ETHEREUM USD PRICE INFLUENCERS, TREND ANALYSIS AND TAIWAN INVESTMENT GUIDE
preamble
ETHEREUM USDPrice volatility is one of the most watched focuses for cryptocurrency investors. As the second largest cryptocurrency by market capitalization, Ethereum (Ethereum, ETH) is not only an investment benchmark, but the core fuel that drives the entire decentralized application ecosystem. As of early 2026, the price of Ethereum and USD fluctuates in the thousands of dollars, its value is influenced by a variety of factors such as technological developments, market demand, regulatory policies, etc. For Taiwanese investors, understanding the logic of changes in the price of Ethereum and USD not only helps to make informed investment decisions, but also to keep abreast of the development trends of the blockchain industry. This article will delve into the factors affecting the price of Ethereum USD and provide useful investment guides for Taiwanese investors.
Basic Concepts and Importance of Ethereum USD Price
What is the price of Ethereum in USD?
ETHEREUM USD PRICEIt refers to the exchange rate of 1 Ethereum (ETH) to USD, which is the main measure of the value of Ethereum. Just as the Taiwan dollar exchange rate reflects the state of the economy in Taiwan, the price of Ethereum reflects the value and market recognition of the Ethereum ecosystem.
The difference between Ethereum and Bitcoin is that Ethereum is not just a digital currency, but a decentralized computing platform. Ethereum plays a “fuel” role on this platform, which is used to pay the Gas Fee and execute smart contracts. This practical value is an important basis for supporting the Ethereum USD price.
The Importance of Ethereum USD Price for Taiwan Investors
Exchange Rate Conversion Basics: Taiwanese investors usually think in NTDs, but the international cryptocurrency market is mainly priced in USD. Understanding the price of Ethereum in USD helps to accurately assess the value and return on investment.
International Market Connections: The Ethereum USD price is the result of global market consensus. Through this price, Taiwanese investors connect with the international market to avoid spreads caused by low liquidity in the local market.
Investment Decision Reference: The price movement of EBTN reflects changes in market sentiment and fundamentals. It is an important basis for Taiwanese investors to make buying and selling decisions.
Six key factors affecting the price of Ethereum USD
1. ETHEREUM NETWORK TECHNOLOGY DEVELOPMENT
Technology Upgrade Progress: Ethereum's technical roadmap directly affects the price of Ether USD. Important upgrades, such as The Merge, from Workload Proof to Equity Certificate, Shanghai Upgrade (Open Deposit), and so on, have had a significant impact on prices.
Network Usage: The activity of decentralized applications (DApp), the number of transactions, the level of gas costs, reflects the intensity of network demand and indirectly affects the price of Ethereum and USD.
2. Cryptocurrency Market Overall Trends
Bitcoin Leadership Effect: In the cryptocurrency market, Bitcoin price movements tend to lead the overall market. When the price of Bitcoin and USD rises, Ethereum usually follows; vice versa.
Market Risk Preference: Macro factors such as the global economic environment, inflation data, interest rate policy, influence investors' preference for risky assets (including cryptocurrencies), thus affecting the price of Ethereum and USD.
3. Regulatory Policy Environment
US Regulatory Attitudes: The U.S. Securities and Exchange Commission (SEC)'s determination of whether or not Ethereum is a security will significantly affect institutional investors' willingness to participate, thereby affecting the price of Ethereum in USD.
Global Regulatory Trends: The regulatory framework for cryptocurrencies by major economies such as the EU, UK, and Japan affects the legal use scenario and liquidity of Ethereum.
4. Involvement of Institutional Investors
ETF Approval Status: If the Ethereum Spot ETF is approved, it will provide traditional investors with a compliant investment channel that could lead to a large inflow of funds, driving up the price of ETHEREUM USD.
Institutional holding data: Changes in the positions of investors in institutions such as listed companies, funds, etc., reflect the opinion of professional funds towards the aftermarket and affect market confidence.
5. The Evolution of Decentralized Finance (DeFi) Ecology
DeFi Stockpile Value: Ethereum is the main platform for DeFi applications, the number of coins locked in DeFi protocols reflects the health of the ecosystem and the strength of demand.
Layer 2 Solution Progress: The development of Layer 2 networks such as Arbitrum, Optimism, etc., affects the scalability and usage costs of the Ethereum network and indirectly affects the value of the Ethereum network.
6. Market Supply and Demand Relationship
Amount of deposits: After Ethereum turns into a proof of equity, the amount of ETH staked affects market circulation supply, thereby affecting the price of Ethereum in USD.
Circulation/Compression Mechanism: Ethereum's EIP-1559 upgrade introduces a destruction mechanism whereby when the network is used frequently, the cost of destruction may exceed the new issuance volume, putting Ethereum into a thaw state, supporting the price.
ETHEREUM USD HISTORICAL PRICE TREND REVIEW
Early Stage (2015-2017)
Ethereum went live in 2015 and initially priced at less than $1 USD. In 2017, with the first token issuance boom, the price of Ethereum broke above $1,000 for the first time, but then fell back.
Bull Bear Cycle (2018-2020)
During the 2018 crypto bear market, the price of Ethereum and the US dollar fell by more than 90% from the highs. The DeFi summer frenzy of 2020 fueled a recovery in the price of Ethereum, returning above $1,000 by the end of the year.
Institutionalization Phase (2021-2023)
In 2021, the price of Ethereum and USD hit an all-time high, approaching $5,000. A major pullback in 2022 was affected by macroeconomic contraction and industry events. In 2023, prices will gradually recover as technology upgrades are completed and institutional interest picks up.
Recent Developments (2024-2026)
The Ethereum spot ETF has been approved in some markets, pushing the price into a new phase. As of early 2026, the price of Ethereum and USD fluctuated in the thousands of dollars, reflecting the market's appreciation of its dual attributes as a “digital bond” and a “network fuel”.
Analysis of the current situation of the Ethereum and US dollar market
Price Range and Volatility
As of the beginning of 2026, the main range of fluctuations in the price of Ethereum and USD is $2,500-4,000. Volatility has decreased compared to the past, reflecting improved market maturity and increased institutional involvement.
Changes in market structure
Increase in institutional holdings: The proportion of traditional financial institutions holding Ethereum through ETFs, trusts, etc., continues to increase, changing the structure of market participants.
Importance of Asian markets: Investors in Asian markets such as Taiwan, Hong Kong, Singapore, etc., continued to grow in interest in Ethereum, and trading activity increased.
Technical Indicator Analysis
Relative Strength Indicators: The price performance of Ethereum against Bitcoin (ETH/BTC exchange rate) reflects the market's preference for the two major cryptocurrencies.
On-chain data: On-chain indicators for the number of active addresses, large number of transactions, exchange inflows, and so on. They provide predictive reference for price movements.
FUTURE PRICE TREND OUTLOOK FOR ETHEREUM
Short-term impact factor (next 6 months)
Clarification of regulatory policy: The final determination of the major market regulatory categories of Ethereum will affect the speed at which institutional funds flow.
Technology Upgrade Progress: The implementation progress of Ethereum's subsequent upgrades such as “Verkle Tree”, “State Expiration”, etc.
Mid-term trend (1-3 years)
Accelerated Institutional Adoption: More traditional financial products incorporate Ethereum to improve liquidity and price stability.
Application Scenario Expansion: Businesses use Ethereum for supply chain management, digital identity, and more practical applications, increasing the practical demand for Ethereum.
Long-term outlook (3-5 years)
Web3.0 Infrastructure: As a core foundation layer for Web3.0, Ethereum's value will be tied to the depth of development of the decentralized network.
The Role of the Global Digital Economy: Ethereum may play a more important value transfer and settlement role in the global digital economy.
How do Taiwanese investors participate in Ethereum investments?
Investment channel selection
Local Cryptocurrency Exchanges：
- Legal platforms in Taiwan such as MAX exchange, ACE exchange, etc.
- Buy Ethereum directly with NTD
- Advantages: Chinese interface, local customer service, easy to deposit NTD
- Note: Select Compliant Exchanges Declared by the HKMA
Overseas Exchanges：
- Binance, Coinbase and other international platforms
- Advantages: High liquidity, variety of products
- Note: Foreign exchange and international remittances are required
ETF & TRUST PRODUCTS：
- Invest in US Ethereum ETFs (such as ETHA, FETH) via multiple delegation
- Advantages: Traditional securities account for trading, stronger regulatory protection
- Note: Management fee costs, tracking errors
Investment Strategy Recommendations
Batch Investing Strategy：
- Split funds into multiple, regular or price ranges
- Reduce the price risk of a single point of entry
- Suitable for long-term investors
Core and Satellite Configuration：
- Long-term holding of Ethereum in the core sector
- Satellite segment dynamically adjusts according to market conditions
- Balancing Long Term Beliefs with Short-Term Opportunities
Risk Management Strategies for Ethereum Investments
Price volatility risk management
Set Stop Point: Set sell points when prices fall, control maximum losses based on your risk tolerance.
Diversified Investment: All funds should not be invested in Ethereum, but should be allocated to different asset classes to reduce the risk of the overall portfolio.
SAFETY PRECAUTIONS
Cold & Hot Wallet Separation: Large amounts of Ethereum are stored using cold wallets (hardware wallets), and small amounts are easy to trade with hot wallets.
Private Key Security Management: KEEP PRIVATE KEYS AND NOTES PROPERLY AND AVOID USING CLOUD STORAGE OR SHARING WITH OTHERS.
Special Considerations for Taiwan Investors
Tax Filing Obligations: Taiwan investors should include cryptocurrency exchange income in their individual comprehensive income tax return and keep complete transaction records.
Choose a legal channel: Trade through a legal compliance platform, avoid using unregulated channels and protect your own interests.
Be Wary of Fraudulent Practices: Beware of common scams such as fake exchanges, fake customer services, phishing sites, etc. It is not easy to reveal private keys or verification codes.
Comparison of the price movement of Ethereum and Bitcoin
Relevance analysis
The price movement of Ethereum and Bitcoin is highly correlated (usually the correlation coefficient exceeds 0.8), but there are still significant differences:
Ascending phase: Ethereum's gains are usually larger than Bitcoin's, reflecting its higher volatility and growth potential.
Fall Phase: The decline in Ethereum may also be larger than Bitcoin, and the risks are relatively high.
Value Proposition Differences
Bitcoin: Primarily positioned as “Digital Gold”, a value storage tool, scarcity drives value.
Ether: Positioned as “digital oil”, networked fuel, utility driven value.
Investment Configuration Recommendations
For Taiwanese investors, it is recommended to allocate the ratio based on investment objectives:
CONSERVATIVE INVESTORS: Bitcoin is the main (70-80%), the Ethereum is secondary (20-30%)
Balanced Investors: Bitcoin and Ethereum account for about 50% each
Active Investors: Ethereum is the main (60-70%), the Bitcoin is secondary (30-40%)
Summary: Ethereum Investment Recommendations for Taiwanese Investors
Pre-Investment Assessment Highlights
Risk tolerance: Ether is a highly volatile asset and is suitable for investors with high risk tolerance.
Investment Objectives and Deadlines: Clear investment objectives (short term trading or long term holding) and time period, choose the appropriate strategy.
Knowledge Readiness: Understand the Ethereum technology foundation and ecosystem to avoid blind investments.
Practical Operation Suggestions
Start with a small amount: A small amount of money is invested in the initial investment, and then gradually increases after familiarization with the characteristics of the market.
Continuous Learning Updates: ETHEREUM TECHNOLOGY AND ECOLOGY ARE DEVELOPING RAPIDLY AND REQUIRE CONTINUOUS LEARNING TO KEEP UP WITH THE LATEST DEVELOPMENTS.
Establishing Investment Discipline: Set clear trading rules and strictly enforce them to avoid emotional trading.
Regularly view adjustments: View the portfolio quarterly or semi-annually and adjust the configuration according to market changes and individual circumstances.
Risk Awareness Reminder
ETHEREUM USD PRICE IS AFFECTED BY MULTIPLE FACTORS AND MAY FLUCTUATE SHARPLY. Taiwan investors should:
- Invest only funds that can incur losses
- Adequate risk management
- STAY RATIONAL AND AVOID FOMO (LOSS PHOBIA) EMOTIONS
- Long-term investments should focus on fundamentals rather than short-term price fluctuations
As blockchain technology continues to evolve and applications expand, the role of Ethereum in the digital economy will become more important. FOR TAIWANESE INVESTORS WILLING TO TAKE RISKS AND LEARN DEEPLY, ETHEREUM OFFERS AN IMPORTANT OPPORTUNITY TO PARTICIPATE IN THIS DIGITAL REVOLUTION, BUT CAREFUL ASSESSMENT, PLANNING AND CONTINUOUS LEARNING ARE KEY TO SUCCESS.
Risk Warning Statement：
Investments in Ethereum are risky and the price fluctuates sharply, which can lead to loss of capital. This article is for educational purposes only and does not constitute any investment advice or profit guarantee. Before investing, be sure to research yourself, understand the risks involved, and invest only money that you can afford to lose. Past price performance is not indicative of future results and investors should judge independently based on their own circumstances. “Virtual assets are non-currency, high-risk transactions and investors should use caution,” the HKMA reminds.
