Ethereum's Technological Evolution

Since its launch in 2015, Ethereum has been a popular project. Between October 2017 and January 2018, during the bull run, its price grew over 360%. While there were a few existing DApps before that, the launch of CryptoKitties in November 2017 attracted a lot of new users to the network. 

However, the influx of new users had some negative consequences for Ethereum. The blockchain wasn’t able to process all transactions, and average fee costs rose as well. This same phenomenon happened around 2020 when another bull run saw the emergence of DeFi protocols. 

Developers started working on what would be known as Ethereum 2.0. This consisted of a series of upgrades to enhance the throughput of the network. In September 2022, Ethereum effectively switched from PoW to PoS. This lowered the price of transaction fees and also made the network more energy efficient.

This period also saw the launch of Layer 2 projects, DeFi DApps like AAVE, and competing blockchains, like Avalanche. You can compare AAVE vs AVAX to analyze the performance of DApps and other blockchains.

Market Performance and Trends

The price of ETH, aligned with the rest of the market, started growing around October 2023 and reached a peak around March 2024. However, it is far from its all-time high, reached in November 2021. 

There are many factors that influence the price of ETH. As a network of DApps, one of the main drivers of value is the popularity of applications built on Ethereum. For example, NFT marketplaces and video games were key for the growth during 2020 and 2021. The DeFi ecosystem, which continues to grow even now, also attracts new capital and users to the network, boosting the price. 

In the last few months, the launch of ETH ETFs has had a positive impact on the price. Although ETF investors don’t directly own the ETH coins, they get exposed to the price. In the end, the issuing company does buy the coin, increasing the demand for the asset.

ETH Price Prediction

The price of ETH is currently around $2,400, down 40% from $4,000, the highest price during this year. Historically, the last quarter of the year has been positive for the crypto market. For this reason, analysts predict the price will be close to $3,900 by year’s end. In the coming years, it’s likely to keep growing, and it may reach a new ATH in 2025. As developers implement new upgrades, the price will likely continue growing.

 

Year

Average price

2025

$5,379

2026

$7,661

2027

$10,345

2028

$12,245

Why Ethereum Could Be a Strong Long-Term Investment

Ethereum is one of the most solid projects in the ecosystem. This means that, in the long term, it will always tend to grow. Even if the price falls, pressured by external events, ETH always bounces back. Moreover, as new applications are built on the network, and new upgrades are implemented, the asset will be more attractive to new investors.

A key advice you’ll hear in any investment strategy is to diversify your portfolio. This means that, instead of betting all your money on one single asset, it’s best to spread your funds across different coins. Getting some ETH, while you still keep BTC and other valuable cryptocurrencies, will offer you plenty of benefits. In bullish trends, you’re exposed to more potential growth. Meanwhile, in bearish periods, you can reduce the loss, since not all assets tend to lose the same percentage.

Ethereum’s Future: A Smart Bet for Long-Term Investors?

In conclusion, Ethereum is an asset that will positively impact your portfolio, especially if you invest in it wisely. The benefit of investing long-term is that you don’t need to keep a daily pulse on the market. Instead, you can make a purchase, or regular purchases, and just let the coins sit and grow.