ethereum-prediction

Ethereum (ETH) price prediction 2018

What does the future hold for the value of Ethereum (ETH)? We've explored some possibilities here.

Ethereum is a decentralised blockchain platform on which decentralised applications (dapps) can be built. It allows developers to create smart contracts, which automatically execute tasks when specific conditions are met, and runs using a cryptocurrency token known as Ether.

As the world’s second-largest cryptocurrency after bitcoin (BTC) in terms of market capitalisation at the time of writing, Ethereum has attracted plenty of attention around the world. However, before deciding whether or not you should buy any ETH, it’s essential that you fully understand the factors affecting the value of this cryptocurrency and what they could mean for the price of ETH in the weeks and months ahead.

Learn more Where to buy Ethereum (ETH)

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade.

Quick facts

Ethereum

Coin NameEthereum
SymbolETH
Algorithm typeEthash
MineableYes
Launch date30 July 2015

Ethereum price prediction

Cryptocurrencies have a well-deserved reputation for volatility, and a look back at a graph charting the performance of ETH over the past year will show substantial fluctuations. With this in mind, it’s extremely difficult to make an accurate prediction of where the price of Ethereum or any other cryptocurrency is headed in the future.

However, what we can do is take a closer look at the factors working for and against the potential growth of a cryptocurrency. This will help you form a clearer understanding of the risks of buying digital currency and how the price of Ethereum will change in the coming weeks and months.

What could drive Ethereum’s growth?

  • Use cases. Ethereum’s supporters have pointed to its many potential real-world use cases as factors that could drive growth. The platform allows developers to build and deploy dapps across a diverse range of industries, including everything from shipping and logistics to token systems, banking, file storage and reputation systems.
  • Dapps. There is already a large number of dapps that have been built and deployed on the Ethereum network. These include worldwide supercomputer Golem, prediction markets tool Augur, exchange and payment platform OmiseGo and decentralised cloud platform Storj. The success (or otherwise) of such dapps will be an important factor determining ETH’s price, as will the creation of new applications on the platform. Not only can they add to the credibility of the Ethereum platform, but there’s also the fact that creating and deploying dapps requires the purchasing of ETH.
  • ICO popularity. The Ethereum platform is a popular choice for startups launching ICOs, many of which allow users to purchase new tokens using ETH, potentially increasing demand for ETH.
  • Accessibility. Ethereum is the world’s second-most traded digital currency and is easily available on a wide range of crypto exchanges. This makes it easy for investors to access and increases Ethereum’s credibility in the eyes of those outside the crypto community.
  • Casper and other upgrades. At some stage in 2018 or 2019, Ethereum will shift from a Proof of Work to a Proof of Stake model under the Casper upgrade. It will also implement other solutions designed to make the network more scalable, such as “sharding” (explained further down this page). If these upgrades achieve the desired results, this could help Ethereum to continue to grow by better equipping it to handle increased transaction volume.
  • Commercial partnerships. The Enterprise Ethereum Alliance aims to connect Fortune 500 enterprises, startups, academics and technology vendors with Ethereum subject matter experts. Its list of members includes a host of big names, including Microsoft, BP, JP Morgan, ING, Intel, Credit Suisse and Santander.
  • Supply. There is no cap on the total supply of Ethereum, with a maximum annual issuance of the currency of 18 million ETH per year. This means ETH’s relative rate of inflation decreases every year and is designed to eventually stabilise and reach an equilibrium. However, the annual issuance rate following the implementation of the Casper update is expected to be much lower.

What could hold Ethereum back?

