Ethereum Price Target for 2022 Cut Again But New Highs Still In Play - Survey

Source: Adobe/Alvaro

 

The price of ethereum (ETH) might reach a new all-time high of USD 6,872 in 2022 before correcting to USD 5,783 by the end of the year, according to a once again less optimistic average estimate by a panel of fintech & crypto industry players. 

At 15:26 UTC, ETH traded at USD 2,825 and was up 1% in a day. The price dropped 18% in a month and is now down 4% in a year.

ETH is likely to surpass its previous all-time high of roughly USD 4,900 by approximately USD 2,000 driven by “the Merge” - which will supposedly make Ethereum more energy-efficient, secure, and deflationary, a survey of 36 fintech and crypto specialists by comparison site Finder showed.

“The Merge, an upgrade to Ethereum, should happen this summer. This could have an explosive effect on the token. People have been waiting for this for years. It should be far more secure, 99% more energy-efficient, and deflationary. If that isn't the trifecta of potential, as a leading blockchain, I don't know what would be,” surveyed technologist and futurist Joseph Raczynski was quoted as saying. 

However, as reported, The Merge might not happen this summer and now is estimated in a "few months after" June.

Meanwhile, Martin Fröhler, CEO of Morpher, gave his highest short-term ETH price target of USD 10,000, stating that "Ethereum will undergo the equivalent of 3 Bitcoin halvings with its Merge update. Ether will become a deflationary asset yielding 5–10% APY [annual percentage yield]."

Despite the enthusiasm, the panel’s optimism for short-term price movements of ETH has cooled down as the same survey conducted by Finder at the start of 2022 predicted ETH price to hit USD 7,609 in 2022.

The key reasons for the slightly less bullish price outlook for ETH were growing competition in the decentralized finance (DeFi) space, scalability, and lack of long-term confidence in the network.

“Ethereum is at a very uncertain place in its journey at the moment. It is currently losing DeFi market share to its competitors (although it still remains dominant by a huge margin). Until Ethereum upgrades its systems and fulfills its promises to scale, I do not have long-term confidence in the network. That being said, I still think people will buy the token out of hype/promise/potential. I don't think ETH will be the #2 asset forever though,’ said Keegan Francis, global cryptocurrency editor at Finder. 

At the same time, John Hawkins, senior lecturer at the University of Canberra, pointed out that "ether (and other non-stablecoin) crypto prices seem to fairly mindlessly follow the BTC price and seem to be part of a common speculative bubble."

Overall, the survey respondents were quite divided on the Merge’s impact on ETH price, as 44% were unsure if it is going to result in a much anticipated ETH supply shock.

Nevertheless, the panelists still expect the price of ethereum to surpass USD 10,000 by the year 2025 and USD 20,000 by 2030 and only 6% of them thought that now is a good time to sell ETH.

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