Ethereum price prediction 2018: Is it too late to buy? | finder.com
ethereum-prediction

Ethereum (ETH) price prediction 2018

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.

What does the future hold for the value of Ethereum (ETH)? We’ve explored some possibilities here.

Ethereum is a decentralized blockchain platform on which decentralized applications (dapps) can be built. It allows developers to create smart contracts, which automatically execute tasks when specific conditions are met, and runs using a cryptocurrency token known as Ether.

As the world’s second-largest cryptocurrency after bitcoin (BTC) in terms of market capitalization at the time of writing, Ethereum has attracted plenty of attention around the world. However, before deciding whether or not you should buy any ETH, it’s essential that you fully understand the factors affecting the value of this cryptocurrency and what they could mean for the price of ETH in the weeks and months ahead.

Learn more Where to buy Ethereum (ETH)

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Quick facts

Ethereum

Coin nameEthereum
SymbolETH
Algorithm typeEthash
MineableYes
Launch dateJuly 30, 2015

Ethereum price prediction

Cryptocurrencies have a well-deserved reputation for volatility, and a look back at a graph charting the performance of ETH over the past year will show substantial fluctuations. With this in mind, it’s extremely difficult to make an accurate prediction of where the price of Ethereum or any other cryptocurrency is headed in the future.

However, what we can do is take a closer look at the factors working for and against the potential growth of a cryptocurrency. This will help you form a clearer understanding of the risks of buying digital currency and how the price of Ethereum will change in the coming weeks and months.

What could drive Ethereum’s growth?

  • Use cases. Ethereum’s supporters have pointed to its many potential real-world use cases as factors that could drive growth. The platform allows developers to build and deploy dapps across a diverse range of industries, including everything from shipping and logistics to token systems, banking, file storage and reputation systems.
  • Dapps. There is already a large number of dapps that have been built and deployed on the Ethereum network. These include worldwide supercomputer Golem, prediction markets tool Augur, exchange and payment platform OmiseGo and decentralized cloud platform Storj. The success (or otherwise) of such dapps will be an important factor determining ETH’s price, as will the creation of new applications on the platform. Not only can they add to the credibility of the Ethereum platform, but there’s also the fact that creating and deploying dapps requires the purchasing of ETH.
  • ICO popularity. The Ethereum platform is a popular choice for startups launching ICOs, many of which allow users to purchase new tokens using ETH, potentially increasing demand for ETH.
  • Accessibility. Ethereum is the world’s second-most traded digital currency and is easily available on a wide range of crypto exchanges. This makes it easy for investors to access and increases Ethereum’s credibility in the eyes of those outside the crypto community.
  • Casper and other upgrades. At some stage in 2018 or 2019, Ethereum will shift from a proof-of-work to a proof-of-stake model under the Casper upgrade. It will also implement other solutions designed to make the network more scalable, such as “sharding” (explained further down this page). If these upgrades achieve the desired results, this could help Ethereum to continue to grow by better equipping it to handle increased transaction volume.
  • Commercial partnerships. The Enterprise Ethereum Alliance aims to connect Fortune 500 enterprises, startups, academics and technology vendors with Ethereum subject matter experts. Its list of members includes a host of big names, including Microsoft, BP, JP Morgan, ING, Intel, Credit Suisse and Santander.
  • Supply. There is no cap on the total supply of Ethereum, with a maximum annual issuance of 18 million ETH per year. This means ETH’s relative rate of inflation decreases every year and is designed to eventually stabilize and reach an equilibrium. However, the annual issuance rate following the implementation of the Casper update is expected to be much lower.

What could hold Ethereum back?

  • Competitors. Ethereum will face competition from an increasing number of alternative smart-contract platforms. Ethereum Classic (ETC), NEO (NEO), Stratis (STRAT), Lisk (LSK) and Waves (WAVES) are just some of the competitors you’ll need to consider when comparing platforms.
  • Scaling issues. While Ethereum’s popularity is a good thing for its proponents, it has also produced a range of problems as the platform has struggled to cope with increased traffic. This has caused slower transaction times and higher processing fees, though there are plans in place to overcome these obstacles.
  • Smart-contract security concerns. Vulnerabilities in the code of Ethereum smart contracts have led to several incidences of hacking, so security will be an ongoing concern for anyone using the platform moving forward.
  • Increased regulation. Reports of threatened crackdowns on cryptocurrencies by governments around the world could potentially have a negative impact on the price of all digital currencies.
  • Dodgy ICOs. Some critics have suggested that the launch of unsuccessful or scammy ICOs on Ethereum could affect public perception of the platform and negatively impact its widespread adoption.

