The total cryptocurrency market capitalization has been on a downward trend since January of this year. The aggregate market cap hit a yearly low of $186 billion last month, down from its January peak of $831 billion. Bitcoin, on the other hand, has consolidated above the $6,000 threshold, and has bounced up on several occasions throughout the year. The overall market has seen a bearish pattern hold due to a general lack of confidence in the market, combined with increased regulation pressure. Other altcoins, especially Ethereum, are losing value fast and are generally not doing that well. Massive liquidation of cryptocurrency for fiat currency is driving the prices of most crypto down.

In this downward trend of prices, Ethereum has been particularly affected as it has been massively sold off this year. Tetras Capital, a research company, warns that Ethereum will continue on a bearish trend triggered by the prolonged cooling off period from the ICO phenomenon in 2017. Furthermore, many of those companies that raised funding through Ethereum are now converting their Ether holdings into fiat currency. Due to this, Ethereum was briefly ousted by Ripple as the second largest cryptocurrency in the market last month. Ripple managed to acquire a total market cap of $22.2 billion which was higher than Ethereum’s 22.1 billion market cap at the time.

Vitalik’s Remarks

Last month during an interview with Bloomberg, Vitalik mentioned how he believed that the days of 1,000 times cryptocurrency gains are long gone. He pointed out that cryptocurrency and blockchain awareness was near saturation point and that chances were that the average person had some knowledge on crypto and blockchain. He further added that the surprise element that fuelled the massive growth of the crypto market was slowly being erased. He diminished any hopes of another massive bull rally (like what we witnessed in 2017) ever taking place in the future. Vitalik insisted that now was the time to focus on developing real applications of blockchain and crypto rather than on marketing.

Of course, the crypto-community wasn’t going to take this lying down. Vitalik received harsh criticism from investors, especially those who have invested heavily into the sector and are eager to see the return of massive gains. He was criticized for his lack of understanding in economics and cryptocurrency price movements. Vitalik was quick to respond and clarify that he did not mean that there was no room for growth. Instead, there was no room for 1,000 times price increases as those experienced in 2017. He further stated that he was a victim of media, something that Binance CEO Changpeng Zhao reiterated in his tweet.     

ConsenSys and Ethereum

ConsenSys, the largest blockchain software company owned by Ethereum co-founder Joseph Lubin, recently announced its success of supplying renewable electricity to a few clients in Texas. Through the integration of a unique gateway system and the Ethereum blockchain, the company has managed to distribute renewable power from sources such as wind and solar. Through the use of a function known as Smart Agents, clients can purchase and sell electricity in real-time. The buying and selling process is now decentralized, and customers now have more control than they initially did with traditional utility companies.     

Ethereum Price Analysis

According to data acquired from CoinMarketCap, Ethereum prices at the beginning of September 2018 opened the market at $283.50. Later on, it hit a high of $301.14 and a low of $283.50. It closed the day at a price of $295.34 with a market capitalization of $28.82 billion. In the middle of the month, on the 15th of September, the cost of Ethereum opened the market at a value of $209.81. It proceeded to hit a high of $226.60 and a low of $209.61. It eventually closed the day at an amount of $223.07 with a market cap of $21.39 billion.

At the end of September, the Ethereum price opened the market at a value of $231.33. It then proceeded to hit a high of $236.99 and a low of $228.45. It closed the market at a price of $232.85 with a market capitalization of $23.65 billion. The current market price of Ethereum as of the 4th of October, stood at $225.06 with a market capitalization of $23.03 billion and a supposed 24-hour trading volume of $1.65 billion.

Ethereum Positive Price Predictions

  • Steven Nerayoff

Steven Nerayoff, a co-creator of Ethereum, estimates that the market capitalization of Ethereum will increase to $110 billion. That’s three times the current market cap of ETH. According to Steven, this considerable increase in Ethereum’s market cap will to a large extent be fuelled by the increasing number of products being built on the ETH blockchain.  

  • Andrew Keys

Andrew Keys, co-founder of ConsenSys Capital, predicts that the price of Ethereum will exceed $2,000. He argues that Bitcoin’s dominance in the cryptocurrency market will eventually come to an end. He states that Ether will continue to rise in popularity while Bitcoin falls due to governance issues, high fees, and reluctance to change.

  • Alexis Ohanian

Alexis Ohanian, a Reddit co-founder, predicts that the price of Ethereum will rise to a cost of around $1,500 by the end of the year. Alexis further stated that he expects the price of Ethereum to continue growing throughout 2019 and 2020. He also openly told people to correct him if he is wrong on his predictions.

  • deVere Group

Consulting firm deVere Group predicts that the price of Ethereum will rise to around $2,500 by the end of 2018. The firm believes that increased use of the platform will lead to the massive Ethereum price jump. The firm also expects the value to rise further in 2019 and 2020.

Negative Price Prediction

  • Joseph Rubin

Joseph Rubin, a BTC core developer, and Stellar advisor predicts that the Ethereum price is headed to $0. He argues that Ethereum is losing track and soon ETH as a digital asset will become worthless. He further contends that it’s possible for miners to by-pass the need for gas by selecting a digital asset of their choice. This, in turn, will render Ethereum useless in the long-run.

  • Matthew De Silva

Matthew De Silva, a cryptocurrency journalist, remains pessimistic about the future of Ethereum prices. After Ethereum prices crashed to $179 last month, the journalist offered his insight into what the next Ethereum prices would be. Matthew argues that Ethereum has reached its natural state which he claims is close to zero.  

  • Tim Enneking

Tom Lee predicted that the price of Ether will hit $1,900 by the end of the year. However, Tim Enneking, the Managing Director of Digital Capital Management, argues otherwise. He states that there are no longer any incentives to drive the price of Ethereum 40% above its prior all time high price.

  • Joe DiPasquale

Joe DiPasquale, the CEO of BitBull Capital, holds the same pessimistic opinion as Tim Enneking. Reacting to Tom Lee’s price prediction of $1,900 by the end of 2018, Joe states that he doesn’t believe that Ethereum will hit a price high of $1,900 in just three months.

  • Marius Rupsys

Marius Rupsys also reacted to Tom Lee’s price prediction by stating that there’s a minute possibility for Ethereum to hit $1,900. He argued that the current price of Ethereum is around $200 and to make it to $1,900, Ethereum would need to grow eight times more in just three months. The chances of such a high demand materializing is little.  

Conclusion

Despite recent price dips of Ethereum and the whole cryptocurrency market, the blockchain innovation wheel is still in rotation. More start-ups are popping up on the scene offering innovative ways of leveraging blockchain. Incumbent industry players are also realizing the potential disruptive power that blockchain provides to most industries and are seeking ways to maximize on it. It’s clear that blockchain technology and Ethereum will continue to change the world around us, explicitly helping reshape the future of digital assets. We invite you to check out our blockchain-based BCMY digital wallet and what value it can provide for your digital assets.