Ethereum Price surged along with bitcoin and other top cryptocurrencies during the latest bitcoin bull ride. It has surged even further in the past few days to scale the $170 mark thereby giving cryptocurrency analysts and observers a lot to talk about in the short term.
Ethereum Price suffered terribly in 2018
Until recently, price gains like this was not the story of Ethereum. ETH notably lost significantly against the dollar last year. Firstly, the general cryptocurrency market crashed and cryptocurrencies including bitcoin and Ethereum fell from all-time highs. Besides this, Ethereum fell further behind the cryptocurrency market a lot of time that year. This was blamed on the selloff of ETH by projects who raised funds in the network during the popular Initial Coin Offerings (ICOs).
Ethereum Price predictions take a positive turn
However, many analysts predict Ethereum to be a long term winner among other cryptos. In one of the Ethereum price prediction reported by Smartereum, Joseph Lubin the founder of ConsenSys predicted that Ethereum will become the global layer for payments replacing systems used by PayPal, VISA, eBay as well as “centralized” Blockchain networks.
Sharding Solution to Ethereum Blockchain is Close
For positive Ethereum Price Prediction like this to pan out, Ethereum has to overcome its own demons particularly in the area of Blockchain scalability. Since 2017 when popular Ethereum-based cat game CryptoKitties clogged the Ethereum Blockchain, Ethereum developers have set their focus on solutions that will increase the speed and volume of transactions that can be accommodated on the Ethereum Blockchain.
Thankfully, Ethereum developers have made considerable progress with Sharding, one of the Blockchain scaling options. With the successful launch of Constantinople upgrade after notable delays, Ethereum moved closer to a more scalable Blockchain. When implemented, sharding will make Ethereum lighter, faster and cheaper. It would regain its position as the main platform for deploying decentralized apps (DApps) and smart contracts.
According to the six-phased sharding roadmap, basic sharding is expected between 2020 and 2021. After this, the Ethereum network can be scaled to millions of transactions per second which will attract DApps. When the majority of DApps run on Ethereum and use ETH, the demand for ETH will grow and so would the price.
Ethereum Security Status Resolved
Last week, the United States Securities and Exchange Commission (SEC) released a framework in an effort to clarify eth security status, xrp security status, and status of ICO tokens in general. Though it failed to mention and clear any particular cryptocurrency, it suggested that not all tokens issued during ICOs are securities. This, coupled with remarks by SEC commissioner last year about eth security status is interpreted as eth is not a security.
A new era of ICOs will boost Ethereum again
ICO which used to be a huge trend in the past is now a shadow of itself as they generated record low amounts later in 2018 and now in 2019. Despite this, analysts have predicted a resurgence in ICOs and this will in turn boost ETH demand and ETH price.
Institutional Investors prefer Ethereum
Finally, the majority of accredited investors—with a lot to funds to invest—favor Ethereum ahead other altcoins. According to a study conducted last year, this investor class believes in the future of a decentralized Ethereum compared to other DApp Blockchains.
Ethereum Price Prediction
Ethereum Price today
As at press time, ethereum is trading at about $178 to the USD which is about 5 percent higher than it traded by the same time yesterday. Trading volume has swelled to $9.4 billion in the last 24 hours