Ethereum (ETH) prices finally detached from the $300.00 level this week, but they remain way below our Ethereum price forecast. How soon can investors expect a bullish rally to form?
Obviously, we don’t have a Magic 8 ball. We can’t predict how ETH prices will move with 100% accuracy. That said, buy-and-hold investors don’t need to concern themselves with daily Ethereum news—they can make enormous returns by following fundamentals.
For instance, initial coin offerings (ICOs) were a big part of Ethereum’s story in 2017. Since most of them took place on Ethereum’s platform, a savvy investor would have bet on ETH regardless of its day-to-day movement.
That investor would have gained 3,769% since the start of the year.
Daily Ethereum Chart
In the same way, here are three ETH developments that could spark a rally in 2018:
1. Better Regulation for ICOs
Although countries like China are cracking down on cryptocurrencies and ICOs (to prevent capital flight), stable economies are walking a responsible line on ICOs. Regulators in the U.S. and Canada, for instance, recognize there are good ICOs and fraudulent ICOs. They are in the process of crafting rules to weed out the scams, which is key to attracting institutional funds to the ICO process. Big Money won’t get involved until there is tighter regulation.
2. Lightweight Payments
In order for Ethereum’s blockchain to sustain the extra traffic, it needs a way to execute more payments per second, and at a lower cost. “Raiden” is the answer. It is Ethereum’s answer to Bitcoin’s “Lightning Network;” a shell of coding that sits atop the blockchain, facilitating lightweight transactions to slip from one node to another.
3. Cooperation with Fortune 500 Companies
At the moment, Ethereum has the world’s biggest consortium of blockchain startups, experts, and major corporations. It is called the Ethereum Enterprise Alliance, and it gives me hope that we’ll see increased development of enterprise-level applications on the blockchain.
These trends are long-term, to be sure, but that phrase means less in the world of cryptocurrencies. For instance, the rise of ICOs was considered a long-term trend, yet it manifested and matured over a six-month period.
As you may deduce from our title, we believe that ETH is headed to $1,000 in 2018. Beyond that level, we will have to re-examine the data in order to form a new thesis. Till then, the possibility of 224% upside should be sufficiently enticing to keep an eye on ETH.