Ethereum Price Prediction
Ethereum is commonly linked with the Bitcoin, but the actual working of Ethereum is far beyond the base of Bitcoin and the initial generations of the decentralized system.In this blog, we are going to discuss on what is Ethereum, how it works and what is Ethereum price prediction.
As a beginner, it might be difficult to differentiate between Bitcoin and Ethereum because both of the platforms use the technology of blockchain as the base software.
If we go back to the primary stages, it was relatively difficult to work on the blockchain technology due to the application complexities in coding, and system of cryptography. But now things have become unimaginably easier because only a few technical resources are needed for establishing the trading platforms and even electronic voting system.
What is Ethereum?
Ethereum is the software platform based on the blockchain technology and aims to serve as the World’s Computer by deploying the current client-server model.
In simpler terms, Ethereum aims to position itself as the open platform which could successfully save the personal and financial information of internet users.
Currently, the big technology giants like Google and Facebook are responsible for storing our data on their servers and cloud system but the rapid increase in the software malfunctioning have started to worry the programmers.
Ethereum platform wants to increase the safety of client data by eliminating the chances of vulnerabilities, which means that hackers and government bodies won’t be able to manipulate any information stored on the decentralized server.
Difference between Bitcoin and Ethereum
Bitcoin uses the publicly distributed blockchain network to serve as the peer-to-peer electronic banking system where ownership of the currency is tracked by using the blockchain base, the goal of Ethereum is entirely different.(Read the complete guide on Bitcoin Gambling)
Ethereum aims to use blockchain network for operating the programming codes on which third party information can be successfully stored and retrieved by the developers.
While operating the system of Bitcoin, the miners work to extract the cryptocurrency coins, but in Ethereum, the only vision of programmers is to earn Ethers so that they can freely operate on the Ethereum network.
Benefits of Ethereum:
The purpose of Ethereum is to transform the entire programming language into the form of nodes by using the feature of the complete virtual machine.
Some of the advanced benefits of Ethereum nodes are as follows:
The personal and financial information stored on the cloud servers is easily accessible by the third-parties who have the full ownership of manipulation.
But Ethereum model aims to eliminate the role of third-parties by introducing the technology of nodes which are capable of storing every type of user information by charging the processing fees.
Through the technology of nodes, the third-parties won’t be able to access the stored information because a proper verification procedure is followed for the nodes accessing purpose.
Connecting Parties through on-chain Application
The one word which can properly define the entire integration process of Ethereum is Synergy. Before the advent of Ethereum, it was difficult to bring different parties on the same page due to lack of uniformity in coding system and store of value.
Ethereum blockchain system empowers the volunteers to use the services and determine the margin of trading based on the combination of CDP system integrated with EtherEx. This system not only helps in establishing the correlation between different parties but also aims to increase the liquidity thus leading to advanced money raising process without involving KYC technologies.
Changing Business Contracts
The smart-contracts technology is getting the attention of giants like Microsoft and Google because it is capable of defining the business contracts in the easiest programming language.
The report states that companies like JPMorgan are currently developing their own Ethereum version to provide the fastest, secure and automated business platforms to different clients from different parts of the world.
The companies involved in the strategic alliance are more inclined towards the acquisition of the Ethereum platform to facilitate the easiest form of funds transfer. Thus it is clear that transactions processed through Ethereum platform are efficient and trustworthy.
Thousands of Applications on one-block chain
Before Ethereum Virtual Machine, the volunteers were supposed to use one block chain for a single application, however, the smart-contract technology backed by solidity aims to handle thousands of applications on the single blockchain.
The smart-contract helps in the independent verification step which makes the censorship impossible for any party involved in the transactions. The data stored in each blockchain is written as the permanent memory and cannot be executed with the random function of solidity.
This process reduces the overall downtime of applications in the single block chain and brings the possibility of application switching to almost zero.
Reduced Hosting Time with Full Control
The decentralized platform of Ethereum gives the full control to the authentic miners rather than third parties and to ensure the similar process, the nodes of system work on the principles of determinism in which each mined block aims to execute the command based on network consensus.
Summary of Ethereum Working
The working of Ethereum is somewhat dependent on the Bitcoin blockchain because this system takes its basic protocol from Bitcoin base but aims to integrate the agreements which could empower developers to write more programs, execute additional commands and change the rules of ownership.
It is clear that functioning of Ethereum is not restricted to the decentralized internet platform but it also aims to work as the decentralized application store which is capable of supporting differently written application programs.
Unlike Bitcoin, the processing of Ethereum is dependent on the accounts which consist of wallets and funds are stored in the wallet tokens which are further mined by using the ether mining system.
