Ethereum price

What is the current ethereum price and how is it determined?

Share this article
24 hours

Follow the real-time ether price

Like all cryptocurrencies, ethereum always has a price. You are able to trade ether every hour of the day since there are no opening and closing hours like on stock exchanges. As you can see in the ethereum graph above, the price is constantly fluctuating.

Would you like to adjust the time frame? It’s very easy. When you click ‘All’ for example, you’ll be able to see the historic price movements for ether.

The price that is shown in the graph above is determined by taking the average of several international exchanges.

History of Ethereum

The Ethereum network originated in 2015, when the so-called Genesis block was mined. A Genesis block is the very first block of a new blockchain. On the Ethereum network, ether is the corresponding currency. The terms Ethereum and ether are often confused. When you read about ether in this article, we’re referring to the currency.

So what’s the difference between the protocols of Ethereum and Bitcoin? Bitcoin has been designed to function as a peer-to-peer payment system in which safety and decentralisation are key. Bitcoin is an alternative to the existing financial system of central banks, who can print money almost limitlessly.

Ethereum wasn’t really designed to be a payment system. It was created as a platform on which decentralised applications can be launched. This way, the network could potentially function as a 3.0 version of the internet as we are currently using it.

Another function of the Ethereum network, is running so-called smart contracts. A smart contract is a programmed contract, which is automatically executed when the terms and conditions are met. This offers endless possibilities, and a lot is expected from Ethereum in the years to come.

Since ether is the currency used on the Ethereum network, the demand for ethers will rise as the network increases in popularity. A rising demand will generally lead to a higher price.

An overview of the ether price

In 2017, the price of ether increased enormously. On the 1st of January, 2017, ether was worth approximately 8 dollars, by December 31st, the value had increased to 723 dollars!

Some milestones of ether’s price:

 

  • July 22, 2014: Ether is introduced with a crowdsale. One of the creators is whizzkid Vitalik Buterin. The introduction price is set to 31 cents (USD).
  • May 12, 2016: Ether’s market cap passes 1 billion dollars.
  • June 13, 2016: 55 million dollars worth of ether is stolen from DAO, one of the first big projects on the Ethereum network. The theft of funds from DAO had a knock on effect resulting in ether losing a third of it’s value.
  • May 5, 2017: Almost two years after ether’s launch it’s worth more than 100 dollars- a whopping 32,000 percent increase in value!
  • January 15, 2018: Ether reaches its all-time high to date- 1389 dollars.

What to expect from the ether price

Unfortunately we can’t predict the future. The ether price is volatile, just like that of other cryptocurrencies. Daily price movements of multiple percentages are not uncommon.

Media reports can be of great influence on the price. Positive news about the use of the Ethereum network is generally well-received in the crypto community. This increases trust in the coin, which in turn positively influences its price.

A good example is the formation of the Ethereum Alliance in March 2017. Members of the Alliance are prominent companies like Microsoft, Mastercard, ING, and Shell. By being part of the Alliance, they expressed their confidence in Ethereum. In turn, the price of ether went through the roof that month- it’s value almost tripled! Of course, it can’t be said for sure that the formation of the Ethereum Alliance was solely responsible for this increase, but it’s effect was evident.

Only invest an amount that you can afford to lose

We just keep repeating it. In our opinion, an investment in cryptocurrencies is one of the most interesting ones you can make, but equally risky due to its volatile behaviour.

One moment the price might soar, but the other it can suddenly plummet again. This is why we always recommend investing an amount of money that you can afford to lose, and to focus on the long term. In any case, we want to assist you in this great adventure and wish you the best of luck!

Share this article