Ethereum is a platform that allows you to create applications on the blockchain (like the blockchain used by Bitcoin). Consider Ethereum as the operating system, like Mac OS or Windows!

This is a fairly straightforward explanation of Ethereum and its smart contracts. As you can see, it is very different from Bitcoin, which is a digital currency. To learn more about Ethereum and its differences from Bitcoin, read the Ethereum vs Bitcoin Guide.

How Ethereum Price Prediction Works

Now that you know a little more about Ethereum, let’s get started! The first step in learning how to forecast price ethereum is to understand how and why the Ethereum price changes.

How does it work:

You wants to buy Ether and the current Ether price is $ 800 for 1 ETH

You try to buy $ 800 at a virtual exchange (a place where people buy and sell cryptocurrencies to each other)

Nobody is selling their Ether for $ 800 at the moment, because they quite like it, and they think that the Ether is above $ 800

You really wants to buy Ether right now, so he agrees to pay $ 820

Someone accepts your offer and sells 1 ETH to you for $ 820

Now the new Ether (ETH) trading price is $ 820

One of the biggest reasons behind a major change in supply and demand is the media.

The media

When there use to be good news regarding Ethereum or a proficient offers a new Ethereum price prediction and states that the value of Ether will rise, the market understands! Many people start buying Ethereum, and sellers don’t want to sell it. So what do buyers do? They start offering a higher price to buy Ether from the sellers.

When there use to be bad news regarding Ethereum, what do you think occurs? It’s true. Many people start trying to sell their Ether. But there are not enough people who want to buy all the Ether that is on offer. So what do sellers do? They start offering a lower price to sell their Ether quickly to the first person who wants to buy Ethereum.