The description of Ethereum makes it clear that this system involves certain technologies which are backed by complex foundations. To successfully operate in the Ethereum environment, the developers are supposed to mine ethers so that they could pay for the maintenance resources to keep the platform functional.
Ether is the unique code sometimes also classified as the digital collateral in the form of security or bond and is used to fuel applications available on the network. In literal terms, the Ethers are classified as ‘gas’ which is used to proceed the further transactions.
According to the states, nearly 5 Ethers are created in every 12 seconds but it is impossible to give exact stats that how many Ethers will be put in the market for the next tenure.
Ethereum Price Prediction:
There are several parameters which are used by analysts for determining the upcoming trend in the Ethereum price prediction but investors should always remember that fluctuations in the blockchain and Ethereum market tend to get influenced by the overall pressure on the cryptocurrency market and how government policies are pushing the stock value.
Blockchain to Gain the Largest Market Share
The Quora community discussions make it clear that blockchain market is soon going to take over the world of credit because of the significant contribution of developers in the market.
The developer community is continuously working on introducing new verification codes
to increase the overall security thus leading to strong network effect backed by
innovation and latest protocol.
According to the May 2017 Ethereum price prediction, the sector is expected to witness
the new money plateau where the cost will be introduced in the transactions due to a
high level of development.
Chances of Market Crash:
Though major Ethereum price prediction indicate that market is expected to grow at a
higher pace but we should consider the fact that any exploits with 0 value or any sort of
attack on the network might increase the chances of network vulnerabilities thus
reducing the overall market price.
The launch of new code via Casper is expected to bring more vulnerabilities to the
market rather than the operational ones. Still, some analysts believe that prices are
expected to surge up in the near future because of highly innovative development and
continuous changes in the sector.
Expected 9% increase with probability of Downside Correction
The analysts are waiting for the Ethereum to cross the price of USD 325 which is
almost 9% higher than the prevailing market. The prediction of increase is made by using the trend analysis of the last month.
During September, the overall market witnessed the bounce of 9% thus making the
market highly attractive for the investor and current situation states that market is more
expected to go for increase with lower probability of the downsize correction but it would
be foolish to entirely trust the market tactics
The analysis of 4 hours chart between USD and Ether gives the understanding that
trend is going in the upwards direction as the support 2 channel ending its working at
USD 279 which was further backed by the baseline of 292.
Now the support channel 2 states that there is a continuously boost in the USD section
starting from 292 to USD 311 and then USD 313.
If the trend continues to follow the same pattern then it won’t be difficult for the market
to establish the cross price of USD 325 till the end of the October.
Major Influence and High, Lows in October
The increased number of a strategic alliance with the development sector has largely
influenced the overall rating of the market and is expected to leave some positive
impacts. The analysis indicates that chart is facing the continuous high low fluctuations
from the mid of September and the same trend is expected to continue in October.
The trends which were observed in August were quite satisfactory because during that
month the price cut-off was established at USD 400 which is indeed the favorable
situation for the investors.
Ethereum Price Prediction:
The continuous upward trend from the last three months helps us in making the
prediction that the price cut-off at USD 325 in October can be a very good signal for the
investors because this trend is expected to continue the progress for next quarter.
The developmental analysis states that Ethereum is gradually increasing its total worth
and is now considered as the mature sector of cryptocurrency (in comparison with the
other ones). Analysts have positive hopes from the trend because of the innovation and
alliance steps by Microsoft and other big giants.
The break of USD 325 can bring huge advancements in the sector and can boost the
entire productivity of the market. Some analysts suggest that Break of USD 325 will
increase the probability of touching the peaks of USD 400 which is indeed the strongest
boost to the market.
Turn Down Effect
The probability of turn-down effect is relatively lower but chances are still there. The factors which could trickle down the market are also connected with the dimensions of technological innovation. The launch of Casper can be a threat to the entire market because of higher chances of attacks.
According to analysts if the prices go lower than USD 270 then, it would be a huge
disaster for the market because additional three to four months would be needed to
bring the positive effect back.
Price of USD 270 is expected to go back to the USD 250 and even USD 200 under the
extreme conditions. But the overall impact of the trickle can also bring some
improvements in the sector because developers will be pouring in more expertise and
even money to bring the market at its actual profitable position.
The analysis indicates that the overall structure of the Ethereum market is attractive and
is more inclined towards the development phase. Though it is hard to ignore the trickle
effects the prevailing positivity in the market is expected to do some wonders in the
According to Quora discussions, the intensified level of expertise of developers backed
by the trust of the market can reduce the chances of system vulnerabilities to almost
zero thus increasing the overall trading margin for the investors and giving a positive
boost to the other sectors of cryptocurrency market.
If you have any queries regarding the Ethereum price prediction and its determinants
then, feel free to contact us by leaving your comments below.