The rise in cryptocurrencies continues and investor demand is alive, but the altcoin king has not yet started the expected move. After a difficult period, investors are finally seeing movements reminiscent of 2021. So what are the expectations for Ethereum (ETH)? Are the medium-term targets satisfactory?
In mid-2021, we were talking about how the price below $2,000 was extremely cheap for Ethereum. Then we witnessed a massive rally. Despite the passing years and the PoS revolution, ETH was able to surpass the critical threshold. At the time of writing, ETH price, which found buyers above $2,200, has gained 30% since the rally that started in mid-October.
ETH’s rise, which was relatively subdued compared to BTC‘s 55% rally, is described as “funny” by some analysts. Ryan Sean Adams from Bankless said:
“The price of ETH at $2,200 is very funny. Everyone is trading here in this cycle, hoping it will hold. It’s hard to understand.”
Ryan Sean Adams also reminded that Ethereum currently makes a yearly profit of $2.7 billion and is the only profitable blockchain.
Is Ethereum a Good Investment?
Ethereum has a P/E ratio of 98, slightly higher than Amazon’s P/E ratio of 75. P/E reflects the comparison between a company’s earnings per share and the price of its stock. In this case, Ethereum generates much more income than the asset price reflects. In summary, the current price can be clearly stated as cheap.
On the other hand, with the transition to PoS, ETH has become deflationary. After the Merge that took place in September 2022, the supply decreased by 293,000. This means that with the shrinking supply, the price can continue to rise in the long term.
In addition, billion-dollar financial institutions are starting to issue bonds through the Ethereum network. We previously mentioned that one of China’s largest banks did this. In short, there is a lot of data suggesting that the price should reach higher levels in the long term.
ETH has returned to May 2022 prices, but it has not yet started the expected rally as it has just emerged from an 18-month consolidation. According to expert Anthony Sassano, a reasonable target for the price in the next bull season could be $10,000.