Ethereum Prices Could Reach $2,500 This Year, According to Financial Consulting Firm
The value of Ethereum is expected to surge to new highs this year, according to a new forecast from DeVere Group, an international financial consultant. The projections suggest that the multi-week recovery in ether prices is only just the beginning of a much larger uptrend that will continue into 2020.
Ethereum could hit a high of $2,500 before the year is over, according to Nigel Green, founder and CEO of DeVere Group. In an emailed statement to MarketWatch, Green said the following:
“The price of Ethereum is predicted to increase significantly this year, and could hit $2,500 by the end of 2018 with a further increase by 2019 and 2020.”
He went on to add that the uptrend will be driven by three fundamental drivers: increased use of ETH as a trading instrument, the growing use case of smart contracts and the ongoing decentralization of cloud computing.
Green also said that regulation of the cryptocurrency market will lead to greater investor protection, which is ultimately a net positive for assets like Ethereum.
Ether prices jumped 6% on Sunday to $688 a coin. The virtual currency has a market cap of $68.2 billion, second only to bitcoin.
Regulatory Debate Heats Up
Not everyone is convinced that regulations will treat digital currencies like Ethereum favorably. The former head of the U.S. Commodity Futures Trading Commission (CFTC) recently stated that Ethereum is likely a “non-compliant security” under federal law.
Gary Gensler also indicated that initial coin offerings (ICOs) could see the biggest backlash from regulators. ICOs rely on Ethereum as their development platform of choice in overwhelming numbers. According to at least one estimate provided by ICOData.io, coin offerings have generated nearly $4 billion in funding this year.
Jay Clayon, who chairs the Securities and Exchange Commission (SEC) told Congress in February that every ICO is a security. He also added that most companies pursuing crowdfunding campaigns proceed as if federal regulations do not exist. This is a strong signal that the SEC will expand its oversight of ICOs in the near future.
Clayton recently told the U.S. House of Representatives Committee on Appropriations that there wasn’t a single ICO he came across that wasn’t a security. “To the extent something is a security, we should regulate it as a security,” he said.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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