Ethereum: according to one prediction it could reach $5000

Ethereum prediction

According to data from GlassNode, Ethereum could be worth $5000; obviously no one has a crystal ball or can predict the future, so any forecasts should be taken with a grain of salt.

A few hours ago, Ethereum set its personal price record at over $2,400, thanks in part to the Berlin update that took place yesterday on Vitalik Buterin‘s blockchain.

Ethereum: predictions, average price and the real price

Right now, ETH is worth $2444, but according to Glassnode’s data, the average purchase price of all Ethereum holders is $802.

This would mean that those who buy ETH now are doing so by paying 3 times the average purchase price of those who already hold this asset. This number is nothing more than the Market Value to Realized Value (MVRV), i.e. the current price of the asset divided by the average purchase price. 

This MVRV value tells you if the current value is right or not, so it is used as a price to understand if the asset is in a pure FOMO phase or if it makes real sense for it to have that price.

The MVRV, according to Glassnode’s data, is on an upward trend and some analysts believe that it could reach 5 times higher by the end of May.

By 5 times higher, we mean the average value of $802 multiplied by 5 times, i.e. $4010, which is nothing more than a 71% increase over current values.

But in the meantime this average purchase price will increase, because if more people start buying today, at a value of $2444, the average purchase price could increase and then according to other analysts the price of Ethereum could even reach a value of $5000 per ETH.

As said, these are obviously assumptions, albeit supported by analysis and actual data.

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