Where to buy Ethereum

Name Product Deposit methods Fiat Currencies Supported Cryptocurrencies
Bank transfer
Credit card
Debit card
Bank transfer (SEPA)
USD, GBP, AUD, EUR, INR, ARS, BRL, CAD, CNY. NZD, DKK, HKD, ILS, JPY, KES, CHF, MXN, NOK, PHP, PLN, SGD, SEK, AED
BTC, LTC, ETH, BCH, BAT, DASH, BTG, XRP, VOX
Buy, send and convert more than 35 currencies at the touch of a button.
Cryptocurrency
BTC, XRP, USDT, ETH, NEB, XVG, TRX, NEBL, ETH, NEO, FUN, ETC, BCC, POE, DASH, ELF, ICX, BNB, ZRX, APPC & 80+ more
Trade an extensive range of reputable coins on this world-renowned exchange, popular for its high liquidity and multi-language support.
Credit card
Debit card
AUD, USD, EUR, GBP, CAD, CNY & 50+ more
BTC, BCH, ETH, LTC, ETC
Get US$10 in free bitcoin when you buy US$100 or more of any crypto. T&Cs apply.
Buy and sell 5 major cryptocurrencies on one of the world's most renowned cryptocurrency exchanges.
Cash
Credit card
Debit card
Bank transfer (SEPA)
USD, EUR
BTC, ETH, ETC, BCH, LTC, ADA, QTUM, XRP
Buy coins like Bitcoin, Ethereum, Ripple, Litecoin and Bitcoin Cash with credit card.
Credit card
Cryptocurrency
Debit card
Bank transfer (SEPA)
SWIFT
USD, EUR, RUB, GBP
BTC, DASH, ETH, XRP, ZEC, XLM
Use your USD, EUR or RUB to buy and sell cryptocurrency at competitive exchange rates and with high maximums for verified accounts.
Cashlib
Credit card
Debit card
Neosurf
USD, EUR, GBP, JPY, CNY, KRW, AUD, CAD, DKK, NOK, SEK, TRY, HKD, SGD
BTC, ETH, XRP, DASH, LTC, BCH, ETC, OMG, ZRX, CVC, BNT
Buy cryptocurrency with cash or credit card and get express delivery in as little as 10 minutes.
Cryptocurrency
MoneyGram
OKPAY
PayPal
Perfect Money
Western Union
USD, EUR, RUB
BTC, ETH, LTC
Buy and sell crypto and other digital currencies on this global fixed-rate exchange.
Bank transfer
Credit card
Cryptocurrency
Wire transfer
USD, EUR, JPY
BTC
With options to buy bitcoin and popular altcoins through credit card, wire transfer and more, BitfFyer offers users the choice of paying with cryptocurrency or USD, EUR and JPY.
Coinbase Pro
Bank transfer (ACH)
Bank transfer (SEPA)
Wire transfer
USD, EUR, GBP
BTC, BCH, ETH, LTC, ETC
Formerly known as GDAX, Coinbase Pro is a US-based exchange which offers fiat currency payment options, including wire transfer, ACH bank transfer and SEPA.
Kraken Cryptocurrency Exchange
Electronic Funds Transfer
Bank transfer (SEPA)
Wire transfer
USD, EUR, GBP, JPY, CAD
BTC, BCH, ETH, ETC, XMR, DASH, LTC, XRP, XLM, REP, ICN, MLN, ZEC, USDT, GNO, EOS
Exchange multiple cryptocurrencies through a range of payment methods, including Electronic Funds Transfer, SEPA or Wire Transfer.
Bithumb Cryptocurrency Exchange
Cryptocurrency
Wire transfer
KRW
BTC, BTG, BCH, DASH, ETC, LTC, EOS, XRP, ETH, QTUM, TRX, ICX, VET, XMR, ZEC, MITH, WAVES, WTC, ITC, LINK
A global platform where users can make KRW and cryptocurrency deposits to purchase up to 15 popular cryptocurrencies.
Bitstamp Cryptocurrency Exchange
Debit card
Credit card
Cryptocurrency
Bank transfer (SEPA)
Wire transfer
AstroPay
USD, EUR
BTC, BCH, LTC, ETH, XRP
A global cryptocurrency exchange that facilitates crypto to fiat transactions, where you can use EUR or USD to buy bitcoin and popular altcoins.
Bittrex Digital Currency Exchange
Cryptocurrency
Wire transfer
USD
BTC, ETH, XVG, SC, XRP, DOGE, STRAT, XMR, ADA, OMG, ETC, BCC, XLM, DGB, UKG, QTUM, ZCL, RDD, LTC, NEO, XRP, TRX, ZEC & 120+ more
