How is the price of Ethereum set?

How is the price of Ethereum set?

Like all assets, price is a combination of supply and demand. Market buyers and sellers determine the price of Ethereum by bidding each other. If there use to beadditional buyers than sellers, the valuerises. If more sellers than buyers are there, the price will descend. This system worked well for Ethereum, because the price has soared thousands of percentage points during its existence.

The problem with the price ethereum is that the news about cryptocurrencies in general has a huge impact on the price. Normally, positive news will have a positive impact on the price, but negative news will have a negative impact on the price. This problem is also seen in other cryptocurrencies such as Bitcoin.

Ethereum price prediction

An important factor for the value of Ethereum is the launch of Ethereum 2.0. The second version of this blockchain should be released sometime in 2020. Ethereum 2.0 will present new structuressuch asProof of Stake (PoS), sharding, and eWASM. This means the end of mining and the beginning of ETH staking. The new practicalities will bring exciting possibilities for both developers and users. Investors have high hopes for the new and improved version of Ether.

What should you know about the Ethereum value?

Ethereum is, like other cryptocurrencies, very volatile and is not suitable for classical traders. The cryptocurrency, looking at past trends, has high peaks and deep lows. This is because a big player (whale) can influence the price with a single order. Every major Ethereum owner who sells a large amount of their Ether can have a huge price impact. All large investors like institutional investors who decide to invest in Ethereum can highly affect the price. Although most big traders trade through OTC markets, the price is still volatile.

How to invest in Ethereum?

In expert knowledge base you can find useful information on how to invest in cryptocurrencies and the articles can help you make decisions about your investment. Please take into account the risks involved in an investment and decide for yourself if your financial situation allows you to invest in Ethereum.