  • Competitors. Ethereum will face competition from an increasing number of alternative smart contract platforms in coming times. Ethereum Classic (ETC), NEO (NEO), Stratis (STRAT), Lisk (LSK) and Waves (WAVES) are just some of the competitors you’ll need to consider when comparing platforms.
  • Scaling issues. While Ethereum’s popularity is a good thing for its proponents, it has also produced a range of problems as the platform has struggled to cope with increased traffic. This has caused slower transaction times and higher processing fees, though there are plans in place to overcome these obstacles.
  • Smart contract security concerns. Vulnerabilities in the code of Ethereum smart contracts have led to several incidences of hacking, so security will be an ongoing concern for anyone using the platform moving forward.
  • Increased regulation. Reports of threatened crackdowns on cryptocurrencies by governments around the world could potentially have a negative impact on the price of all digital currencies.
  • Dodgy ICOs. Some critics have suggested that the launch of unsuccessful or scammy ICOs on Ethereum could affect public perception of the platform and negatively impact on its widespread adoption.

Where to buy Ethereum

Name Product Deposit methods Fiat Currencies Supported Cryptocurrencies
BPAY
Cash
Cryptocurrency
POLi
AUD
BTC, BCH, ETH, XRP, ADA, XEM, LTC, XLM, TRX, DASH, NEO, XMR, EOS, QTUM, BTG, LSK, ETC, XVG, SKY, NAS, LINK, GO & over 100+ more
CoinSpot is an Australian-based marketplace that allows you to easily buy, sell or trade more than 100 cryptocurrencies.
Cash
Cryptocurrency
Electronic Funds Transfer
POLi
AUD
BTC, ETH, BCH, EOS, ZRX, AE, AION, REP, DGD, ICX, IOST, OMG, PPT, SNT, TRX, VET, ZIL, ZEC, LSK, DCR, SC, STEEM, GNT, DGB, BAT, KMD, BTG, ADA, DASH, ETC, OIST, LTC, XMR, XEM, NEO, ONT, QTUM, XRP
Buy 30+ cryptocurrencies using POLi, cash or Electronic Funds Transfer.
Bank transfer
Credit card
Debit card
Bank transfer (SEPA)
USD, GBP, AUD, EUR, INR, ARS, BRL, CAD, CNY. NZD, DKK, HKD, ILS, JPY, KES, CHF, MXN, NOK, PHP, PLN, SGD, SEK, AED
BTC, LTC, ETH, BCH, BAT, DASH, BTG, XRP, VOX
Buy, send and convert more than 35 currencies at the touch of a button.
Credit card
Debit card
Neteller
PayPal
Yandex Money
USD
BTC, BCH, DASH, ETC, ETH, LTC, XRP, MIOTA, XLM, ADA, NEO, EOS
Copy the trades of leading cryptocurrency investors on this unique social investment platform.