Buy from one of the largest cryptocurrency exchanges with a selection of over 190+ cryptocurrencies and 3 USD pairings.
Poloniex Digital Asset Exchange
Cryptocurrency
-
BTC, ETH, XRP, DOGE, XLM, ETC, STRAT, LTC, SC, DGB, BCH, LSK, XMR, LOOM, BAT & 50 more
Trade various coins through a global crypto to crypto exchange based in the US.
Gemini Cryptocurrency Exchange
Electronic Funds Transfer
Wire transfer
Cryptocurrency
USD
BTC, ETH
Trade bitcoin and Ethereum at a US-based exchange where payments can be made in USD.
YoBit Cryptocurrency Exchange
AdvCash
Cryptocurrency
Payeer
Perfect Money
USD, RUB
BTC, BTG, DASH, ETH, LTC, DOGE, WAVES, LSK, BCC, TRX, ABYSS, PAC, ZEC, XVG, EOS, ETC, RDD, TOKC, B2X, TTC & 400+ more
Pay in USD, RUB or trade crypto to crypto at this Russian-based cryptocurrency exchange with hundreds of coins listed.
KuCoin Cryptocurrency Exchange
Cryptocurrency
-
BTC, BCH, DAG, ETH, XRP, EOS, LTC, ADA, TRX, NEO, ONT, STEEM, BTM, BCD, ZINC, VET, OLT, NUSD, LOC, ZEN & 50+ more
Browse a variety of coin offerings in one of the largest multi-cryptocurrency exchanges and pay in cryptocurrency.
HADAX (Huobi Autonomous Digital Asset eXchange)
Cryptocurrency
-
BTC, ETH, 18T, BUT, LXT, CDC, UUU, AAC, CNN, UIP, UC, GSC, IIC, MEX, EGCC, SHE
Owned by the team behind Huobi.pro, HADAX lets users vote for cryptocurrencies it should list.
Mercatox Cryptocurrency Exchange
Cryptocurrency
Payeer
Perfect Money
Yandex Money
USD, EUR, RUB
BTC, XRB, ETH, DCN, BCH, NIO, TRX, DASH, COB, DOGE, PRIX, DSR, XCPO, LTC, VERI, LOC, NUA, PKT, PPT, ICO & 80+ more
Supporting over 100 coins, you can exchange a variety of cryptocurrency pairs on this peer-to-peer platform.
Bleutrade Cryptocurrency Exchange
Cryptocurrency
-
BTC, BTG, DASH, ZET, XVP, XPM, WDC, VTC, VRC, UNO, TROLL, START, SLR, SLG, RDD, QTUM, PPC, POT, OK, NVC, NMC, NLG, NEOS & 25+ more
Trade an array of cryptocurrencies through this globally accessible exchange based in Brazil.
Credit card
Debit card
USD, EUR
BTC, BCH, ETH, XMR, ZEC, DASH, XRP, ETC, LTC, DOGE, XLM,1ST, ADX, AMP, ANT, BAT, BCN, BNT, BTG, CFI, CVC & 70+ more
Access competitive crypto-to-crypto exchange rates for more than 35 cryptocurrencies on this global exchange.
Cancoin P2P Crypto Exchange
Cash
PayPal
Western Union
SWIFT
Flexepin
Gift Cards & more
CAD, USD
BTC, ETH
Buy and sell bitcoin with privacy on this multi-signature, peer-to-peer exchange that supports a wide range of payment options.
Cryptonit Cryptocurrency Exchange
Wire transfer
OKPAY Bank transfer (SEPA)
Advance Cash
EUR, USD
BTC, ETH, ETC, ZEC
Cryptonit is a secure platform for trading fiat currency for bitcoin, Litecoin, Peercoin and other cryptocurrencies which can be delivered to your digital wallet of choice.
Cryptopia Cryptocurrency Exchange
Cryptocurrency
-
BTC, BCH, ETH, LTC, DOGE, NEO, XMR, POWR, DASH, PIVX, XEM, OMG, GNT, ZEN, NRG & 500+ more
Buy and sell hundreds of cryptocurrencies with minimal verification on this all-in-one, New Zealand-based exchange.
ShapeShift Cryptocurrency Exchange
Cryptocurrency
-
BTC, BCH, BTG, ETH, ETC, FUN, 1ST, ANT, BAT, BNT, BLK, CVC, CLAM, DASH, DCR, DGB, DNT, DOGE, EDG, EOS, FCT, GAME & 25+ more
A global exchange where no account is needed to begin trading cryptocurrency to cryptocurrency.
BigONE Cryptocurrency Exchange
Cryptocurrency
-
BTC, ETH, EOS, OMG, USDT, ADX, AE, AIT, ATN, ATT, BAT, BCDN, BIG, BTM, BTO, CANDY, CDT, CHAT, AT, CPS & over 60+ more
A crypto-to-crypto exchange listing over 100 pairings and low trading fees.

