Should I Buy Ethereum - Is Ethereum a Good Investment in 2023?

Ethereum remains the world’s second-largest cryptocurrency, meaning many investors often ask themselves: should I buy Ethereum now? As the pioneer of smart contract technology and decentralized applications (dApps), Ethereum has become a foundational piece of the crypto space.

However, analysts tend to be divided on whether ETH’s price will rise or fall in the long term. With that in mind, this guide analyzes Ethereum’s potential for future years, examining what experts think about its prospects and exploring how investors can buy ETH today using a regulated platform.

Should You Buy Ethereum?

With Ethereum still one of the most talked-about cryptocurrencies, a common question that crypto enthusiasts ask is: Is Ethereum a good investment? As with any investment, buying ETH involves substantial risks. This is because ETH’s price has proven highly volatile and can drop sharply when sentiment turns bearish.

However, Ethereum also has significant potential upsides. For example, it benefits from strong brand recognition and an extensive developer community. At the time of writing, there are over 4,300 decentralized applications (dApps) on Ethereum, with new ones added each week.

Moreover, upgrades like “the Merge” have boosted enthusiasm for Ethereum’s future scalability and sustainability. If Ethereum can continue cementing itself as the go-to smart contract platform for developers, especially in the ever-growing world of decentralized finance 2.0 (DeFi), demand for ETH may surge.

Ultimately, deciding is it a good time to buy Ethereum comes down to each investor’s personal risk tolerance and belief in the network’s long-term potential. If Ethereum can continue gaining mainstream adoption while warding off competition from the likes of Cardano and Solana, then its upside possibilities may make it an enticing prospect for risk-tolerant investors.

How Ethereum Has Performed Between its Launch & 2023

Ethereum’s journey began in 2013 when it was first proposed by Vitalik Buterin, a programmer and contributor to Bitcoin Magazine. After describing the concept of Ethereum in a whitepaper, Buterin debuted the network at a conference in Miami in January 2014.

During the conference, Buterin partnered with Gavin Wood, Charles Hoskinson, and Anthony Di Iorio, who became co-founders. In July 2014, Buterin and Co launched a crowdfunding campaign that ended in September 2014, raising over $18 million in the process.

The Ethereum Foundation, a non-profit governing the project, was also formed in 2014. Following this, the network underwent development for an entire year before going live for the first time on July 30, 2015.

Ethereum’s initial supply was 72 million tokens, and in the early days of its launch, ETH traded for under $1. It wasn’t until eight months later, in March 2016, that ETH started to gain significant traction – surpassing the $10 milestone for the first time.

Over the years that followed, Ethereum went from strength to strength and hit a high of $1,396 during the bull run of early 2018. However, this high was short-lived, and Ethereum’s value plummeted for most of 2018, along with the rest of the crypto market.

In December 2018, ETH’s value bottomed out at around $77 and went into an extended consolidation phase for almost two years. Then, in late 2020, Ethereum finally broke out and went parabolic, along with Bitcoin and other major cryptos. This bull run eventually led to ETH hitting a high of $4,643 in May 2021 – then its all-time high of $4,891 in November 2021.

Unfortunately for ETH bulls, the token fell dramatically from this high and experienced significant price fluctuations in the following years. Throughout most of 2022, the crypto market was stuck in a bearish trend, with Ethereum’s price briefly dropping below $1,000 in June 2022.

However, Ethereum achieved a significant milestone in September 2022 when the developers completed “The Merge,” transitioning to a Proof-of-Stake (PoS) blockchain and reducing the network’s carbon footprint. This colossal upgrade didn’t have a big impact on ETH’s value, and the token has continued to face volatility throughout the majority of 2023.

What is a Proof-of-Stake blockchain?

Proof-of-Stake (PoS) blockchains allow network users to validate transactions and create new blocks by “staking” existing tokens (e.g., ETH) as collateral. This is significantly different from Proof-of-Work (PoW) blockchains, like Bitcoin, which rely on miners to solve complex math problems to create new blocks.

