At 8:30 a.m. Eastern Time today, one Ethereum (ETH) is priced at $1,978.02. That marks a $10.36 dip from yesterday morning and approximately a $630 decrease compared to this time last year.
What is Ethereum?
Ethereum holds the position of second-largest cryptocurrency by market capitalization, currently valued at around $233 billion. It’s significantly behind Bitcoin’s roughly $1.33 trillion market cap—but considerably ahead of the third-largest option, Tether, at $183 billion.
A key difference between Ethereum and other cryptocurrencies is that it’s not just digital currency. It actually functions as a decentralized computing platform, meaning users can develop and operate applications on it without any company or bank involvement.
In essence, developers can build apps on Ethereum’s blockchain network (as opposed to, say, Amazon or Google servers) to facilitate activities like borrowing, lending, investing, trading, and more. The token ETH acts as the currency you’ll use to perform those functions.
Ethereum price history
Ethereum’s initial coin offering (ICO) went live in 2014 for just 31 cents per share. Since then, its value has surged by more than 60,000%.
Over the past five years (2020-2025), Ethereum has gained a respectable 46%. But that doesn’t show the complete picture. Ethereum has faced serious volatility, climbing to nearly $5,000 at its peak in August 2025. That’s nearly 1.6 million percent in growth from its original ICO—which makes that earlier 60,000% increase look rather modest.
ETH has since experienced gains above 80%, drops beyond 60%, and basically every dramatic fluctuation in between. Early 2026 saw a sharp downturn in Ethereum’s value for multiple reasons, from concerns about recession to Ethereum co-founder Vitalik Buterin selling many millions of dollars worth of ETH.
The main point is that Ethereum can produce massive gains and massive losses—roughly on par with what you’d expect from other major cryptocurrencies.
Ethereum vs. Bitcoin
Following Bitcoin, Ethereum holds a distant second place in the rankings for largest cryptocurrency.
But again, Ethereum wasn’t initially designed to serve primarily as a currency; its main purpose was to create a decentralized computing platform. There are many practical uses for Ethereum—and its developer community is enormous. Investors appreciate this because it offers growth potential beyond simply being an “alternative currency.”
Here’s a straightforward way to grasp the difference between these two currencies:
- Bitcoin is often compared to digital gold—it’s mainly used as a store of value and a form of currency.
- Ethereum, on the other hand, is more like digital oil—it fuels the decentralized apps and smart contracts that run on its network.
What is Ethereum staking?
Staking is another element that separates Ethereum from Bitcoin.
Until 2022, Ethereum’s network was protected by thousands of computers competing to solve random puzzles (called “proof of work”). When your computer cracked a puzzle, you’d receive some ETH as a reward. It sounds peculiar (and it was), but it was successful in maintaining an honest account ledger.
Because this method consumed lots of electricity and didn’t really make sense anyway, Ethereum decided to eliminate it in favor of an activity called “staking.” Staking is when you lock up your ETH as a security deposit to help confirm transactions. When you do this, you’ll earn a reward similar to the return from proof of work. You’re basically earning interest on your stake.
What affects Ethereum’s price?
Several factors can influence Ethereum’s price, including:
- Investor speculation: Like most cryptocurrencies, Ethereum’s short-term price often moves based on trader sentiment and hype. In the near term, speculative trading tends to have more impact than fundamentals.
- Network activity and DeFi adoption: When more people use the Ethereum network, demand for ETH typically goes up. The decentralized finance (DeFi) boom of 2020–2021 showed just how much network usage can drive prices higher.
- Overall economic health: While crypto doesn’t react to interest rates quite like stocks do, the state of the broader economy still matters. When investors feel confident and have extra money, they’re more likely to allocate some toward assets like Ethereum.
- Regulation: Since the crypto space is still evolving, changes in regulation can significantly sway investor confidence. Major policy announcements can either boost optimism or create uncertainty.
- Competition: Ethereum no longer dominates the smart contract space on its own. Other blockchains—like Solana and Avalanche—offer potentially faster or cheaper alternatives. How Ethereum continues to innovate and adapt will shape its long-term value.
