Ethereum price could rise to $2,500 by the end of the year, according to financial consulting firm deVere Group. The estimate represents a 200% plus increase from current price levels.
Ethereum Price Estimate
The independent financial consulting firm remains upbeat that increased adoption of the cryptocurrency will have a significant impact on its price going forward. The Ethereum platform continues to gain traction as most projects turn to it for smart contracts.
“This general upswing will be fueled by three mains drivers. First, more and more platforms are using Ethereum as a means of trading. Second, the increased use of smart contracts by Ethereum. And third, the decentralization of cloud computing.” said deVere CEO Nigel Green.
The sentiments do not come as a surprise given that Ethereum network underlying coin, Ether, has become new token issuer’s digital currency of choice. The Altcoin boasts of high levels of efficiency and flexibility. High processing speeds of transactions make its desirable for people looking for a quick financial fix.
While regulation of the cryptocurrency space has had a negative impact on prices, Green believes they could have a positive impact in the long run. According to Mr. Green, regulation will help strengthen investors’ confidence about investments in the space. Investors’ confidence should lead to capital inflows into the sector and expected prices pushes.
Ethereum has already started showing signs of trading higher after touching highs of $700 in recent trading session. After a pullback to $600, the cryptocurrency has bounced back in what appears to be a continuation of the emerging bull trend.
The digital currency needs to rise and stabilize above the $700 mark for investors to remain confident about further movements on the upside. On the downside, it faces immediate support at the $600 mark. Below that, the crypto could drop to the $500 handle.
Bitcoin is another cryptocurrency showing signs of breaking out after finding support above the $7,000 mark. According to Mr. Green, traders should expect the cryptocurrency to see-saw in the coming weeks at the back of sharp moves followed by subsequent corrections.
Outlook in overall cryptocurrencies has turned positive in recent weeks with bitcoin showing signs of bouncing back to the $10,000 mark. Tom Lee, Fundstrat co-founder, believes the cryptocurrency will take out the $25,000 mark before the end of the year.