At the time of writing in October 2023, ETH is hovering around the $1690 level, 65% lower than 2021’s all-time high. The token continues to be affected by changing sentiment within the crypto market, along with the risk-off nature of investors due to the high-interest-rate environment.

Given this context, “Is now a good time to buy Ethereum?” is a question that has received various responses from analysts and investors alike. We’ll look at this question throughout this article, touching on factors like Ethereum’s technology, the crypto market sentiment, and the regulatory landscape.

Ethereum Timeline – Key Points

Ethereum network officially launched in July 2015
ETH hits the $10 level for the first time in March 2016
Ethereum’s value bottomed out in December 2018 and traded sideways for almost two years
ETH hit its all-time high of $4,891 in November 2021
Ethereum completed The Merge upgrade in September 2022

What Factors Determine the Price of Ethereum & its Potential?

When pondering the question of “Is Ethereum worth buying?” investors must consider the factors that can potentially impact the price of ETH. Listed below are some of the key factors to consider:

Crypto Market Sentiment

When researching will Ethereum go up or not, one of the major factors that investors need to consider is the overall sentiment of the crypto market. If the market buzz is positive, more investors jump on the bandwagon and buy ETH – pushing its price higher.

However, if there’s bad news, such as a major regulatory change or significant blockchain hack, investors may panic and start selling their crypto holdings, causing price to drop. This can then have a snowball effect, leading investors to look for what could potentially be the next Ethereum.

A widely used market sentiment indicator is the Crypto Fear & Greed Index from Alternative.me. This index measures how people feel about the crypto market using various data points, providing a sense of the market’s mood at a given moment.

dApp Developer Activity

The level of developer activity in regards to building dApps on Ethereum can also impact ETH’s price trajectory. If developers continue to choose Ethereum as the go-to network for launching innovative dApps, demand may surge for ETH, as users would require tokens to use these dApps.

However, if competing chains begin offering exciting dApps, blockchain users may use them instead. This would impact demand for ETH negatively, so it’s crucial for Ethereum to remain the go-to hub for Web3 developers in the long run.

Regulatory Landscape

The legal status and regulation of Ethereum could significantly impact ETH’s price in the future. For example, if a country decides to ban or restrict the use of cryptocurrencies, it would drastically reduce the liquidity of ETH in that region.

However, this can also work in the other direction. If a country adopts a supportive stance towards cryptocurrencies like Ethereum, it could boost liquidity and demand – potentially positioning it to be the next cryptocurrency to explode.

What is the importance of crypto market regulation?

Those wondering, “Should I buy Ethereum?” must understand the reasons for crypto market regulation. Broadly speaking, regulation aims to do three things:

Provides investor protection by enforcing rules around security, transparency, and reducing fraud
Creates standards that crypto-focused businesses must follow
Helps integrate cryptocurrency into the mainstream finance system through compliance with existing regulations

Competition from Other Blockchains

Another factor that could affect the ETH price is competition from other layer-1 blockchains. For example, rival chain Solana has shown itself capable of handling up to 65,000 transactions per second (TPS) with far lower fees than Ethereum’s.

If chains like Solana can draw developers away from Ethereum, it could negatively impact the price of ETH. This is because the demand for ETH would naturally be lower than if the development activity was at its peak.

Demand from Institutional Investors

Finally, is investing in Ethereum a good idea can often be determined by what institutional investors are doing since they typically have a significant impact on ETH’s value. For example, if a prominent investment firm or publicly traded company starts investing in Ethereum, it’s usually viewed as a sign of confidence in its future.

This can lead to increased demand from retail investors and, as a result, a boost in ETH’s price. However, on the flip side, if these institutional investors opt to sell their Ethereum holdings, it could signal skepticism about ETH’s prospects – potentially driving the price down.

