Ethereum Price Prediction: Expert Warns More Crypto Crash Before Big Surge

Ethereum Price Prediction: Expert Warns More Crypto Crash Before Big Surge
Wall Street veteran Jim Bianco hints at a long-term surge for Ethereum and other cryptocurrencies amid last week's crash, owing to a revolution of the Decentralized Finance movement. Photo : Jack Taylor/Getty Images

Cryptocurrencies like Ethereum remain a worthy option for investors in the long term, a Wall Street veteran said in an interview with CNBC Wednesday.

Jim Bianco, founder and president of Bianco Research, forecasted that those who hold on to their investments amid the dizzying volatility of digital tokens should expect immense rewards and bearish sentiment.

Ethereum Price Prediction: Value Higher 'Down the Road'

Yet Bianco mentioned one particular coin as being the best option for investors: Ethereum.

Coins like Ethereum, he said, "are going to be a lot higher way down the road."

Accoridng to him, however, investors must endure more debacles similar to last week's cryptocurrency crash, wherein trillions in value were lost. Despite this, Bianco said, cryptocurrencies have "a lot of promise."

Read Also: Ethereum Price Prediction: Mark Cuban Explains Value Crash, Forecasts Huge Rebound

Bianco is one of the more independent voices on macro investing in the last three decades, and he is a regular guest on many business newscasts while writing a column for Bloomberg.

Bianco said the cryptocurrencies are not the only ones suffering from a bear run, but sell-offs have been quite more prevalent in the crypto market. He emphasized, however, that the current situation in the cryptomarket should serve as a catalyst for growth, especially for those who tough out the current difficult times, Express.co.uk reported.

Ethereum Value Rise Due to Decentralized Finance

One important factor in cryptocurrency rebuilding, Bianco said, is decentralized finance (DeFi). This movement is leading a revolution in the financial industry, and Ethereum which carries DeFi apps could be the biggest gainers, Invezz.com posted.

But, then again, intense volatility must be tolerated before the market reaches that level. While he said it may take months or years, he is sure cryptocurrencies will get there.

Ethereum, Poster Currency of Crypto Comeback

Bianco warned that cryptocurrencies remain vulnerable to declines of up to 70 percent from present levels, given that the technology is new. Ethereum experienced a total loss of above $2,000 since its high flying levels in early May. In the last five days, though, Ethereum had clawed back to around $2,700, making it a poster cryptocurrency of the expected comeback.

The expert likewise warned that the traditional financial sector could be worst hit once DeFi progresses, as he made an analogy with how digital news sites and social media affected the traditional publishing industry. While there are still print newspapers and magazines in existence, digital and social made it redundant and less interesting.

He said that once cryptocurrencies will have a more fundamental role in the general economy, prices will soar.

Bianco said that in the future, investor gains would slowly decrease as cryptocurrencies go mainstream and volatility is checked since there "less risk and less reward."

Bianco, the CNBC report further stated, owns a good number of digital tokens, mostly Ethereum, since 2017 and had since held on to them. He would trade occasionally, about once or twice a year.

Related Article: Ethereum Price Prediction: $3000 Bounce-Back Still Possible Despite Crypto Crash

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