Crypto is notoriously volatile, and Ethereum is no exception. Don't invest anything you can't afford to lose, be sure you're willing to keep your money invested for at least a few years, and prepare for more volatility in the near term. Also, it's wise to ensure that the rest of your portfolio is well diversified.
However, we also note that ethereum is extremely volatile. That means it experiences large price movements over short periods. Before you invest in ETH, you must understand the risks involved: you could lose all or a large portion of your investment. Never invest money that you cannot afford to lose.
However, experts believe that due to its unique blockchain and several use cases, Ethereum has a stable future and might even perform better than Bitcoin in future but is unlikely to overtake the price of Bitcoin.
High network and gas fees: Many users have expressed frustration with the high fees associated with using Ethereum. Multiple reviewers have reported that the network fees are extremely expensive, making it difficult to justify using the platform for smaller transactions.
Bitcoin is up about 80% for the year, while Ethereum is up about 60%. On the surface, it would appear that Bitcoin is clearly the superior investment in 2023.
Conclusion: Yes, Ethereum Can Reach $100K
The main reasons behind this are the increasing use of Ethereum in the world of digital bonds, real estate, and government and central bank usage of the blockchain network on a state level.
Ethereum Is a Risk Asset. Like all cryptocurrencies, Ethereum is a high-risk investment.
Some risks
The first risk is the risk of centralization and governance. Now that Ethereum is moving towards proof-of-stake, the validators of transactions will no longer be the miners but the stakers of Ethereum. At the time of writing, 60% of the stake is in hands of four big parties.
Investing in Ethereum is risky, but it could potentially be lucrative. Unlike Bitcoin or Litecoin, companies are really using Ethereum as a building block - something more akin to diamonds than gold. As an investor, this is a potential win.
It's important to note here that Ethereum losing the entirety of its value is highly unlikely, and the same goes for other popular coins like Bitcoin. We've seen many smaller coins drop to zero, especially those with a very short history in the market.
Reasons Why Ethereum Price Drops
Market fluctuations, regulatory concerns, and competition from other cryptocurrencies are just a few reasons. However, it's essential to remember that price volatility is a natural part of the crypto market, and drops as these have occurred before.
Assuming these numbers, to be a millionaire you will need: Worst case scenario: 39 ETH or $82,000 at current prices. Conservative Model: 29 ETH or $61,355 at current prices. Aggressive Model: 18 ETH or $38,243 at current prices.
Ether (ETH), the native token on the blockchain network Ethereum and the second-largest cryptocurrency by market cap, is a risky and volatile investment. It should only be considered if you have a high risk tolerance, are in a strong financial position and can afford to lose whatever you invest in it.
Whether Ethereum will experience similar returns again is uncertain. But since its price is two and a half times lower than its 2021 peak, investing in it at a bargain price is worth considering. Even if it doesn't see momentous returns, approaching its all-time high again could bring significant yield.
This year, Ether prices have been depressed ever since the Federal Reserve announced its intention to institute a series of aggressive interest rate hikes in order to combat inflation. High interest rates dissuade consumers from investing in more risky assets, which includes crypto.
When a transaction fails on the Ethereum network, you are still charged. Transactions fail when there isn't enough gas to pay for a transaction, or when a smart contract rejects a transaction.
Cryptocurrency may be a virtual currency, but its value can never go negative. In short: The value of a cryptocurrency cannot be worth less than $0.
Despite its success, Ethereum has been dogged by criticism that its transaction speeds are too slow, and that its computing process is an ecological catastrophe. The environmental criticism, in particular, threatens to overshadow the achievements that have made Ethereum the pulse of the crypto ecosystem.
Regardless of when an investor picked up ETH, historically, it's been possible to turn a profit simply by waiting, making ETH a great long-term crypto investment. Investors that bought into the asset during its 2018 highs, would've had to wait until at least 2021 just to break even.
ETH's indicators suggest that the coin has indeed bottomed out and that it's in the middle of a strong rally that has enough momentum to continue.
PricePrediction maintained a bullish long-term ethereum forecast that projected ETH could be worth around $2,851.56 in 2023, $4,224.26 in 2024 and $6,442.41 in 2025, based on its artificial intelligence-assisted technical analysis.
This price is expected to rise in the on-coming year (2022), with quite a few experts in finance and cryptocurrency believing that ether will overtake bitcoin. Here are a few reasons as to why people believe that Ethereum will overtake bitcoin in the coming future.
Ethereum Supply is at a current level of 120.21M, down from 120.21M yesterday and up from 119.38M one year ago. This is a change of -0.00% from yesterday and 0.69% from one year ago.
However, regardless of ETH becoming the number one crypto, a report by VanEck said that the token could reach $50,000 in 2030. In the first six months of 2023, ETH has risen by around 45%, which is quite impressive.