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Ethereum price: 12,000 dollars by the end of the year?

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While the token has just recovered more than 40% of its value over the past two weeks, speculation on the future of Ethereum is rife. And in the game of forecasts, FSInsight proved to be particularly optimistic by announcing that Ethereum could reach $12,000 this year.

 

A Look Back at Recent Ethereum Price Action

 

 

 

The following graph, available on the CoinMarketCap platform, shows the price of Ethereum over the last three months

 

 

After experiencing an ATH last November, close to $5,000, the token experienced a bearish phase lasting several weeks, like the price of Bitcoin. If the entire crypto market has plunged, it is largely due to the threats of rate hikes from the American central bank: the FED. A less accommodating policy that the markets today seem to have integrated.

After touching what is currently a low point at $2,200 on January 24, the price of the asset seems to be starting to rise again. Barely 2 weeks later, the token has already started to attack 3,000 dollars. As of this writing, one ETH is trading against $3,085 after moving above $3,200 earlier in the day. This bullish movement, as short as it is, seems in any case to give ideas to certain analysts.

 

Ethereum at $12,000 in 2022?

 

In any case, this is the opinion expressed in a report by FSInsight, a New York financial institution. An institution that believes that the share of the Ethereum network in the entire DeFi sector remains underestimated by the markets. Data that would necessarily imply an undervaluation of the Ethereum price.

In this optimistic scenario, the institution predicts a smooth transition to Ethereum 2.0 which could cause a massive influx of capital into the asset, regardless of the evolution of the Bitcoin price. Seeing this scenario play out would likely imply an end to the downtrend and a mid-term trend reversal.

 

What About Prediction Algorithms?

 

When we talk about predictions on the price of a cryptocurrency, prediction algorithms are often put forward. These seek to predict future prices by analyzing past price fluctuations. For Ethereum, WalletInvestor’s models predict bullish momentum. Over a 12-month horizon, the platform estimates that the price of the token could come close to $6,000. In the longer term (5 years), the Ethereum crypto could exceed $15,000.

The TradingBeasts and DigitalCoinPrice platforms also share this long-term optimism, but to a lesser extent. Thus, DigitalCoinPrice estimates that the token could be trading close to its ATH at the end of 2023. For TradingBeasts, the token could remain in a neutral range until 2023 before resuming its forward march.

The prediction algorithms are to be used as a tool and not as a “crystal ball” indicator. The more distant the chosen horizon, the less precision will be at the rendezvous for these algorithms. And in 5 years, the crypto landscape could be dramatically changed.

The Deployment Of Ethereum 2.0 As A Driver Of The Rise?

 

Hard to imagine such a bullish scenario without a flawless deployment of Ethereum 2.0 (newly renamed “Consensus Layer”). The protocol that should allow Ethereum to move from Proof of Work to Proof of Stake is expected like the messiah by the markets. For bullish analyzes like FSInsight’s, this is a must-have.

Because the “Ethereum Killer” are knocking on the door and projects like Cardano, Solana, Terra or even Avalanche could end up nibbling market share from Ethereum in the decentralized finance sector.

As of this writing, Ethereum remains the most important DeFi protocol. According to data from Defillama, Ethereum apps still account for 59% of the TVL (Total Value Locked) of the entire DeFi sector.

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