Ethereum (ETH) Will Cost $500 in the Short Term, and $5K in the Long Term

Ethereum (ETH) Will Cost $500 in the Short Term, and $5K in the Long Term

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Hype connected with the launch of Ethereum 2.0 triggered a large number of predictions from both serious analysts and armchair ones. Popular trader Crypto Michael announced on his Twitter account (63.4K followers) that he expects ETH price to be in the $5K – $10K range in the long term.

According to a trader on the Amsterdam Stock Exchange, soon, it will be ETH that will show the maximum volatility (“a heavy rollercoaster ride”), and traders will have the opportunity to get rich.

As for the short term, Crypto Michael is confident that ETH is already in an uptrend due to the launch of Ethereum 2.0 and will cost $500 shortly.

Interest in Ethereum 2.0 is growing rapidly. It looks like a deliberate Pump&Dump scheme if Vitalik Buterin’s reputation wasn’t so strong. Vitalik has never hidden that he aims to change ETH blockchain from the original Proof of Work (PoW) consensus to the Proof of Stake (PoS) algorithm. This prevents the network from miners’ influence and generally eliminates mining as it is.

Buterin believes that it is the staking model, that is, the storage of cryptocurrency on user accounts, that makes the blockchain stable, scalable, and fast. It is estimated that the transaction speed will grow 70 times to 1000 TPS, leaving bitcoin far behind. The ETH blockchain transition to PoS occurs in stages. The recent forks (or updates) of Byzantium and Constantinople were held with great hype. A stage called Serenity implements Ethereum 2.0. The most impatient users expect the launch already on July 30, when Ethereum will celebrate its first anniversary (5 years). But Buterin denied these rumors and said that Ethereum 2.0 is scheduled by October. Although somebody from his team stated that the deadline is pushed to 2021.

Staking, which will replace mining, also generates income. But not for everyone who holds ETH in their accounts. To join staking, you need to have at least 32 ETH on your account. A significant part of the community is ready for staking – since the beginning of the year, the number of addresses where the required amount is stored has grown by 15% to over 120K.

The profitability of staking depends on the number of participants; the limits of profitability are announced from 1.8% to 18% per year. Given the high volatility of cryptocurrencies, this is not a cool investment. In terms of scaling, Ethereum 2.0’s metrics are also so-so. Recently, a fork of bitcoin Bitcoin SV (BSV) reportedly showed a speed of 1300 TPS and 6400 TPS at peak. So Buterin may be building an outdated blockchain. This means that forecasts for the rise of ETH by 20-40 times maybe just a fantasy.