Will 2023 be the year of Ethereum? Despite the global recession, regulatory reforms, the Fed’s war on inflation, Buterin’s blockchain is set to grow alongside DeFi.
In the black year of cryptocurrencies, Ethereum dropped 67% (and 75% from its all-time high), but that didn’t stop it from achieving incredible technological feats. The "merge" concluded in September with the transition from the proof-of-work to the proof-of-stake algorithm represented a very important milestone in the development of the blockchain.
The Ethereum blockchain is in fact used by developers to create other cryptocurrencies, decentralized digital applications (dApps), NFTs or smart contracts.
Ethereum therefore has all the credentials to shine again but in the short term there are still many criticalities to overcome and which for now keep investors away from the cryptocurrency market.
Below we see a Ethereum price forecast based on the potential value, given by the implementation of future projects, and on the history of the coin.
Ethereum forecast for 2023
The Ethereum forecasts for 2023 are mixed, with a long list of headwinds still blowing strongly after the chain failures of tokens and exchanges throughout 2022. Ethereum, like Bitcoin and other cryptocurrencies, pay the price for the reputation collapse of the entire crypto industry, despite the (untapped) potential of its technology.
In early 2022, Bloomberg Intelligence analyst Mike McGlone predicted that the price of Ethereum would hit $4,000-4,500 by the end of the year. Ethereum, on the other hand, closed the last session of 2022 at $1,200. For 2023, analysts and experts are making more cautious forecasts, estimating that Ethereum could rise to $2,500 within the first half of the year.
According to CoinLedger CEO David Kemmerer, the current Ethereum drop is unjustified and caused by the general weakening of the broader cryptocurrency market as interest rates continue to rise. In formulating the forecasts for 2023, experts agree that cryptocurrencies will suffer new declines in the coming months.
Assuming that at the end of the cryptocurrency winter only Ethereum and Bitcoin remain operational, prices could stabilize making the $2,500 target likely. However, if the cryptocurrency winter turns into an ice age, the price of Ethereum could easily slip back below $1,000.
There is a risk of a deeper drop to $500-700 if the Fed were to be more aggressive than expected, in the event of a US economic hard landing or in the event of too stringent regulatory reforms in the crypto sector. Nor should we forget the endless judicial case of the SEC against Ripple: a possible conclusion against Ripple would add further downward pressure to Ethereum and other cryptocurrencies.
WalletInvestor estimates that the downtrend will continue into mid-2023 before market conditions stabilize.
Why buy Ethereum?
The Ethereum blockchain differs from that of Bitcoin and allows for the creation of several cryptocurrencies (besides Ether). It is a rapidly growing and disruptive innovation in the web3.0 space and in the transition from proof-of-work to proof-of-stake algorithm it has reduced the power consumption for the validation and modification of the block chain of the 99.9% and at the same time increased its scalability.
Ethereum’s protocol-level innovation is leading to an evolution of the social, economic, and political operating system substrate.
Companies such as Disney, Starbucks, Adidas and many others have already started integrating cryptocurrencies into their processes and it is no coincidence that during 2022 transactions in Ethereum were 338% higher than those made in Bitcoin, according to data of Nasdaq and Ycharts.
This trend could therefore also continue in 2023, the year in which Ethereum will reach new milestones in its roadmap.
Updated roadmap diagram! pic.twitter.com/MT9BKgYcJH
— vitalik.eth (@VitalikButerin) November 4, 2022
In 2023, Ethereum will continue to be the most widely adopted, widely developed, and capital-intensive Layer 1 blockchain.
Original article published on Money.it Italy 2023-01-03 18:50:15. Original title: Ethereum, le previsioni per il 2023
