Ethereum was at around 300 dollars, and it ended up at 1300 dollars. And that’s a forex, and that was in less than two months. So the whole market as a whole did a 4x.
Some all coins even did a 10x or 20x. But if we see Bitcoin do a 2x from here, which according to the stock to flow model puts it at 100,000 dollars and the previous high of Ethereum was 4,300 dollars, and we apply a 2x multiple to the high from 4,300 dollars, then that would put Ethereum at eight thousand six hundred dollars. And that is very doable in this market cycle since Bitcoin will be hitting one hundred thousand dollars.
With that being said, look at the yearly performance for Ethereum as it has been outperforming Bitcoin. And if we look at the history from Ethereum during the last full cycle of 2017, then Ethereum can easily do a 3x from its all-time highs putting the price at roughly twelve thousand dollars.
So then we can expect Ethereum’s price to be anywhere between ten thousand and fifteen thousand dollars. So then the stock-flow model is predicting that Bitcoin will hit one hundred thousand dollars, which that alone is pretty amazing, which means that we are going to see a lot more moves coming along, and if altcoins, for now, follow Bitcoin, some even beat Bitcoin’s trend. So then, we can also expect Ethereum to outperform Bitcoin, which will give Ethereum a price target of ten thousand to fifteen thousand dollars.
This price prediction might be a little different from other articles you have seen where they talk about Ethereum going to 25,000 dollars or even 35,000 dollars.
But we need to keep in mind that the market value of Ethereum, which is currently at 425 billion dollars with approximately 117 million coins in circulation, and payment processing companies like Visa and MasterCard. They have market caps of nearly 475 dollars and 341 billion.
Now even though we might not see a 35,000 dollar Ether by the end of this market cycle, we might see that in the next bull run that’s to come in the next three years. Because Ether supply will drop as the network’s scalability improves and the new economic structure of Ether takes place. Given that Ethereum 2.0 is expected to arrive at the end of the year or early 2022, we are going to experience a massive supply shock crisis for Ethereum only 18 months after Bitcoin’s halving.
In this case, if you’re like me and are thinking about investing in Ethereum for the long term, then the current price of Ethereum is extremely undervalued. The increased ether supply is expected to be deflationary in the long run, which will provide a 10x opportunity. Ether’s greater stock to flow ratio implies a multi-trillion market value at that level. And if we apply the stock to flow model again and apply the same historical principles to determine Ethereum’s price for the end of this current market cycle.
Then we can expect Ethereum to be between 25,000 to 35,000 by sometime in 2024, assuming a cautious 2 percent annual inflation rate and a 10x return on today’s Ethereum pricing.
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