Ethereum Price Forecast for 2023, 2024, 2025, 2030

Like all cryptos with the highest potential, Ethereum has been the subject of intense speculation and debate, especially regarding its future price. In this section, we’ll delve into Ethereum’s price forecast for the years ahead, discussing how technological advancements and regulatory changes could impact its value.

ETH Forecast for 2023

Is it a good idea to buy Ethereum in 2023? Given the recent bearish conditions, it’s difficult to predict ETH will rise much higher than its current price before the end of the year.

However, if ETH can sustain itself above the 50-day Exponential Moving Average (EMA) on the daily time frame, there’s scope for optimism. Should this scenario occur, a return to the $2,000 level could be a target before the year is out.

ETH Forecast for 2024

Is investing in Ethereum a good idea in 2024? Predicting the future of Ethereum in the years ahead is inherently speculative, but there are several factors to consider – the main one being crypto market regulation.

If the SEC adopts a more favorable regulatory framework for cryptocurrencies, it could increase institutional investment in Ethereum, potentially driving up its price. Assuming this scenario plays out, then a potential 2024 target for ETH could be the $3,600 level.

ETH Forecast for 2025

Unlike the best shitcoins and meme coins, Ethereum has built-in utility that extends far beyond short-term gains. This utility will play a pivotal role in sustaining ETH’s value over the longer term – with the DeFi sector likely to continue its rapid growth into 2025.

If Ethereum’s developers can continue scaling up the network’s technology, it could make it the go-to blockchain for “traditional” financial organizations looking to move into the Web3 space. As a result, there could be a sizable increase in demand for ETH – potentially pushing the token’s value to the $5,000 milestone by the end of 2025.

ETH Forecast for 2030

Lastly, is Ethereum still a good investment over the long term? One of the main factors playing into Ethereum’s long-term prospects is institutional interest – specifically, the potential approval of spot ETH ETFs.

At the time of writing, no spot ETH ETFs have yet been approved by the SEC, yet major firms like Invesco have filed for such products, indicating a growing institutional interest in Ethereum. If the SEC does green-light one of these ETFs, it would be a watershed moment for ETH – meaning a price target of $10,000 isn’t out of the question for 2030.

Ethereum’s Utility – How Could it Be Used in the Future?

The best long-term crypto projects all feature valuable use cases and built-in utility that help boost demand – and Ethereum is now different. Presented below are six innovative ways that ETH could be used in the future to enhance its value even further:

Decentralized Finance (DeFi)

One of the most promising avenues for Ethereum’s future utility lies in the world of decentralized finance (DeFi). Many of the best crypto 2.0 coins are involved in the burgeoning world of DeFi, which has become increasingly popular for those seeking an alternative to centralized systems.

Hundreds of DeFi platforms are now built on the Ethereum blockchain, enabling automated loans, token swapping, yield farming, and more. Unlike many traditional systems, DeFi protocols tend to have low fees and minimal barriers to entry, thereby making their services accessible to everyone, regardless of where they are in the world.

Tokenization of Real-World Assets

Tokenization refers to turning a real-world asset into a tradable token on the Ethereum blockchain. For example, someone may wish to tokenize a painting they have created, enabling them to sell fractions of the painting to multiple investors. This way, the painter can quickly raise funds while allowing people to access their art for a fraction of the price.

For those wondering, “Is Ethereum a good investment?” tokenization represents another promising avenue for ETH’s value growth. Several platforms now offer this service; however, none have yet hit the mainstream, meaning this could be another high-growth area in the years ahead.

Supply Chain Management

Supply chains are complex systems that involve numerous parties – yet by implementing Ethereum’s blockchain technology, companies can create transparency and unchangeable records of transactions. In turn, this can reduce supply chain inefficiencies and eradicate the chance of fraud occurring.

Should you invest in Ethereum due to its potential in the realm of supply chain management? Answering this question will depend on each investor’s risk tolerance level and belief that “traditional” companies may wish to transition to the blockchain. However, given the transparency and efficiency that this setup could have, there’s a growing belief that Ethereum may become more widely used in this regard.

