By
Steve Muchoki
April 26th, 2024
The predictions on the potential growth trend that Ethereum will chart for itself in 2023 will be closely linked with that of Bitcoin.
Dear Readers, Ethereum (ETH) is the digital currency that will be featured in our price projections for 2023 today as we look ahead to what the coming year will herald for all stakeholders within the crypto network’s ecosystem.
Ethereum sits comfortably as the second largest cryptocurrency after Bitcoin (BTC) and it has a market capitalization of $156.6 billion per data from CoinMarketCap. The Ethereum blockchain is regarded as the most used blockchain network in the world as it supports the creation of smart contracts and decentralized applications, all of which contribute to the diverse functionality of the protocol.
Nonetheless, Ethereum and its native token Ether have been severely battered by the macroeconomic turmoil that weighed down the digital currency ecosystem. Though Ethereum is currently trading in the positive range, up by 1.79% at the time of writing to $1,269.21, the coin has shed as much as 74% from when it last hit its All-Time High (ATH) price of $4,891.70 last year.
Ethereum’s price plunged to its lowest price in two years earlier this month when it touched a low of $1,081.14 amidst the onslaught that was triggered when the news of the bankruptcy of FTX Derivatives Exchange went public. Thus far this year, Ethereum has touched a high of $1,784.50 as investors and traders made attempts to retest previous highs.
Ethereum Prospects and Price Predictions for 2023
For those who have been active in the crypto trading sphere, it will be agreed that the growth of Ethereum is largely dependent on the price of Bitcoin. As such, the predictions on the potential growth trend that Ethereum will chart for itself in 2023 will be closely linked with that of Bitcoin. This is not to say Ethereum will not draw on its own fundamentals to power its own growth, it just implies that traders will need to be watchful of broader market sentiment every time.
With the current momentum, Ethereum is showing, we can expect the price of Ethereum to close this year 2022 at $1,350, with a minimum likely low of $950. Here are the possible price levels that traders and investors can watch out for each month of the coming year:
- January 2023: $1,400
- February 2023: $1,450
- March 2023: $1,600
- April 2023: $1,300
- May 2023: $1,400
- June 2023: $1,650
- July 2023: $1,700
- August 2023: $2,000
- September 2023: $2,300
- October 2023: $3,300
- November 2023: $3,500
- December 2023: $4,000
According to the predictions above, the growth is bound to slow in the first few months of the year and it is likely to pick up momentum toward the end. While there is no rule of thumb as to how volatility in the coming year will affect this price trend, we are optimistic that the psychologically important $4,000 resistance level will be breached.
Ethereum Has Perfect Fundamentals for Growth
Undoubtedly, the transition of the Ethereum protocol from the Proof-of-Work (PoW) to the more energy-efficient Proof-of-Stake (PoS) consensus model has set the path for Ethereum to receive more attention from institutional investors.
Generally, the turmoil in the digital currency ecosystem of today, fueled by macroeconomic inconsistencies did not allow investors to take risky bets on crypto assets in general. By our projections, we are expecting the tides to change in the coming year with Ethereum receiving more attention from corporate buyers.
Most protocols in the Web3 world will also likely choose the Ethereum blockchain as their preferred network all contributing to the broad utility that can drive the growth of the Ethereum coin.
Stay tuned with us as we bring you more price prediction tips in the days ahead.