How to buy and invest in Ethereum
There are a number of ways to invest in Ethereum, each with its own degree of risk. Here are some examples.
Buy Ethereum on a crypto exchange
Directly buying ETH is the most involved investment strategy. Open an account with a cryptocurrency exchange and connect your bank account to purchase and store the ETH in a digital wallet.
Invest in Ethereum ETFs
If managing crypto yourself doesn’t sound appealing, including dealing with wallets and private keys, an Ethereum ETF might suit you better. These funds hold the crypto for you while their shares trade on stock exchanges like a typical stock.
Buy Ethereum-related stocks
Putting money into publicly traded companies with strong connections to Ethereum is a method to gain ETH exposure without holding it directly. This could include blockchain technology firms, companies with significant amounts of ETH on their balance sheets, etc. This allows you to benefit from its performance indirectly.
Open a crypto IRA that holds Ethereum
A crypto IRA enables you to hold Ethereum in a tax-advantaged retirement account. It operates like a traditional or Roth IRA—with the same contribution limits and tax benefits.
Cryptocurrency prices today
Ethereum is one of the most ubiquitous cryptocurrencies, but it’s far from the only option. Consider the following options when deciding where to place your money.
- Bitcoin: As the first cryptocurrency ever created, Bitcoin remains the most recognized and widely held digital asset. It’s designed to function both as a store of value and a peer-to-peer payment system.
- Tether: Tether is a type of stablecoin, which means its price is tied to another asset, namely, the U.S. dollar. That peg helps keep its value steady, making it far less volatile than Ethereum, though it also offers less potential for major price growth.
- XRP: XRP was built for fast, low-cost international money transfers. It’s designed to move funds between countries in seconds while keeping transaction fees minimal.
Is it a good time to invest in Ethereum?
Compared to long-established blue-chip names like Johnson & Johnson and IBM, Ethereum is still in its early chapters. There’s no way to know for sure how ETH will perform over the long run, but its track record so far has been remarkable. More importantly, its role extends far beyond being a tradable asset—it’s the backbone of a fast-growing ecosystem of financial tools and decentralized applications.
That said, Ethereum’s history includes some steep pullbacks, so expect plenty of volatility along the way. It’s not ideal for investors who lose sleep over market swings. Keep tabs on competing blockchain projects, and resist the urge to go all-in. A modest, strategic allocation to ETH within a diversified portfolio is the wiser move.
Frequently asked questions
How much will Ethereum be worth in 2030?
Cryptocurrency experts are bullish on Ethereum’s long-term trajectory. Standard Chartered has predicted ETH could even eclipse Bitcoin by then, reaching $40,000 by the next decade. More conservative estimates place it closer to $10,000. Either way, that’s a meteoric rise from its early 2026 valuation.
What is Ethereum’s all-time high price?
As of this writing, Ethereum reached its highest price ever in August 2025, hitting nearly $5,000.
Can you buy a fraction of Ethereum?
Yes. Most cryptocurrency exchanges allow for fractional investing, giving you the ability to buy portions of a single crypto coin—including ETH.
How do I start investing in Ethereum as a beginner?
If you want to invest directly in Ethereum by owning the currency, you’ll typically open an account with a cryptocurrency exchange. Once the account is created, you can transfer your money from your bank account to your crypto account and begin making purchases. Alternatively, you can indirectly invest in Ethereum via an ETF or a company that’s closely tied to Ethereum’s success.
What is Ethereum staking?
Staking involves locking up your ETH to help validate transactions on Ethereum’s decentralized network. The upside to doing this is that you’ll receive a return similar to interest with a high-yield savings account.
Is Ethereum better than Bitcoin?
Neither Ethereum or Bitcoin is objectively “better.” They do different things. Bitcoin is primarily a store of value, while Ethereum is both a platform that powers a large ecosystem of applications and a cryptocurrency. Bitcoin tends to be less volatile and more established as a payment method, while Ethereum gives you more functionality, and likely more potential for growth.
