Ethereum price can be found on this page! Ethereum’s price rate is tracked globally in dollars. The article also contains a lot of information about the historical ETH price and the factors influencing its price movements.
Ethereum price USD & EUR
Ethereum price in euros & dollars can be found in the boxes below. Ethereum price is always up to date in them when you open this page.
Next, we’ll examine the historical Ethereum price development. You’ll also learn other useful information about Ethereum price and what factors have an influence on it.
Ethereum price development in recent years
Ethereum price development has been amazing in recent years. The entire crypto market has shot up thousands of percent and Ethereum has definitely been one of the top investments.
Ethereum became tradable on exchanges in 2015. That’s when the Ethereum blockchain was launched. In the first days, its ETH token price was slightly less than three dollars. At its worst, in 2016, Ethereum was even worth less than a dollar. Few people knew anything about Ethereum before 2017, but the ICO boom changed everything. The price of Ethereum gained thousands of new followers.
The Ethereum price started moving wildly in March 2017. It quickly rose to around one hundred dollars and all the way to 350 dollars in June 2017.
The price of Ethereum was mooning due to the massive ICO boom. Investments were mostly made by using ETH as the currency. In the summer of 2017, there was even talk of the term flippening, where Ethereum’s market cap would overtake Bitcoin to become the most valuable cryptocurrency.
The chart below shows the historical Ethereum price development in dollars.
At the peak of the 2017-2018 crypto boom, the price of Ethereum was about 1400 dollars. This happened at the beginning of January 2018. It was the endpoint of the altcoin craze that started in December 2017.
The long and dark crypto winter followed where prices of all cryptocurrencies fell for about a year. During this decline, the price of Ethereum fell well below one hundred dollars. In the summer of 2019, the Ethereum price moved to 300 dollars, but the real boom didn’t start until the fall of 2020. Ethereum did not exceed the January 2018 price peak until January 2021, i.e. almost three years later.
At the end of 2021, the price of Ethereum rose to almost 4500 dollars. This happened in mid-November. A long bear market started in December 2021 which crashed the ETH price even below the January 2018 peak. However, it’s important to notice that Ethereum didn’t crash any more than Bitcoin in 2022.
How is the value of Ethereum determined?
The value of Ethereum seems to fluctuate wildly, up to ten percent a day. However, if we forget the daily price swings, Ethereum’s value propositions can be analyzed in more detail.
Ethereum value is basically determined by supply and demand. This applies to all other cryptocurrencies as well. However, each coin has its own value drivers that depend on the nature of the cryptocurrency in question.
Ethereum is a smart contract platform. It succeeds by attracting app developers who build distributed applications (dapps). The more such apps are built, the more demand there is for ETH. This leads to a higher Ethereum price. The image below is from Ethereum.org, which has a lot of developer resources.
Technical features, such as inflation, have also an impact on the background. The more inflation there is in cryptocurrency, the more headwinds there are for the price to rise. In this sense, the price of Ethereum has received a huge boost from the Proof of Stake consensus algorithm, which we will touch on in the next chapter.
Ethereum value is also determined a lot by institutional interest. Will hedge funds and pension funds start investing more in Ethereum? This is partly influenced by the development of regulation and investment instruments.
For example, several Ethereum ETF products have already been opened to investors in Canada. Likewise in Europe. The biggest risk to Ethereum’s price development is the open regulation in the United States. However, it is unlikely that Ethereum will ever be classified as a security.
In summary: Ethereum’s value is determined by the popularity of applications built there. Reduced inflation also has a positive effect on the price. In addition to that, general market development and increasing interest from institutions are also major price drivers for ETH.
Ethereum price and Proof of Stake
In the fall of 2022, the Ethereum price received a significant boost from a technical update called The Merge. It had been awaited for years and was finished in September without any problems. Why does this update have such a big impact on the price of Ethereum?
The reason is inflation. The Ethereum price has received a headwind from the annual inflation of 3.5 percent. It’s also good to remember that the ETH token doesn’t have a fixed supply. This is the case with many other cryptocurrencies as well.
With The Merge update, Ethereum moved to Proof of Stake consensus and out of mining. At the same time, the supply of new ETH tokens decreased significantly and will soon decrease so much that the amount of Ether in the market starts to decrease. This means deflation.
The image below shows a simulation of Ethereum’s inflation after The Merge update.
As you can see, inflation has fallen to the level of 0.004 percent. Normally, more than a million new ETH would have entered the market by this time. Now only 1200 ETH has been added to the supply (87 days after Merge). It is easy to understand how the Ethereum price has been positively affected by this.
Within a couple of years, millions of Ether tokens have not entered the market. The Ethereum price may well be hundreds of percent higher than it would have been with the old system.
Proof of Stake also brings another positive advantage over mining. In the PoS system, validators lock their ETH coins out of the market, which reduces the supply further. Ethereum’s price will therefore get a lift from this feature as well.
Any Ethereum investor should be happy right now. The fundamentals have never looked better! Learn more about Ethereum and its features from our Ethereum beginner’s guide.
ETH price vs. competitors
The ETH price is monitored by most in dollars, but perhaps there is a better comparison. Perhaps the most important metric is the ETH price vs. BTC. This means the relationship between the top two coins in the market. Why is this currency pair so important?
It all boils down to the basics of altcoin investing. The point of all altcoin investing is to find coins with faster price development than Bitcoin. In other words, if you invest in Ethereum, the ETH price vs. BTC graph should move towards the upper right corner.
Historically, altcoins have always been considered a weak investment in a bear market, but 2022 has proven otherwise. ETH has been one of the best performers on the market. In addition, many other smart contract platforms have been surprisingly strong compared to Bitcoin.
The chart below shows the ETH / BTC price ratio.
The price of ETH has risen more than 20x compared to BTC in its history. The first major rally was during the 2017-2018 bull market. This resulted in a period of decline, but Ethereum has risen steadily since mid-2019 and multiplied its value compared to Bitcoin.
It is also good to compare the ETH price vs. other smart contract platforms such as BNB Chain, Solana, and Avalanche. If there is another coin better than Ethereum in the Layer 1 sector, is it perhaps worth adding to the portfolio as well?
Ethereum price in 4 years
Ethereum price in 4 years – how high can it be? This is an interesting question for sure. It is thought of equally by beginners and professional investors. On a general level, it must be said that making crypto price predictions is really difficult.
There is no functional modeling of Ethereum’s price development at the moment. However, we know that the Ethereum price in 4 years will depend on three important factors:
- Development of the stock market
- Development of the crypto market
- The Ethereum 2.0 update
At the time of writing the article, we are living through the crypto bear market of 2022. It is clear that crypto and stock markets go hand in hand more than previously thought. The liquidity of the Fed and other central banks is vital for the price development of Ethereum. Ethereum price needs a tailwind from the stock market and the central banks in order to make major moves.
This is where we get into the crypto market. If stocks have a bull market or a bear market like in 2022, cryptocurrencies will follow. Ethereum cannot hold its own against the rest of the market.
In addition to this, it is important to catch up with Ethereum’s technical updates. In the fall of 2022, the long-awaited The Merge update went through without a problem, which quickly dropped Ethereum’s inflation to zero or even minus. There are other important updates already in the pipeline for 2023.
It is likely that the Ethereum price will be much higher in 4 years than it is now. But how much higher? Even if the Ethereum community succeeds in implementing all its plans perfectly, the ETH price still needs support from the wider market as well.
Our prediction is that the Ethereum price will rise to more than 10,000 dollars in four years.