Decentralized Autonomous Organizations (DAOs)

As defined by Ethereum.org, a decentralized autonomous organization is a collectively owned, blockchain-governed organization working towards a shared mission. This means that, rather than being run by humans, DAOs are run by smart contracts.

Every decision, whether that be fund allocation or new use cases, is made by token holders voting in a transparent system. As such, DAOs could revolutionize how organizations are run, making them more democratic and less susceptible to corruption.

Blockchain Gaming

Another way that Ethereum could be used in the future is within the gaming industry. Blockchains like Ethereum have the potential to transform this industry, enabling secure and quick in-game transactions, as well as the creation of non-fungible tokens (NFTs) for digital items.

Moreover, blockchains enable “micro-transactions,” which allows game developers to tell in-game items like power-ups at low prices without losing profit. This paves the way for a more dynamic gaming experience while bolstering revenue streams for developers.

Blockchain Gaming Market – The Current Landscape

The global blockchain gaming market is expected to be valued at over $301 billion by 2030.
Key trends within the industry include high-quality AAA games entering the market and increased integration of NFTs.
The Asia-Pacific region dominates the blockchain gaming market, accounting for 26% of the market share in 2022.

Digital Identities

Finally, Ethereum could also be used as a way for users to manage their digital identity. This means users can store their data on the blockchain, allowing them to maintain control over who can access it.

For example, prospective students could create a blockchain-based identity with their academic credentials and provide it to colleges and universities. Since this identity can be verified instantly, it streamlines the entire process and is mutually beneficial.

Is Ethereum a Better Short-Term or Long-Term Investment?

Should you invest in Ethereum short-term or long-term? This is a challenging question to answer since there are merits to both approaches, which we’ll explore below.

For short-term traders, Ethereum can provide opportunities to profit from volatile price actions over days – or even hours. On average, ETH’s price is more volatile than most stocks, with daily movements of 5-10% in either direction not uncommon.

Often touted as one of the most profitable crypto coins to day trade, Ethereum presents possibilities for experienced traders to time their entries and exits and generate short-term gains. However, risk management is critical since mistimed Ethereum trades can often lead to abrupt losses due to the token’s volatility.

On the longer time horizon, a buy-and-hold strategy may fit investors who believe Ethereum could become the backbone of DeFi and Web3 for years to come. According to Statista, revenue in the DeFi market is expected to reach $34.7 billion by 2027, and Ethereum looks poised to capture a significant portion of this market.

However, this approach requires strong conviction in Ethereum’s roadmap and the ability to scale effectively despite rising competition and an uncertain regulatory environment. As such, investors may need to stay up-to-date with the Ethereum network’s development and issues in the broader crypto market.

Importantly, for those researching is Ethereum worth buying, neither short-term nor long-term approaches are risk-free. While active traders can undoubtedly profit from Ethereum’s price swings, poor entries, and exits can be costly. Additionally, long-term investors face uncertainty regarding Ethereum’s ability to maintain its first-mover advantage as more scalable networks enter the blockchain space.

In summary, Ethereum can present gains for both short-term and long-term investors. However, determining which approach is best depends largely on individual circumstances. Regardless of the chosen investment horizon, investors must conduct extensive research and educate themselves on the intricacies of the crypto market before making a buying decision.

What Expert Traders Say on Whether You Should Buy Ethereum

Answering “Should I sell my Ethereum?” should involve analysis of various perspectives, including those of expert traders and market analysts. With that in mind, let’s take a look at what four well-known crypto personalities have to say about Ethereum’s prospects:

1. Crypto World

Crypto World, a popular YouTube channel with over 139,000 subscribers, recently speculated that Ethereum is close to a breakout. Based on a daily price chart, Crypto World notes that Ethereum is exiting a crucial resistance zone to the upside, potentially paving the way back to April’s high.

However, will Ethereum go up to this level or not is complete speculation at this point. ETH still has a minor resistance zone around $1,750 to break, which has proven to be a challenging obstacle in the past.

