Ethereum Price Forecast: Pause in Volatility Opens ETH Upside Potential

EthereumAfter a rapid recovery to $340.00 in the middle of October, the Ethereum price fell as low as $278.00 this week. Now that it has stabilized around the $300.00 level, there is a non-trivial chance that investors might start judging it on fundamentals.

To be sure, one bad piece of Ethereum news can always derail the ETH price forecast. But other than that, the big question looms over us all. The big question being, of course, “How high can ETH go?” It’s what we’re all wondering, crypto investors most of all.

Answering this question is made harder by our lack of a Magic 8 ball. However, we have identified several tailwinds that suggest that Ethereum is headed to $400.00 in the short term and $1,000.00 in 2018.

  1. The Ethereum Enterprise Alliance added 48 new members.
  2. Singapore’s central bank decides not to regulate cryptocurrencies.
  3. Ethereum’s blockchain is stable after the hard fork.
  4. A firm backed by Mark Cuban just held an ICO.
  5. Bitcoin might have trouble over its next hard fork.

Individually, none of these items are enough to convince me that ETH is poised for explosive growth. Collectively, though, they look suspiciously like a trend…

In any case, the Ethereum to USD exchange rate dropped 1.04% on Thursday morning, bringing the currency down to around $297.23.

Daily Ethereum Chart

Ethereum Price forecast chart

Considering that Bitcoin prices were slightly upbeat during that timeframe, it’s no surprise that the Ethereum to Bitcoin rate depreciated 3.25%.

Meanwhile, Ethereum trading volumes clocked in at $325.0 million, which is near the lower end of the spectrum for the month. However, that volume was spread evenly across geographies and exchanges.

For example, the most prominent exchange for trading Ethereum is Bitfinex. It accounts for only 8.3% of trading volume and deals mostly in Ethereum to USD transactions. The nearest competitor is Bithumb, which accounts for 7.62% and specializes in Ethereum to Won trades.

Analyst Take:

We continue to believe, albeit cautiously, that the ETH price will reach $1,000 in 2018. That has been our Ethereum price forecast for several months now and recent volatility is not sufficient enough for us to reconsider it.

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