Ethereum has quickly become the second most valuable cryptocurrency after Bitcoin. With the recent move to a Proof-of-Stake consensus model and expanded capabilities, the future of Ethereum looks bright. This guide provides a data-driven Ethereum price forecast for the short, medium and long term.

What is Ethereum (ETH)? Ethereum is a decentralized blockchain platform created by Vitalik Buterin in 2015. Like Bitcoin, it uses blockchain to store transaction records. But Ethereum's key innovation was its ability to create decentralized applications (dApps) and smart contracts on its blockchain.

The Ethereum blockchain serves as a secure public ledger for verifying and recording transactions. Ether (ETH) is the platform's native cryptocurrency that acts as the 'gas' for transactions and running smart contracts.

Some key aspects of Ethereum include:

Smart contracts:

These are applications that work exactly as programmed, without the risk of downtime or third party intervention.

Decentralized platform:

Ethereum operates through a global peer-to-peer network, avoiding centralized control.

Programmable Blockchain:

Developers can use Ethereum to create and deploy decentralized applications of any kind.

Proof-of-Stake consensus:

Ethereum has moved to a more efficient Proof-of-Stake consensus system known as Casper, which requires less energy.

These features make Ethereum an extremely flexible and promising platform for decentralized finance (DeFi), NFTs, DAOs, dApps, and more. Factors influencing the price of Ethereum:

Ethereum's growth has been explosive, but not without volatility. Here are some factors influencing ETH prices.

Like most cryptocurrencies, the price of Ethereum is largely dependent on trends in the overall cryptocurrency market. Bitcoin price actions, in particular, have an impact on altcoins.

Gas Fees and Transaction Costs: Increasing Ethereum gas fees during periods of network congestion can reduce usage and put pressure on the price. Efforts to solve large-scale problems are aimed at reducing transaction costs.

Popularization among the masses:

With the increase in real-world use cases of Ethereum in DeFi, NFTs, etc., popularity among the masses is increasing, resulting in higher demand and prices.

Competition:

Even though Ethereum is currently the dominant platform for smart contracts, competition from projects like Solana, Cardano, etc. could potentially erode its market share and impact ETH prices.

Regulation:

Regulation or clarification of the position of cryptocurrencies and Ethereum can either positively or negatively affect prices, affecting investor sentiment.

Technology Updates:

Recent developments in Ethereum, such as the move to Proof-of-Stake consensus or ETH 2.0 with the introduction of sharding, could improve capabilities and impact value over time.

Burning Ether:

Burning ETH by implementing EIP-1559 removes Ether from circulation, which helps reduce supply and can gradually increase the value of the remaining Ether.

I'll do a part two with historical ETH pricing where we can guess future prices.

But you can always receive the fastest possible updates on the situation in our Telegram channel Moonxcrypto. This publication was sponsored by him

This article does not constitute financial advice and is for informational purposes only.