2. Virtual Bacon

YouTuber Virtual Bacon released a video in mid-September that went semi-viral. Virtual Bacon laid out his hypothesis in this video for why he thinks ETH could hit $10,000 by 2025.

Two main catalysts Virtual Bacon pointed to back up his prediction are ZK-rollups and “danksharding” – which could significantly boost Ethereum’s security and scalability in the years ahead.

3. Coin Bureau Clips

For those wondering, “Should I sell my Ethereum?” a recent analytical breakdown from Coin Bureau Clips may change your mind. In this breakdown, the presenter, Guy, boldly predicted that ETH may go to $50,000 by 2030.

Guy’s prediction is based on the idea that a significant portion of commercial activity will move to the blockchain in the next few years. With Ethereum being the leading platform for smart contracts and dApps, it stands to gain hugely from this shift.

4. Altcoin Daily

Lastly, Altcoin Daily was also bullish on Ethereum’s prospects in a recent video, forecasting that ETH will be valued at $50,000 in the next three years. Altcoin Daily pointed to the filing of spot ETH ETFs as a positive indicator for Ethereum’s future.

These ETFs could lead to greater institutional interest in Ethereum, increasing liquidity and increasing the token’s value. Like Coin Bureau Clips, Altcoin Daily also believes that Ethereum’s role as a leader in smart contracts and dApps positions it nicely for long-term growth.

Where to Buy Ethereum

When researching is now a good time to buy Ethereum, another key consideration should be the broker or exchange that will be used. There are now hundreds of online platforms allowing investors to easily buy ETH, making it challenging to narrow down the selection.

To aid with this, we’ve done the research and picked out our two recommended brokers for those seeking to add Ethereum to their portfolio today:

eToro – Widely-Respected Trading Platform with Low Fees & Huge Asset Selection

Our suggested platform for those looking to buy Ethereum safely and in a low-cost manner is eToro. eToro is an online trading platform that supports the buying and selling of 80 different cryptocurrencies, including ETH.

The platform is regulated by several Tier-1 regulators worldwide, including the FCA and FINRA, and uses advanced security measures to protect user funds and data. Additionally, eToro boasts a user-friendly interface, which makes it easy for beginners looking to buy ETH for the first time.

However, one of the main benefits of using eToro to invest in Ethereum is its competitive fee structure. eToro only charges a 1% commission on crypto trades, along with the market spread. These spreads can vary depending on the cryptocurrency and level of liquidity at the time a position is opened.

Those wondering how to buy tokens passively can also use eToro’s widely-respected CopyTrader tool. This tool allows users to automatically copy the trading activities of successful traders on the platform, providing an easy way to get involved in the market without having to be at the charts all day.

eToro also offers a dedicated crypto wallet for those wishing to safely store their ETH (and other coins). The eToro Wallet is a mobile app for iOS and Android devices, allowing users to manage their crypto holdings on the go. Featuring multi-sig protocols and private key encryption, the eToro Wallet adds an extra layer of security for those who need it.

Finally, eToro even features a comprehensive educational library, ensuring beginners aren’t left behind. These combine to position eToro as one of the most accessible and reliable platforms for buying Ethereum in 2023.

Buy ETH on eToro

Coinbase – Beginner-Friendly Crypto Exchange with Stellar Reputation for Safety

Coinbase is another popular and trusted platform for buying, selling, and managing cryptocurrencies, including Ethereum. Known for its user-friendly interface and excellent reputation for safety, Coinbase is a viable alternative for those who don’t wish to use eToro.

Firstly, Coinbase’s fees are slightly higher than most cryptocurrency exchanges. The platform charges variable fees depending on the type of transaction, along with a maker/taker fee. These can add up, especially for active traders.

However, Coinbase more than makes up for this with its level of security. The platform employs state-of-the-art encryption to protect user funds and undergoes annual audits by independent third parties. Coinbase also offers various additional features, such as two-factor authentication, biometrics, and security locks.

