Ethereum Price Prediction in India 2023-24

As we enter 2024, the cryptocurrency market is still evolving, with Ethereum (ETH) retaining a significant role as one of the top digital assets. Investors and fans are keenly anticipating how the price of Ethereum will perform in India throughout 2023-24. The purpose of this blog is to provide insight into the elements driving Ethereum price prediction in 2023.

What is Ethereum?

Ethereum is a decentralised blockchain that uses cutting-edge smart contract technology (a command that executes the terms of an agreement automatically based on a specified algorithm). It is regarded as the market's most volatile cryptocurrency. It is distinguished from other cryptocurrencies by the symbol ETH.

It is more than just a smart contract platform; it also has applications in gaming, advertising, banking, identity management, web browsing, and supply chain management.

Ethereum has a long and well-known history, with numerous breakthroughs and incidents that have resulted in significant positive and negative changes. In mid-September 2022, the network's proof-of-work (PoW) model was replaced by the proof-of-stake (PoS) model, which promised to minimise the network's energy footprint, increase scalability, and shorten transaction times.

The improvements were termed "Ethereum 2.0," a broad term that defined Ethereum's next step towards a quicker, more accessible network.

Globally, there are around 14 million people who own Ethereum (ETH), and about 10 million actually use it. This means that about 24.4% are the adoption rates of all cryptocurrency owners have ETH tokens. Ethereum holds the second position in the crypto world, right after Bitcoin, when it comes to market capitalization. As of now, Ethereum's market cap is about $340 billion. Each day in February and March 2022, there were about 1.16 million ETH transactions on average. The value of these transactions adds up to roughly $16 billion. In total, there are around 112 million ETH tokens being used. Surveys conducted between October and December 2021 revealed that ownership of ETH decreased from 28.2% to 24.4% during that period.

Factors Influencing Ethereum Price:

Before delving into the prediction, it's essential to understand the key factors that influence Ethereum's price:

1. Market Sentiment: The overall sentiment of the crypto market plays a significant role in determining Ethereum price in India. Positive news, regulatory developments, and adoption by major institutions can increase prices, while negative sentiment may result in downward pressure.

2. Technological Advancements: Ethereum continuously improves its underlying technology, transitioning from Ethereum 1.0 to Ethereum 2.0, a proof-of-stake consensus mechanism. Progress in scalability, security, and upgrades can impact investor confidence and, consequently, the price.

3. Decentralized Finance (DeFi) Adoption: Ethereum is the foundation for the majority of DeFi projects. As DeFi continues to gain traction, Ethereum's utility and demand may surge, positively affecting its price.

4. Regulatory Environment: Regulations can significantly impact cryptocurrency markets. Clarity and supportive regulations can increase institutional interest, while restrictive regulations may hinder growth.

5. Global Economic Factors: Economic events, geopolitical tensions, and inflation can influence investor behaviour, leading to fluctuations in the cryptocurrency market, including Ethereum.

Ethereum Price Prediction for India 2023-24:

Predicting cryptocurrency prices is highly speculative and subject to multiple variables. However, considering the factors above, we can offer a general outlook for the price of Ethereum in India during 2023-24:

Between January and July 2023, the prices of Ethereum went up by a significant 46%. However, despite this increase, Ethereum is currently dealing with some short-term worries that are affecting its positive momentum. Many experts in the field predict that the prices of Ethereum could range from Rs 90,000 to Rs 1,65,000 approx in the early part of 2023.

By 2024, Ethereum is likely to continue its growth trajectory, supported by advancements in Ethereum 2.0 and increasing DeFi adoption rates. A surge in institutional interest, driven by a more favourable regulatory environment, could push Ethereum's price to new heights.

However, it's important to note that the cryptocurrency market is highly volatile, and sudden price fluctuations can occur due to unforeseen events. Investors should conduct thorough research, exercise caution, and make informed decisions based on their risk tolerance and financial goals.

Conclusion

It is impossible to predict the future price or outcome of Ethereum or any cryptocurrency because cryptocurrencies are highly volatile, uncertain and rely on a variety of variable and unexpected factors. Readers should be sceptical of all crypto price projections and grasp the volatile, unpredictable, and dangerous nature of all cryptocurrencies before making any crypto-related decisions.

Before purchasing cryptocurrencies, it is critical to conduct independent research, be cautious, consult unbiased specialists, and comprehend all of the risks involved. Cryptocurrencies may not be suitable for everyone. Furthermore, it is critical to understand the substantial risks and volatility connected with all cryptocurrencies.

By - Nitika Gola