Disclaimer: Highly volatile investment product. Your capital is at risk.
65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Cryptocurrency
BTC, XRP, USDT, ETH, NEB, XVG, TRX, NEBL, ETH, NEO, FUN, ETC, BCC, POE, DASH, ELF, ICX, BNB, ZRX, APPC & 80+ more
Trade an extensive range of reputable coins on this world-renowned exchange, popular for its high liquidity and multi-language support.
Cryptocurrency
Electronic Funds Transfer
SWIFT
AUD, NZD, USD
BTC, BCH, ETH, LTC, XRP, OMG, ZRX
Trade AUD and other fiat currencies against 5 different cryptos at competitive rates.
Cryptocurrency
Wire transfer
USD, EUR
BTC, BCH, BTG, IQ, TRX, GNT, AVT, DASH, DATA, EDO, EOS, ETC, ETH, LTC, MIOTA, NEO, OMG, QTUM, SAN, USDT, XMR, XRP, BAT, ZRX, FUN, MANA, SPANK, TNB, RLC, RCN, REP, ELF, AID, SNGLS, SNT, QASH, YOYO, MITH, ETP, ZEC, XTZ, CNN, BOX, GOT, TKN, UTN
Spot trade all of the major cryptos on this full-featured exchange and margin trading platform.
NB: A minimum opening deposit of US$10,000 or cryptocurrency equivalent applies.
Bank transfer
Cash
POLi
AUD, GBP, USD
BTC, BCH, ETH, LTC, XRP, NEO, VEO & 400+ more
HiveEx.com is a global over-the-counter (OTC) cryptocurrency brokerage specialising in high-volume trades of $50,000+.
HiveEx.com and finder.com.au are members of the Hive Empire group of companies.
Credit card
Debit card
USD, EUR, RUB
BTC, BTG, BURST, BYC, CANN, CFI, CLAM, CLOAK, CLUB, COVAL, CPC, CRB, CRW, CURE, CVC, DASH, DCR, DCT, DGB, DMD, DNT, DOGE, OMG & 140+ more
Use your credit or debit card to buy bitcoin and other cryptocurrency without having to verify your identity.
Cashlib
Credit card
Debit card
Neosurf
USD, EUR, GBP, JPY, CNY, KRW, AUD, CAD, DKK, NOK, SEK, TRY, HKD, SGD
BTC, ETH, XRP, DASH, LTC, BCH, ETC, OMG, ZRX, CVC, BNT
Buy cryptocurrency with cash or credit card and get express delivery in as little as 10 minutes.
Cryptocurrency
MoneyGram
OKPAY
PayPal
Perfect Money
Western Union
USD, EUR, RUB
BTC, ETH, LTC
Buy and sell crypto and other digital currencies on this global fixed-rate exchange.
Huobi Cryptocurrency Exchange
Cryptocurrency
-
BTC, ETH, HT, LTC, PAI, BCH, XRP, DASH, IOST, EOS, TRX, ETC, OCN, ONT, ELF, ABT, CMT, ELA, ZEC, XZC, OMG & 75+ more
Huobi is a digital currency exchange that allows its users to trade more than 190 cryptocurrency pairs.
Bithumb Cryptocurrency Exchange
Cryptocurrency
Wire transfer
KRW
BTC, BTG, BCH, DASH, ETC, LTC, EOS, XRP, ETH, QTUM, TRX, ICX, VET, XMR, ZEC, MITH, WAVES, WTC, ITC, LINK
A global platform where users can make KRW and cryptocurrency deposits to purchase up to 15 popular cryptocurrencies.
OKEx Cryptocurrency Exchange
Bank transfer
Cryptocurrency
WeChat
USD, CNY
BTC, ETH, LTC, EOS, TRX, ETC, BCH, TRUE, XRP, ABT, HSR, MITH, BTM, AUTO, IOST, & over 119+ more
Listing over 100 cryptocurrencies, OKEx offers its users a variety of payment methods and coins to choose from.
Kraken Cryptocurrency Exchange
Electronic Funds Transfer
Bank transfer (SEPA)
Wire transfer
USD, EUR, GBP, JPY, CAD
BTC, BCH, ETH, ADA, QTUM, ETC, XMR, DASH, LTC, XRP, XLM, REP, ICN, MLN, ZEC, USDT, GNO, EOS
Exchange multiple cryptocurrencies through a range of payment methods, including Electronic Funds Transfer, SEPA or Wire Transfer.
Poloniex Digital Asset Exchange
Cryptocurrency
-
BTC, ETH, XRP, DOGE, XLM, ETC, STRAT, LTC, SC, DGB, BCH, LSK, XMR, LOOM, BAT & 50 more
Trade various coins through a global crypto to crypto exchange based in the US.
KuCoin Cryptocurrency Exchange
Cryptocurrency
-
BTC, BCH, DAG, ETH, XRP, EOS, LTC, ADA, TRX, NEO, ONT, STEEM, BTM, BCD, ZINC, VET, OLT, NUSD, LOC, ZEN & 50+ more
Browse a variety of coin offerings in one of the largest multi-cryptocurrency exchanges and pay in cryptocurrency.
BitBay Cryptocurrency Exchange
Cryptocurrency
Express Polish Post Office 24/7
Express Zabka Market
Wire transfer
USD, EUR, PLN
BTC, BCC, BTG, LTC, ETH, LSK, GAME, DASH, KZC, XRP, XIN,ZEC,XMR
This Polish-based exchange offers a variety of accessible payment methods, including Express Polish Post Office 24/7 service and Express DotPay.
IDEX Cryptocurrency Exchange
IDEX Cryptocurrency Exchange
Cryptocurrency
-
EOS, RFR, CS, AUC, BEE, BANCA, CNN, EOSDAC, FSN, NBAI, TRAC, VET, XBP & 60+ more
Cryptopia Cryptocurrency Exchange
Cryptocurrency
-
BTC, BCH, ETH, LTC, DOGE, NEO, XMR, POWR, DASH, PIVX, XEM, OMG, GNT, ZEN, NRG, SMART & 500+ more
Buy and sell hundreds of cryptocurrencies with minimal verification on this all-in-one, New Zealand-based exchange.
Mercatox Cryptocurrency Exchange
Cryptocurrency
Payeer
Perfect Money
Yandex Money
USD, EUR, RUB
BTC, XRB, ETH, DCN, BCH, NIO, TRX, DASH, COB, DOGE, PRIX, DSR, XCPO, LTC, VERI, LOC, NUA, PKT, PPT, ICO & 80+ more
Supporting over 100 coins, you can exchange a variety of cryptocurrency pairs on this peer-to-peer platform.
Bittrex Digital Currency Exchange
Cryptocurrency
Wire transfer
USD
BTC, ETH, BOXX, XVG, SC, XRP, DOGE, STRAT, XMR, ADA, OMG, ETC, BCC, XLM, DGB, UKG, QTUM, ZCL, RDD, LTC, NEO, XRP, TRX, ZEC & 120+ more
Buy from one of the largest cryptocurrency exchanges with a selection of over 190+ cryptocurrencies and 3 USD pairings.
Cryptonit Cryptocurrency Exchange
Wire transfer
OKPAY Bank transfer (SEPA)
Advance Cash
EUR, USD
BTC, ETH, ETC, ZEC
Cryptonit is a secure platform for trading fiat currency for bitcoin, Litecoin, Peercoin and other cryptocurrencies which can be delivered to your digital wallet of choice.
HardBlock Bitcoin Service
POLi
AUD
BTC
Buy and sell bitcoin in AUD through POLi when using this exchange based in Australia.
ShapeShift Cryptocurrency Exchange
Cryptocurrency
-
BTC, BCH, BTG, ETH, ETC, FUN, 1ST, ANT, BAT, BNT, BLK, CVC, CLAM, DASH, DCR, DGB, DNT, DOGE, EDG, EOS, FCT, GAME & 25+ more
A global exchange where no account is needed to begin trading cryptocurrency to cryptocurrency.
XBrick Cryptocurrency Exchange
Cryptocurrency
-
BTC, USDT, ETH, EOS, AE, BTO, BTS, CAN, HLC, SEER, XAS
Recently launched in Australia in late 2017, XBrick now offers its services globally and users can download its mobile trading platform to buy and sell cryptocurrencies.

