Ethereum Fundamental Analysis Ethereum 2.0 Roadmap and Price Predictions

Ethereum 2.0 Roadmap, Proof of Stake Release Date, Price Analysis

Ethereum 2.0 Roadmap and Price Predictions

In this article, we tackle a question many crypto traders ask – what will happen to ETH price after Ethereum 2.0? Here, we provide Ethereum 2.0 roadmap and price predictions for the second largest digital coin. 

Through fundamental analysis, we delve deeper into the previous events, current development efforts, and future predictions. Readers can expect to find information on what is Ethereum 2.0 and what are top predictions for ETH’s price.

What is Ethereum 2.0?

It goes without saying that development within the coin’s network is an important factor when doing price analysis. As a crypto trader, changes done with the cryptography can impact transactions and the ecosystem. This is doubly true for popular cryptocurrencies such as Ethereum. With an overall market cap of $26 billion on June 6th, changes to its algorithm coding can really impact how the market views the coin.

Putting it down in simple terms, Ethereum 2.0 is a project of (finally) moving the ETH’s ecosystem towards Proof-of-Stake (PoS). Currently, the network operates through Proof-of-Work (PoW) algorithm, meaning that miners compete to add blocks to the ETH blockchain. At this point, it is a testnet, meant to tackle all challenging aspects of the transfer. The main objective of the Ethereum 2.0 is to improve scaling and security features that ETH offers.

PoS seeks to eliminate mining competition by implementing an algorithm for block awards. Instead of hash power, ETH rewards are based on the wealth and slightly on luck for “miners.” Instead, miners would become “forgers” that would verify payments within the system. Casper protocol is set in place to keep hackers away by controlling the network in terms of protocol adherence.

Thus, the more of Ethereum you own and transactions you validate – the more of a chance that you will receive block rewards for it.

Ethereum 2.0: More than Proof-of-Stake

However, Ethereum 2.0 is a bit more than just a movement towards PoS. Additional upgrades include:

  • Sharding (cutting down a large database into smaller, more manageable pieces)
  • eWASM (faster code execution)
  • Plasma & Raiden (off-chain solutions that handle huge amounts of transactions)

It is important to notice that there are many other ideas flowing. Ethereum’s dev community makes decisions on how Ethereum 2.0 might look like in the future. As such, they might add other improvements as time passes by.

The main goal is to improve the transactional system that blockchain currently has. It would speed up transfers, enhance smart contracts, and ultimately, enlarge the user base. Thus, if implemented, the Ethereum 2.0 project can have quite an impact on Ethereum’s price, at least in theory. Crypto price predictions are, admittedly, quite hard to make.

So far, most of the large development plans came to fruition, with Constantinople hard fork being the last successful implementation of changes. The said update created uproar within the market, as participants debated over its potential consequences over the ETH’s network. The same can be said for Ethereum 2.0, as the movement towards a PoS system created quite many controversies. Interestingly, Ethereum 2.0 is not a novelty concept, as the talks over its concept started out a few years ago.

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Ethereum 2.0 Roadmap

The start of the project in 2015 is finally seeing its final stages approaching. The overall roadmap of Etehreum 2.0 defined stages upon which the network would improve:

1) Frontier (initial network build)

2) Homestead (2018 improvements)

3) Metropolis (Byzantium and Constantinople hard forks)

4) Serenity (final stage of improvements – PoS, Sharding, and others)

Currently, we are at Serenity stage, with testnet launched on May 7th. The timeline of the project completion is set to be somewhere between the years 2019 and 2021. However, it all comes down to devs and other participants to implement the changes. Thus, there is no set deadline for Ethereum 2.0 to occur. If all sides agree on the proposal, the change will take place.

How will Ethereum 2.0 Affect the Ether Price?

In the case of Constantinople hard fork in January 2019, the market did respond. However, the price growth was not as volatile as some analyst believed, judging from the CoinMarketCap’s chart below.

Ethereum Fundamental Analysis: Ethereum 2.0 Roadmap and Price Predictions

To provide a proper background, in December 2018, Ethereum devs announced that Constantinople hard fork will occur in Mid-January 2019. As the countdown went by, ETH’s price stopped following Bitcoin’s for a few days just before the expected launch. However, once it became apparent that the hard fork will not occur, all price prediction came to naught. Ethereum continued to mimic Bitcoin’s movement, growing and falling much like all other altcoins.

What can we conclude after this episode and does it provide possible situations that market will be after the Ethereum 2.0 implementation? The answer is – very little. Constantinople and Ethereum 2.0 have significant differences in the impact they can create. Additionally, the timing is quite important. During the last month, the overall crypto market experienced a growth of approximately $110 billion across all digital coins. Bitcoin led the pack, inevitably influencing Ethereum as well.

Yet, the future movement might change its direction from being bullish towards trends that are more bearish. Bitcoin is known to push markets alongside its runs practically since its establishment. Thus, its influence is an important factor for technical analysis.

Ethereum 2.0 is a move that would fundamentally change the network. As such, it can either increase the support for ETH’s system or hurt it, depending on how market participants will react. Thus, it is important to list out possible pros and cons of implementing fundamental changes within the network.

Ethereum 2.0 Advantages from Price Point

Sharding, eWASM, and Plasma can really speed up transactions and make blockchain network much more efficient than ever before. Increasing the number of transactions per second can push many traders to hold the coin and transfer it around exchanges for very low fees instantly. Individuals that previously did not participate in the market through mining would become forgers instead. As a result, the number of Ethereum coin holders would rise.