Coinbase also offers one of the best crypto apps on the market, providing a seamless way to buy, sell, and trade Ethereum on the go. The app is available on iOS and Android devices and offers much of the same functionality as the web platform. Crucially, the interface is sleek and clean – ensuring it is accessible to complete beginners.

Like eToro, Coinbase also offers educational content to help users learn more about cryptocurrencies and make informed decisions. Users can even access the free Coinbase Wallet app, which supports over 100,000 coins and tokens and even provides access to the decentralized web.

Tying all of this together is that Coinbase is a publicly traded company, meaning it is held to high standards of transparency and regulatory compliance. This makes Coinbase a suitable choice for those who prioritize safety when investing in cryptos like Ethereum.

Buy ETH on Coinbase

Which New Cryptos Could Be a Better Alternative to Ethereum?

Given that Ethereum is firmly established in the crypto space, some investors opt to seek out newer tokens with larger (and faster) growth prospects. Although countless tokens could fit into this category, one currently standing out from the crowd is Bitcoin Minetrix (BTCMTX).

Bitcoin Minetrix is attracting attention for its innovative “Stake-to-Mine” mechanism, which aims to make BTC mining more accessible to the masses. Users can buy BTCMTX tokens, stake them to earn mining credits, and then use them to obtain cloud mining power.

This approach removes many of the traditional barriers to entry in Bitcoin mining, like high hardware costs and complex technical systems. Moreover, it provides a clear pathway to passive income since Bitcoin Minetrix users can earn BTC and additional BTCMTX tokens through staking.

According to Bitcoin Minetrix’s staking dashboard and whitepaper, at the time of writing, yields are at 2,136% per year. Additionally, over 19.5 million BTCMTX tokens have been staked already – all while the project is still in its presale phase.

This presale has been an early hit with investors, raising over $340,000 in less than two weeks. Investors can buy BTCMTX tokens through the presale for $0.011 ahead of the exchange listings planned for later this year.

With Bitcoin Minetrix’s Telegram channel and X channel already seeing rapid growth and recent Bitcoin-style cryptos experiencing impressive price surges, BTCMTX looks well-positioned to benefit from the turnaround in crypto market sentiment. As such, many early backers believe it could represent a viable alternative to Ethereum in the short and long term.

Total Supply	4 billion tokens
Presale Supply	70%
Token Price	$0.011
Network	Ethereum
Token Type	ERC-20
Token Ticker	$BTCMTX
Minimum Purchase	$10

Visit Bitcoin Minetrix Presale

Is Ethereum a Good Investment? Our Verdict

Putting all these factors together, is Ethereum still a good investment in 2023? Several vital points are needed to provide a clear answer to this.

Firstly, Ethereum’s first-mover advantage has allowed it to build a thriving ecosystem of developers, users, and investors before any other blockchain had a chance to. Maintaining this market position will be essential for Ethereum since it plays a vital role in ETH’s value.

Secondly, with “the Merge” introducing a PoS consensus protocol in 2022, Ethereum has become more scalable than it was while using a PoW consensus mechanism. Further upgrades, like the highly-anticipated “Danksharding” system, will be vital to helping Ethereum stay ahead of the pack in this regard.

However, risks such as high gas fees and growing competition are hard to ignore. Rival chains often focus on delivering faster and cheaper transactions relative to Ethereum, so if users migrate to these platforms, it could negatively impact the ETH price.

Moreover, regulatory developments will also impact Ethereum’s price. With the SEC’s stance on cryptocurrencies still as unclear as ever, the possibility of new restrictions in the years ahead could introduce volatility into the market, causing severe price swings for ETH.

The Bottom Line

Ultimately, deciding “Should I buy Ethereum?” will come down to each investor’s level of risk tolerance. While the rewards could be great if Ethereum continues growing, it will likely continue facing stiff competition in the years ahead.

For those seeking further insight into the crypto market, check out our “Best Cryptos to Buy” page, which is regularly updated with the latest trends, data, and recommendations.

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