It’s important to know ether’s price in real time to make solid decisions in buying and selling. As the cryptocurrency markets are open 24/7, the variation in the value of Ethereum is constant. To understand the changes in prices and before investing money to it, it’s important to know the characteristics and history of Ethereum; just as you would familiarize yourself with any other asset before investing in it.
Despite the volatility of cryptocurrencies in general, ether is one of the most stable and flexible cyrptocurrencies in the markets. Ethereum consists of its application of the revolutionary blockchain technology to a software platform that enables the creation of different decentralized applications – such as smart contracts – to be built and run without third parties. In other words, Ethereum has great ambition in decentralizing not only the trade of currencies but also many other levels of business operations. The idea to its platform actually rose from dissatisfaction to Bitcoin’s limited vision of the use of blockchain technology. Ethereum has its own cryptocurrency ether (ETH) that holds the Queen’s place next to Bitcoin. Essentially, ether is a currency with which you may buy decentralized apps that run in Ethereum, and it also is the currency that incentivizes people to run the Ethereum protocol on their computer. This creates a similar reward system to Ethereum as Bitcoin has.
We can never be 100% sure of the future of cryptocurrencies, as they’re still a relatively new phenomena in the economy: the oldest crypto Bitcoin has existed only a bit over 10 years. What we do know, is that Ethereum and other digital currencies have evidently seen strong development and growth since they were created, and together they form a true challenge to the traditional ways of finance.
Conversion from ETH to EUR and USD
Using a convertor allows you to easily calculate the equivalent price to a determined amount of ethers to euros or dollars. You may introduce the quantity of ether you have in mind for selling or buying, and select the currency to which you’d like them to be converted into.
To understand the historical financial development of Ethereum, we have listed Ethereum’s lowest prices in the past years. What would be the lowest price for this year? Make your guess in the comment section below.
1) 2015 1 ETH = 0,42 USD = 0,38 EUR
2) 2016 1 ETH = 0,95 USD = 0,87 EUR
3) 2017 1 ETH = 7,92 USD = 7,21 EUR
4) 2018 1 ETH = 83,90 USD = 76,41 EUR (historical maximum $1432,88 13/01/2018)
5) 2019 1 ETH = 102,93 USD = 90,55 EUR
6) Price of ether in 2020 1 ETH = USD? = EUR?
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Prices of Ethereum
The price of cryptocurrencies depends fundamentally in the supply and demand of the markets. There are two simple reasons which affect the sentiment of the market of ether:
- Upgrades in the platform: if the development of Ethereum’s platfrom includes improvements, the price will increase to reflect the added value. Ethereum has been going through a series of big upgrades in its platform since its creation, and the upgrades were originally divided into four main stages: Frontier, Homestead, Metropolis, and Serenity. The following stage, Serenity, will concentrate on improving the efficiency and scalability of the platform.
- Domination of Bitcoin: Bitcoin has the most influence over the value of other cryptocurrencies. If bitcoin increases in value, the value of other cryptos increase proportionally. This obviously happens in reverse, if the price of bitcoin decreases.
As in investing into any other asset, it’s important to keep yourself updated on the subject. The more information you have on your hands, the better decisions you’ll do related to trading. Increased knowledge also helps you to anticipate possible risks related to the investment. More than that, understanding the subject of the investment is essential. As cryptos are a new phenomena that a few people understand and the conversation might get very technical for the nature of cryptocurrencies, here’s an introductory video to what Ethereum really is with a nice recap of what Bitcoin and decentralized services mean.
The history of Ethereum’s value until today – analysis and graph
For the ones that don’t have time to look at the whole video, here’s a recap of the most important events in the history of Ethereum. These are mainly important events from a financial point of view, as we have left out the technological milestones of the platform:
- Mid 2014: The founder of Ethereum, Vitalik Buterin, gathers up a crowdfunding (ICO, Initial Coin Offering) of 18 million dollars. Ethereum goes into the markets with the value of 31 cents per ether (USD).
- May 2016: Ether places itself into the markets with a capitalization that exceeds 1.000 million US dollars.
- 17 June 2016: Hacker steals 3,6 million ethers, which at that point of time totalled into a value of around 70 million US dollars. Ethereum divides into Ethereum and Ethereum Classic.
- 20 June 2017: Ethereum reaches a value of $376,36, which is more than 121.400% of its initial value.
- 13 January 2018: Ethereum reaches its historical high of 1.432,88 USD per ether.
- 2019: 2019 was quite a stable year, with a slight price rally in Q2. On June 26 Ethereum reached a price of 335 USD, which is the highest price for Ethereum since August 2018.
The graph below demonstrates the price of Ethereum together with the price of Bitcoin. You can see the development of the prices from mid-2015 until January 2020.
Ethereum is an asset of high risk and high reward
In general the price of Ethereum is very volatile, as is the case with every other cryptocurrency. Here you can see how the price of Bitcoin influences the price of Ethereum; the lines are not walking hand-in-hand, but you can definitely identify similar, bigger movements the two currencies are experiencing simultaneously. Even though the year 2019 brought an enormous amount of technical advancements to the platform, price-wise 2019 was a sideways year for ETH. This highlights how cryptocurrencies are still mainly used for buying, selling and making profit out of trading, which in its turn lays more weigh to the market sentiment in relation to the price, rather than actual improvements and value added to the product or platform.
There are plenty of price speculations out there for the year 2020, with estimations going from 50 USD to more than a 1000 USD per ether. Ethereum holds its place as the most advanced and pioneering platform for smart contracts, and many have big expectations for the future applications of the technology. Share your thoughts on the comment section below: how will the year 2020 look like for ETH?