Ethereum coin among paper currency
Source: pixabay

Why Is Ethereum Going Up, and When Will It Hit $10,000?

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Sep. 1 2021, Published 6:56 a.m. ET

Ethereum is going up and you might be wondering why. At above $3,500, Ether has gained about 50 percent in the past 30 days and almost 400 percent since the beginning of 2021. Many investors are eager to see Ether hit $10,000. Here's Ethereum's price prediction.

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The Ethereum blockchain supports smart contracts and has become popular with developers building DeFi apps and creating NFTs (non-fungible tokens). The Ether token powers transactions on the platform. Solana and Cardano are some other crypto projects seeking to become the next Ethereum.

Why is Ethereum going up?

Ethereum’s latest spike comes after a software bug caused a fork in the blockchain, causing some investors to sell in panic and the crypto to fall. Ether is now rising as bulls take advantage of the pullback and accumulate the token.

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eth
Source: CoinMarketCap

A major reason for Ether's surge in 2021 has been excitement over DeFi and NFTs. Ethereum hosts many DeFi products and NFT marketplaces. DeFi products' adoption is increasing as people seek better alternatives to traditional financial services. Investor Kevin O'Leary of Shark Tank even predicts DeFi apps will replace financial intermediaries in a few years.

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Meanwhile, art collectors continue to pour millions of dollars into NFT purchases, boosting sales for NFT platforms such as Axie Infinity, CryptoPunks, and Art Blocks. Moves in the space by soccer star Lionel Messi and credit card company Visa have stirred more interest in NFTs.

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Is Ethereum a good long-term investment?

If you’re looking to get exposure to the DeFi and NFT boom, Ether is definitely worth adding to your crypto portfolio.

Ethereum is undergoing a system overhaul, shifting from an energy-intensive PoW (proof-of-work) model to an energy-efficient PoS (proof-of-stake) mechanism. That shift will significantly reduce Ethereum’s climate impact and is expected to encourage more funds to invest in Ether. Therefore, demand for Ether is anticipated to rise, in turn lifting its price.

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Some are speculating that Ethereum will overtake Bitcoin as it shifts from PoW to PoS. Ethereum’s scalability and support for smart contracts give it some advantages over Bitcoin.

When will Ethereum hit $10,000?

Ether needs to rise 25 percent to get back to its all-time high of about $4,400 reached in May 2021, and about 190 percent to reach $10,000. If Ether keeps its current momentum, it could hit $10,000 before the end of 2022.

Ether's price prediction for 2022

Ether has hit multiple peaks in 2021, averaging monthly gains of 50 percent. Assuming Ether gains just 10 percent per month, it could surpass $10,000 in 2022 and reach $300,000 by 2025.

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