Ethereum Fundamental Analysis Ethereum 2.0 Roadmap and Price Predictions

Ethereum 2.0 Price Prediction and Fundamental Analysis

In this article, we list the best Ethereum 2.0 price predictions. 

Also, 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 cryptocurrency.

Readers can expect to find information on what Ethereum 2.0 is and what are top predictions for ETH’s price.

If you are interested in more cryptocurrency price predictions, see our page with all our Bitcoin and crypto price predictions

What is Ethereum 2.0 and Casper Protocol?

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 based on the staking amount. Instead of hash power, ETH rewards are based on the staking process. The rationale behind this is that the more stake you have in the protocol, the more interested are you in that the mining is performed correct.

Thus, the more of Ethereum you own the more transactions you can validate. This will increase your chance´to receive block rewards for it.

 

If you dont have enough Ether´s (Minimum 32 Ether) to create a validator yourself, you can always go to staking pools. Binance staking is one of those and they will probably add Ethereum staking, once the PoS is implemented.

Casper Protocol

Casper is the new Proof of Stake consensus engine that will replace the current Proof of Work engine in Ethereum 2.0. 

Casper will be delivered via the Beacon Chain (read more about the Beacon chain below), which will be the system chain of Ethereum 2.0.

Ethereum 2.0 on Youtube

Below is a great explanation of Ethereum 2.0, if you prefer video format over the text format provided in this article.

Ethereum 2.0 Design Goals

There are 5 important design goals for Ethereum 2.0

  • Decentralization
  • Resilience
  • Security
  • Simplicity
  • Longevity

Decentralization means that more can contribute to the network and the aim is to avoid only a few decentralized validators of the network. 

Resilience against large portions of the network goes offline. 

To secure the network Ethereum 2.0 will allow for a large participation of validators in total and per unit time. 

A high focus have been simplicity, even at the cost of efficiency. 

Ethereum 2.0 will prepare to be quantum proof by longevity.

Ethereum 2.0 in 3 Phases and Roadmap

The Ethereum 2.0 upgrade will go through three phases from then end of 2020 to the end of 2021.

Phase 0 – Beacon Chain

The Beacon chain is the new Proof-of-stake blockchain Ethereum 2.0 aim for. The Beacon chain will coordinate the whole system and can been seen as the heartbeat that keeps the system alive.

The key function of the Beacon Chain is to manage the proof-of-stake protocol for itself and all of the shard chains.

The Beacon chain has some major responsibilities:

  • To manage validators and their stakes
  • To nominate the chosen block proposer for each shard at each step
  • To organise validators into committees to vote on the proposed blocks
  • To apply the consensus rules
  • To apply rewards and penalties to validators
  • To be an anchor point on which the shards register their states to facilitate cross-shard transactions.

Phase 0 is planned to launch during 2020.

 

Phase 1 – Shard Chains

With Shard chains large blocks can be broken down into smaller blocks. By doing so, blocks can be processed in parallel, rather than sequential. This will let the Ethereum network to achieve maximum efficiency.

As you might understand, shards must be able to transact between one another, and to reference each other’s data. This will necessitate communication between the various shards on the network.

At Devcon 2018 in Prague, Ethereum co-founder Vitalik Buterin explained sharding in the following way:

“Imagine that Ethereum has been split into thousands of islands. Each island can do its own thing. Each of the islands has its own unique features and everyone belonging on that island i.e. the accounts, can interact with each other AND they can freely indulge in all its features. If they want to contact with other islands, they will have to use some sort of protocol.”

Phase 1 is planned to launch during 2021.

 

Phase 2 – State Execution

During Phase 2 for Ethereum 2.0 the functionality of the entire system will start to come together. The Shard chains will transit from simple data containers to a structured chain state and Smart Contracts will be reintroduced.

How will Ethereum 2.0 Affect the Ether Price?

The big question for a coin price prediction, will the Ethereum 2.0 upgrade have any impact on the ETH price? 

Lets go through the last large upgrade and see what happened to the Ether price at that time.

Constantinople Upgrade and Price analysis

Constantinople was a hard fork scheduled to take place on January 16, 2019 at Ethereum block number 7,080,000. However, due to security vulnerabilities discovered in the final phases of testing forced Ethereum developers to postpone the deployment until block 7,280,000, scheduled to arrive on February 28, 2019.

The upgrade included several changes to make the blockchain more efficient and pave the way for a move to Proof of Stake.

Below, there is a screenshot from Coinmarketcap on the price of Ethereum.

As you can see, the short term impact of the Constantinople upgrade was negligible. The long term impact was a large increase in price. However, its impossible to say, whether or not, that price increase was due to the upgrade or not.

 

Ethereum 2.0 Price Predictions Constantinople Upgrade and Coinmarketcap screenshot

Ethereum 2.0 Pros and Cons

Ethereum 2.0 Pros

  • There will be lower network fees
  • There will be faster transactions
  • There will be more secure transactions
  • You can earn Ether by staking

Ethereum 2.0 Cons

  • One risk you need to be aware of if you are about to stake is “slashing”. Slashing means that the algorithm penalizes you for not acting in the interests of the network. This could happen even if your intention was good. 
  • Another risk of you should know of is the missing liquidity. For example, if your ether holdings are tied up in stake you cant get out if there is a sudden market crash.

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.

Ethereum 2.0 Price Prediction - CryptoCoinTrade

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.

if you are interested in trading Ethereum you should read our blog posts about the best Ethereum trading platforms.

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