PoS would also push quite many investors to purchase coins and hold them in their wallets to receive block awards. As a result, the price would definitely go up, as the supply stabilizes. PoS validation of payments would be much faster as well. All of these can inevitably add value to the Ethereum’s blockchain network and to the coin itself if the market reacts positively to the changes.

Ethereum 2.0 Disadvantages from Price Point

Although many view Ethereum 2.0 as a next-gen move, it does come with potential issues. Holding coins instead of mining power might trigger large investors to become whales instead. They would hold the coin and seek to acquire, even more, driving liquidity down.

Additionally, miners are admittedly not too happy about the movement. So far, they successfully blocked the PoS movement by voting down the said changes. With power struggles, Ethereum 2.0 might take quite a long time to finalize. It all depends on market participants’ stance. If they support miners – Ethereum would suffer and so shall its price.

Again, we need to stress the importance of long-term analysis. Current TAs may not provide adequate results in the future due to the fact that crypto markets are very volatile. Additionally, earlier milestones may not play out again in the case of Ethereum 2.0. The situation changed for the general adoption quite a bit, while a number of trades and daily volume consistently growing over the years.

Top 5 Ethereum 2.0 Price Predictions

So far, many crypto influencers took their stance on what Ethereum’s price can possibly be in the near future. Most have a positive outlook for the crypto, with prices ranging from bullish ($500 per ETH) to moonish ($100,000).

Joseph Raczynski – Bullish $1,200 Prediction

Founder of Joe Technologist.com, a tech consulting firm, Joseph Raczynski remains to be quite positive regarding the Ethereum’s future. Moreover, he predicted that 2019 will be the year where the digital coin will hit the $1,200 mark. He stated that the ETH network has one of the largest developer communities in the crypto world since its concept is quite popular.

He added that institutional investors are quite interested in the proof of concept algorithm, which can only benefit ETH’s price. Lastly, with most dapps using Ethereum’s technology, he believes that new development, especially with Ethereum 2.0, the price will soar in 2019.

Ian McLeod – Moderate $500 Prediction

Whereas Raczynski thinks Ethereum will be quite bullish, Ian McLeod takes an approach that is a bit more moderate. The technology expert from Thomas Crown Art believes that digital coin will hit the $500 mark by the end of 2019. The development currently in works can help the coin break into the unstoppable momentum starting this year.

 At the same time, he also believes that Bitcoin will suffer as a result of Ethereum’s growth. Namely, the crypto leader will lose up to 50% of its market share, handing it over to ETH. However, it all depends on how fast Ethereum 2.0 can deliver and how the market will react in the future.

Nigel Green – Very Bullish $2,500 Prediction

The CEO of the deVere Group, Nigel Green predicted that Ethereum will reach a $2,5000 price milestone by the end of 2019. The owner of the financial consulting firm basis his take on the possibility of a large number of traders that would invest in ETH. With the incoming PoS change, he believes that such a move would bring about decentralization to the network.

Increased number of transactions and smart contracts can ease up the movement of the coin between exchanges. Thus, a greater number of traders would be actively pursuing Ethereum investments, driving the price up.

Trading Beasts – Moderate $650 Prediction

We love to hear predictions made by successful traders and their take on the cryptocurrencies’ price movements. Trading Beasts, a successful coin trader and influencer stated that Ethereum might reach $650 level by the end of the current year. The development can free up many investors to pick up coins directly, rather than into mining equipment. As seen from the site’s price analysis in the table below, ETH is poised to grow steadily.

Ethereum Fundamental Analysis: Ethereum 2.0 Roadmap and Price Predictions

 

Source: Trading Beasts

As such, a large number of transactions can occur, driving the price up. Additionally, if Ethereum 2.0 changes are massively accepted, the price can surge even further – towards $908.

Brian Schuster – Moon is the Limit $100,000 Prediction

Many predictions are positive but Brian Schuster from Ark Capital LLC. tales a step further in his prediction. In what many might believe to be an exaggeration, the owner of venture capital firm predicted that Ethereum will hit $100,000 per coin. Interestingly, he also mentioned that 2019 might not be the year for the historic growth. Thus, he spreads his prediction across the following five years.

Brian Schuster believes that smart contracts, dapps, and Ethereum 2.0 combined can bring about a revolution to the crypto space. With investors pouring money into the ETH network, PoS might help the coin’s growth until 2024.

Our ETH Price Prediction

Although we can all agree that $100,000 mark is next to impossible to reach, other predictions are quite possible. Ethereum is poised to grow if improvements are met by a positive response from the market. “Positive” is a crucial word here, since miners might not dig these changes.

Additionally, historical data shows that Bitcoin led the pack despite various improvements in blockchain networks. It single-handedly forced the entire market into a bull or bear movements and still does so today. Thus, it is hard to predict what price level ETH might hit in the future.

Nevertheless, faster transactions, fair market power share, and increased speed of coding can help the coin grow. Yet, it remains to be seen whether ETH can hold the value for a prolonged period of time.

Conclusion - Top 5 Ethereum Price Predictions

In this guide, we presented Ethereum 2.0 roadmap and price predictions from top five influencers in the crypto space. Suffice to say, the improvements can bring a lot of attention to the project, driving the price up quite a bit. Influencers’ predictions age form moderate $500 to moonish $100,000, all depending on the market’s response.

Thus, we can conclude that Ethereum’s future looks bright. The question remains on just how bright will it be.

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See: The Best Litecoin Halving 2019 Price Predictions

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