Compare up to 4 providers

Read our step-by-step guide to find out more about buying Ethereum.

What’s coming up in Ethereum’s roadmap?

To get a better idea of what the future holds for Ethereum, we also need to take a look at the projects and upgrades scheduled for completion in the Ethereum roadmap.

Perhaps the biggest update due to arrive at some stage in 2018-2019 is Ethereum’s switch from a proof-of-work platform to a proof-of-stake algorithm. Known as Casper, this update aims to improve transaction processing times and reduce transaction fees on the Ethereum network.

It will also make Ethereum miners redundant and replace them with “stakers”. These users will stake their ETH tokens in special wallets and receive dividends from network fees based on how much ETH they stake.

However, Casper is still in development, so whether or not it achieves its aims remains to be seen.

There are also a couple of other key updates planned for the future. Speaking at BeyondBlock Taipei in November 2017, Ethereum inventor and co-founder Vitalik Buterin outlined his vision for the future of Ethereum. As well as the shift to proof of stake, Buterin mentioned other improvements scheduled for the Ethereum network, including:

  • Sharding. This process involves dividing the blockchain into several smaller component networks, allowing transactions to be processed in parallel and therefore increasing Ethereum’s processing speed.
  • Smart-contract security. In order to address security concerns surrounding smart contracts, Buterin announced that Ethereum will eventually introduce formal verification for smart contracts. A new smart-contract programming language, Viper, is also being developed to allow for the creation of safer applications.

Ethereum’s competition

In the crowded cryptocurrency market, Ethereum will also face competition from a variety of other blockchain projects. The performance and development of those competitors could have positive or negative implications for the value of ETH.

Some of Ethereum’s main competitors include:

  • Bitcoin (BTC). While bitcoin and Ethereum serve two fairly different functions, the two are often compared to one another due to the fact that they are the world’s two largest cryptocurrencies. It’s also worth pointing out that the price performance of bitcoin has often had a significant effect on the value of other cryptocurrencies.
  • Ethereum Classic (ETC). This open-source blockchain platform is actually based on the original Ethereum code and was born in 2016 following the infamous The DAO hack and a subsequent disagreement within the Ethereum community.
  • NEO (NEO). Often referred to as the Ethereum of China, NEO is a blockchain platform for the development of digital assets and smart contracts. It’s also one of the world’s top 10 cryptocurrencies in terms of market cap.
  • Stratis (STRAT). A software platform written in C# and .Net, Stratis aims to offer a blockchain integration solution for businesses.
  • Lisk (LSK). Based on JavaScript, Lisk aims to make it simple for developers to build and deploy blockchain applications.
  • EOS (EOS). Designed as a platform for the creation of scalable dapps, EOS aims to offer a user-friendly interface that provides ease of accessibility to blockchain technology for everyone. It also regularly features in a list of the top 10 cryptocurrencies by market cap.
  • Waves (WAVES). Waves is a blockchain platform that allows its users to issue their own cryptocurrencies and build applications.

Beyond 2018: What does the future hold for Ethereum?

In the next 12 months, the main focus for Ethereum will be on solving the problem of scalability. If this can be successfully achieved, the project is well placed to seek out further growth opportunities in the future. Having earned itself a strong position in the crypto sphere thanks to the many potential real-world uses for its technology, not to mention partnerships with some big players in the corporate world, Ethereum looks like a digital currency with plenty of potential.

However, whether or not those scaling issues can be overcome remains to be seen, while there’s also the fact that there are plenty of alternative smart-contract platforms that will battle Ethereum for market share. Ongoing upgrades and continuing development are needed to help the platform rise to the challenge thrown down by the competition.

Bottom line

Cryptocurrencies are complex and highly speculative, and buying any form of digital currency comes with a high level of risk. It’s essential to understand and appreciate those risks before making any purchases.

Ethereum’s myriad potential use cases in the real world make it a project many are watching with great interest, and the battle to solve scalability issues to improve transaction speeds and lower fees will be crucial.

Competition from other projects could also play a part, though at the aforementioned Taipei blockchain conference in November 2017, Ethereum co-founder Vitalik Buterin seemed unconcerned about potential threats from competitors, saying, “The Ethereum killer is Ethereum, the Ethereum of China is Ethereum, the Ethereum of Taiwan is Ethereum … 2.0.”

Whether this statement holds true or not remains to be seen.


Images: Shutterstock

Tim Falk

A freelance writer with a passion for the written word, Tim loves helping people find the right products for them. When he's not chained to a computer, Tim can usually be found exploring the great outdoors.

Was this content helpful to you? No  Yes

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Privacy and Cookies Policy and Terms of Use.
Go to site