1. Price changes
In recent years, Ethereum has shown both periods of rapid growth and significant decline:
• Growth: In 2021, ETH reached its all-time high ($4,878 in November), rising on the wave of popularity of DeFi, NFTs, and the general “bull run” of the crypto market.
• Decline: In 2022, the price fell to $880 under the influence of the market crash (decline in risky assets, collapse of Luna and FTX).
2. Current status
• In 2023, Ethereum stabilized between $1,500-$2,000 after switching to a Proof-of-Stake consensus mechanism (The Merge). This significantly reduced the network's energy consumption, which positively affected the long-term forecast.
3. Factors affecting growth
• Demand for smart contracts: Increasing number of DeFi and NFT projects.
• Transitions to new phases of upgrades (e.g. Sharding in 2025).
• General investor interest: Ethereum is one of the most institutionalized cryptocurrencies.
4. Factors affecting the decline
• Competition: Solana, Binance Smart Chain, Polkadot offer cheaper and faster solutions.
• Regulation: Risks related to legislation in the US and other countries.
• Economic crises: A recession or rising interest rates can weaken demand for crypto assets.
5. Development forecast
• Short-term forecast: Volatility is expected, but if the cryptocurrency market as a whole shows growth, ETH could reach $2,500-$3,000.
• Long-term forecast: Due to ecosystem development (Layer-2 solutions, improved scalability), Ethereum has the potential to reach new highs within 3-5 years.
Conclusion
Ethereum remains one of the leading cryptocurrencies with a large ecosystem that ensures stable demand. However, its dynamics depend on market conditions, technological updates, and global economic conditions.
