Since Ethereum made its introduction in 2015, the price has been on a rollercoaster reaching its peak in 2018. During that year, the number two crypto hit its apex at $1365. With the Ethereum network filling up and Project Serenity on its way, the future of Ethereum (and its price) are looking bright!
But how is this price determined? Simply put, the same way that all prices of a product are determined. By supply and demand. That means that when there are more buyers than sellers, the price goes up. Same goes for the other way around, if there are more sellers than buyers, the price goes down.
Ethereum price history
Compared to Bitcoin the price history of Ethereum is, of course, a little bit shorter. In the graph above we can see the price developments of Ethereum throughout the years. In the following paragraphs, we are going to take a closer look at the price history of Ethereum.
1: Whitepaper of Ethereum
The whitepaper of Ethereum was written in 2013 by Vitalik Buterin. Buterin is a 26 year old Russian programmer who was involved with the Bitcoin community since 2011. He wanted to create a new platform with less mining resources on which decentralized applications could be created. Vitalik’s idea was the start of Ethereum.
2: Ethereum crowdfunding
To introduce Ethereum the founders of the platform started a crowdfunding on the 22nd of July 2014. During this funding round, people could buy Ethereum for 31 cents (USD) a piece. The funding was a big success because the organization gathered enough to launch on July the 30th, 2015.
3: Reaching market cap of one billion dollars
Two years after the launch of Ethereum the platform reached a market cap of one billion dollars! At that time the price of one Ethereum was around 10 dollars. In just two years’ time, the price had increased with 3200%! People were starting to put their faith in the project.
4: DAO hack
Unfortunately, one month after reaching a market cap of one million dollars (June 18th 2016), 55 million dollars’ worth of ether were stolen from the DAO (Decentralized Autonomous Organization). This hack happened due to a weakness in one of the smart contracts. In a smart contract, the rules of a certain agreement are set in the code. One of these rules was exploited. As you can imagine, the price dropped significantly as 55 million dollar worth of ether were siphoned away. The DAO hack resulted in a rewind of the blockchain, reversing the event so the smart contract could not be deployed. This caused a fight in the community. The blockchain should be immutable, error or not. This al resulted in a hard fork, separating it into Ethereum and Ethereum Classic.
5: All time high price
After the controversy subdued, the price went back up as if nothing happened. At the start of 2017, the price was back at ten dollars. The year 2017 would later be seen as the breakthrough year for cryptocurrecy, where the price skyrocketed and crypto became mainstream. In just six months, the price went from 10 dollar to 1000 dollars. No, that is not a typo. But that was just the start, because a half year later (January 2018) the price had reached its apex with 1400 dollar. Ethereum’s all time high.
6: After the all-time-high ATH
This all-time high price was reached due to the enormous mainstream attention cryptocurrency got. The hype, as always, subdued dramatically after the price dropped slightly and everyone panicked. People were selling their Ethereum left and right and the price dropped to 380 dollars. It resurged for a short while in March, but as the hype dwindled so did the price. For eighteen months, the price hovered around 200 dollars until March of the year 2020. In 2020, all crypto found a little resurgence and Ethereum climbed to 550 dollars before the end of November. However, in December the entire market climbed immensely with BTC even hitting a new ATH. The effect on Ethereum? In just two months, the currency’s value doubled from 500 dollars in December to 1200 dollar in January. We are very curious what the year 2021 will bring.
How is the Ethereum Price influenced?
Different factors could influence the value of Ethereum. As mentioned before, supply and demand form the basis of any product. The product becomes more popular, more people want to buy Ethereum, the value increases. Besides supply and demand, the product itself can influence the overall reception of the crypto. DeFi and ERC-20 may not have a direct effect on the price, its overall functionality speaks in Ethereum’s favor. Other factors might include: