Exponential Growth Model of Ethereum

in #ethereum7 years ago

Data used from CoinDesk's (CoinDesk.com) Ethereum price data tab was used to create this exponential growth model for Ethereum. Obviously this just a trend line however the only thing that drives cryptocurrency value is supply and demand. Therefore, exponential growth is possible for a set amount of time if interest continues to grow. Since Ethereum is still young and is just at the brink of massive expansion this model could represent a trend for some time. The R square value is at 91% which is better than any other trend line formula on excel. Forecasting using the line equation we can see that Ethereum's price by May 13th could possibly be $107 per Ether. You can also notice that anytime Ether breaks above the line it is over valued and pulls back and any time it breaks below the line then it is under valued and spikes at some point after that.
Screen Shot 2017-05-08 at 5.26.56 PM.png

AGAIN this is just a trend line on excel but it could behave as a semi accurate tool to seeing when Ether is over or undervalued.

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This is a tremendous improvement

Good commentary thanks. Do you think ETH will fare as well as bitcoin has?

I think long term ETH could do as well Bitcoin, just due to the fact that so many large companies are starting to take interest in it. It has a lot more applications than Bitcoin since Bitcoins primarily for transactions.

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