Compare up to 4 providers

HiveEx Logo

Enter your details below to receive a quote from a HiveEx.com trader as soon as possible.

HiveEx.com is an over-the-counter (OTC) cryptocurrency platform specialising in high-volume trades.

  • Trade between $50,000 and $100m for a fixed price
  • Tap into HiveEx.com’s global network of high liquidity trading partners
  • Access competitive rates compared to traditional exchange trading
  • Receive your coins in your wallet fast, with same day settlement options
  • As an AUSTRAC registered company, HiveEx.com is fully compliant with industry-standard AML and CTF obligations

Read our step-by-step guide to find out more about buying Ethereum

What’s coming up in Ethereum’s roadmap

To get a better idea of what the future holds for Ethereum, we also need to take a look at the projects and upgrades scheduled for completion in the Ethereum roadmap.

Perhaps the biggest update due to arrive at some stage in 2018-2019 is Ethereum’s switch from a Proof of Work platform to a Proof of Stake algorithm. Known as Casper, this update aims to improve transaction processing times and reduce transaction fees on the Ethereum network.

It will also make Ethereum miners redundant and replace them with “stakers”. These users will stake their ETH tokens in special wallets and receive dividends from network fees based on how much ETH they stake.

However, Casper is still in development, so whether or not it achieves its aims remains to be seen.

