By Alicia Maher
The past couple of weeks has witnessed a surge in the price of Ethereum as it reached a high of $3,470, the highest price level attained since the first week of January.
Using the recent price jump as its forecast, the crypto community in CoinMarketCap, which has a historical accuracy of 80% in predicting future prices of digital tokens, has projected that Ethereum will begin at the end of the month trading at an average of $3,769. The forecast has garnered 32,950 votes from its community.
The future estimated price points to a $288 increase for the DeFi asset, whose current market value is $3,479. During the same period, total votes of 20,447 from community members targeting the end of May set a lower price level by suggesting that the ETH would trade at $3,653.
Considering the previous results of the community’s projections in the past six months, the community has an accuracy rate of 79.83% in its latest Ethereum price forecast.
Price Analysis for Ethereum
At the moment, the trading price for Ethereum is $3,479, which is an increase of 6.24% in the past 24 hours and an impressive 11.09% across the previous week, as revealed by CoinMarketCap data.
As it stands, ETH’s total market valuation is $418.5 billion. The enthusiastic crypto community is bullish on the prospects of Ethereum due to its ongoing network scaling aimed at upgrading the platform to a full Proof of Stake operator. The upgrade to the PoS protocol is believed to be the last final missing link to bring the Ethereum network to enviable heights.
The launch of the Merger testnet is a worthy development that the network has made because it signaled the last testnet necessary for the proposed move to the PoS protocol.
Observers are in anticipation of the benefits that the PoS move will have on the price of Ethereum because it will reduce the cost of transaction fees on the network, which has been a cause of concern for the community and has been identified as a significant drawback.
Is Ethereum Looking to Become Collateral?
A senior commodity analyst at Bloomberg, Mike McGlone, noted that the demand for Ethereum is increasing during a supply decline. As a result, Ethereum’s price is expected to rise as it can be used as the “internet’s collateral.”
According to the Bloomberg analyst, as Ethereum continues to consolidate its position in digital finance, further price appreciation is expected to follow suit. Ethereum is currently the denominator for non-fungible tokens (NFTs) and the primary choice for tokenization by the industry.
McGlone further stressed that this dual role played by Ethereum placed it on the pedestal of an influential digital asset that the industry can look up to to provide a more leading role in digital finance and service delivery.
It is equally essential that the industry provides the necessary support for Ethereum to play a significant part in digital finance development as far as performance is concerned.
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