Is Ethereum Worth Buying in 2023? An In-Depth Look
As a crypto investor, you’ve probably been eyeing Ethereum (ETH) for a while now, but the nagging question remains: is 2023 the right time to buy?
With the volatility of the crypto market and the impact of the bear market on Ethereum’s price, it’s essential to weigh the potential risks and rewards before diving in.
In this article, we’ll explore whether now is the right time to invest in Ethereum and provide some insights into its future prospects.
Please note that this article is for informational purposes only and should not be considered professional financial advice.
Influential Opinions on Ethereum
Cathie Wood, a renowned investor, declared that Ethereum is more undervalued than Bitcoin (BTC) and expects an ETH price of US$180,000. This would represent approximately a 25x return on a BTC investment and 50-60x on ETH. While these predictions are certainly eye-catching, the future price of both cryptocurrencies in 2032 remains uncertain.
The Merge and Its Implications
The Merge, executed on September 15, 2022, completed Ethereum’s transition to Proof-of-Stake (PoS) consensus, officially depreciating Proof-of-Work and reducing energy consumption by ~99.95%. This shift means that the wealth of stakers, not computing power, now drives the network forward. Consequently, the biggest owners, including custodians, could gain outsized influence in the Ethereum ecosystem, potentially moving away from the decentralised ethos that many cryptocurrency proponents value.
Network Upgrades and Dapps
Ethereum price predictions are essential for every investor looking to try their luck in the crypto industry. After the recent introduction of network upgrades, Ethereum experienced a resurgence in demand and price action. Decentralised applications (Dapps) are a growing movement that leverages Ethereum to disrupt existing business models or invent new ones. This development further adds to Ethereum’s potential as an investment.
The Ethereum Triple Halving and Decreased Issuance
The so-called Ethereum Triple Halving refers to a significant reduction in ETH issuance, which has both positive and negative implications. On one hand, decreased issuance makes speculative endeavours less attractive, as they compete with a strong base asset. On the other hand, ETH issuance has historically been much greater than BTC issuance as a fraction of market cap, and during past winters, ETH has not held its value as well. Decreased issuance should improve this.
A dynamic monetary policy that adapts to market conditions could be in Ethereum’s future, tightening during bear markets and loosening during bull runs. This approach would better direct funding to creators rather than miners, benefiting the Ethereum ecosystem.
Current Ethereum Price and Future Prospects
Today’s Ethereum price is $1,414.66, with a 24-hour trading volume of $12,499,385,302 USD. Ethereum is down 1.50% in the last 24 hours, and its current CoinMarketCap ranking is #2, with a live market cap of $173,116,822,094. The current price is $1,658.26 per ETH, which is 67.21% below its all-time high of $4,891.70 reached on November 9, 2021.
The Merge did not change anything for holders/users. Major recovery in crypto prices is unlikely without new or returning investors bringing cash back into the market. Unless retail investors enter the market, Ethereum may not strongly surpass its all-time high. However, factors like Coinbase, NFT marketplaces, and the wealth held by whales could spark retail interest and impact Ethereum’s price.
Conclusion
Is Ethereum worth buying in 2023? As with any investment, it’s essential to weigh the potential risks and rewards before making a decision.
Our Ethereum price prediction for 2023 is a maximum price of $2,609.01, indicating a significant gain on the current price. We also anticipate a minimum value of $2,121.12 and an average market price of $2,186.87. These projections suggest that Ethereum could be an attractive investment opportunity.
We expect the effect of Ethereum’s Merge, the Shanghai update, and other frequent developments to positively impact the price of Ethereum. However, it’s important to consider the potential risks, such as decreased ETH issuance and the potential for outsized influence by major stakeholders, which may pose risks to Ethereum’s decentralised ethos. Additionally, the crypto market is highly volatile, and Ethereum’s price recovery will depend on factors such as retail investor interest and the actions of whales.
Ultimately, the decision to invest in Ethereum in 2023 should be based on your risk tolerance, investment goals, and a thorough analysis of market trends and expert opinions.
Always remember that this article is for informational purposes only and should not be considered professional financial advice.
It’s essential to do your research and consult with a financial professional before making any investment decisions.