There are also a couple of other key updates planned for the future. Speaking at BeyondBlock Taipei in November 2017, Ethereum inventor and co-founder Vitalik Buterin outlined his vision for the future of Ethereum. As well as the shift to Proof of Stake, Buterin mentioned other improvements scheduled for the Ethereum network, including:

  • Sharding. This process involves dividing the blockchain into several smaller component networks, allowing transactions to be processed in parallel and therefore designed to increase Ethereum’s processing speed.
  • Smart contract security. In order to address security concerns surrounding smart contracts, Buterin announced that Ethereum will eventually introduce formal verification for smart contracts. A new smart-contract programming language, Viper, is also being developed to allow for the creation of safer applications.

Ethereum’s competition

In the crowded cryptocurrency market, Ethereum will also face competition from a variety of other blockchain projects. The performance and development of those competitors could have positive or negative implications for the value of ETH.

Some of Ethereum’s main competitors include:

  • Bitcoin (BTC). While bitcoin and Ethereum serve two fairly different functions, the two are often compared to one another due to the fact that they are the world’s two largest cryptocurrencies. It’s also worth pointing out that the price performance of bitcoin has often had a significant effect on the value of other cryptocurrencies.
  • Ethereum Classic (ETC). This open-source blockchain platform is actually based on the original Ethereum code and was born in 2016 following the infamous The DAO hack and a subsequent disagreement among the Ethereum community.
  • NEO (NEO). Often referred to as the Ethereum of China, NEO is a blockchain platform for the development of digital assets and smart contracts. It’s also one of the world’s top 10 cryptocurrencies in terms of market cap.
  • Stratis (STRAT). A software platform written in C# and .Net, Stratis aims to offer a blockchain integration solution for businesses.
  • Lisk (LSK). Based on JavaScript, Lisk aims to make it simple for developers to build and deploy blockchain applications.
  • EOS (EOS). Designed as a platform for the creation of scalable dapps, EOS aims to offer a user-friendly interface that provides ease of accessibility to blockchain technology for everyone. It also regularly features in a list of the top 10 cryptocurrencies by market cap.
  • Waves (WAVES). Waves is a blockchain platform that allows its users to issue their own cryptocurrencies and build applications.

Beyond 2018: What does the future hold for Ethereum?

In the next 12 months, the main focus for Ethereum will be on solving the problem of scalability. If this can be successfully achieved, the project is well placed to seek out further growth opportunities in the future. Having earned itself a strong position in the crypto sphere thanks to the many potential real-world uses for its technology, not to mention partnerships with some big players in the corporate world, Ethereum looks like a digital currency with plenty of potential.

However, whether or not those scaling issues can be overcome remains to be seen, while there’s also the fact that there are plenty of alternative smart contract platforms that will battle Ethereum for market share. Ongoing upgrades and continuing development are needed to help the platform rise to the challenge thrown down by the competition.

Bottom line

Cryptocurrencies are complex and highly speculative, and buying any form of digital currency comes with a high level of risk. It’s essential to understand and appreciate those risks before making any purchases.

Ethereum’s myriad potential use cases in the real world make it a project many are watching with great interest, and the battle to solve scalability issues to improve transaction speeds and lower fees will be crucial.

Competition from other projects could also play a part, though at the aforementioned Taipei blockchain conference in November 2017, Ethereum’s co-founder Vitalik Buterin seemed unconcerned about potential threats from competitors, saying, “The Ethereum killer is Ethereum, the Ethereum of China is Ethereum, the Ethereum of Taiwan is Ethereum… 2.0.”

Whether this statement holds true or not remains to be seen.


Images: Shutterstock

Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Tim Falk

A freelance writer with a passion for the written word, Tim loves helping Australians find the right home loans and savings accounts. When he's not chained to a computer, Tim can usually be found exploring the great outdoors.

Was this content helpful to you? No  Yes

Related Posts

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Privacy & Cookies Policy and Terms of Use, Disclaimer & Privacy Policy.
Ask a question
Go to site