Ethereum price has done relatively well this year. It has risen by more than 500% year-to-date and outperformed Bitcoin, which has risen by less than 100%. This growth has pushed Ethereum’s market capitalization to more than $540 billion. And this trend could continue in the coming weeks since the price is approaching the key resistance level at $5,000.
Ethereum has rallied because investors understand its unlimited uses. While the number of Ethereum-killers has risen substantially in the past few months, Ethereum has maintained its market share. For example, in Decentralized Finance (DeFi), Ethereum’s network has a total value locked (TVL) of more than $180 billion. This is higher than the TVL of other chains like Binance Smart Chain (BSc), Avalanche, and Solana, combined.
Ethereum’s use case in other industries like in non-fungible tokens (NFTs) and the metaverse has become well-known. For example, it powers key NFT platforms like OpenSea and key metaverse projects like Decentraland.
Ethereum price prediction for 2021
In my previous estimate on Ethereum, I noted that the price will likely keep rising to about $5,000 later this month. All it needs is a catalyst that could push its price to that level. A report by LongForecast expects that the ETH price will be between $3,875 and $5,176 in December. The average estimate is for the price to rise to about $4,600.
For 2022, Long Forecast expects that Ethereum price will soar to more than $10,000 by the end of the year. For 2023, the estimate is that the price will rise to more than $2023.
Another estimate by Wallet Investor finds that Ethereum will end the year in the current range. It estimates that the closing price will be at about $4,550. Still, the Wallet Investor and Long Forecast estimates tend to be relatively inaccurate.
Turning to the four-hour chart, we see that the ETH price has been attempting to bounce back this week. It has risen by about 25% from the lowest level during the weekend. It is now forming what looks like a bullish flag pattern. Also, it has risen above the 25-day and 50-day moving averages.
Therefore, there is a possibility that the coin will have a bullish breakout as bulls target the year-to-date high of more than $4,800. I still believe that the price can rise to $5,000 this month.