Can Ethereum Stay Above $1,000?

Can Ethereum Stay Above $1,000?

While most traders are focused on Bitcoin, other cryptocurrencies can be just as profitable, with Ethereum among the most promising altcoins of 2018.

In 2017, the biggest challenge for cryptocurrency traders was volatility. Prices rose much faster than most experts had expected – good news for those with significant digital currency investments – and created a huge barrier to entry for new crypto traders. The question on everyone’s lips is now whether the sector can continue its spectacular growth, bearing in mind Bitcoin’s dramatic fall last year.

Last year, most analysts predicted that Ethereum (ETH) would reach $400 in 2017, and $1,000 in 2018. After reaching $1,200, ETH now appears to have lost some momentum and is currently heading downwards.

The key concept behind the potential future growth of the ETH price is the development of smart contracts. These allow users to make transactions based on “if/then” outcomes, whereby Ethers are released if certain predetermined conditions are met.

Smart contracts allow the implementation of agreements without the involvement of intermediaries or third parties, speeding up a wide range of business operations.

For instance, in the case of insurance policies, smart contracts can be used to reduce the administrative costs associated with fulfilling contracts and policies, which would usually require a large amount of manual human work such as data entry. Smart contracts also improve transparency, enabling both parties, and the network at large, to view all aspects of the agreement.

The potential applications of smart contracts are almost endless, covering uses across the Internet of Things, copyright content, banking, logistics, international trade, and global finance, creating long-term bullish potential for the cryptocurrency.

Ethereum could redefine the entire online economy, allowing the automation of most routine business processes that currently require the allocation of significant resources. Another important technical factor working in Ethereum’s favour is that smart contracts can be written in many different programming languages, including Solidity, Serpent, LLL, and Mutan.

The Chicago Board Options Exchange (CBOE) launched Bitcoin Futures on December 10^th. Futures on Ethereum might also be offered in the near future, which could trigger strong bullish movement in the ETH market.

Many analysts are now betting on ETH to stay above $1,000 in 2018. As a trader, you can use cryptocurrencies trading platforms such as UFX, which allow you to take advantage of every price movement, while benefitting from some of the best trading conditions in the industry.