The ETH/USD pair consists of one of the most popular cryptocurrencies and the most traded fiat currency, and it attracts traders around the globe. Interested? Start trading ETH/USD CFDs with FXOpen today!

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What Is ETH/USD CFD Trading?

ETH/USD CFD (Contract for Difference) trading involves speculating on the price movements of Ethereum relative to the US dollar without actually owning the underlying assets. CFDs are derivative financial instruments that allow traders to benefit from the price changes of an asset, such as Ethereum, without needing to buy or sell the asset itself.

ETH is the abbreviation and symbol for Ethereum, which is one of the most well-known and widely used cryptocurrencies in the world. Ethereum is a decentralised blockchain platform that was created to enable the development of decentralised applications (DApps) and smart contracts. ETH is used to pay transaction fees (known as "gas") when executing smart contracts and interacting with DApps on the platform. ETH can also be used for various purposes, including transferring value, as a store of value, and as a means of exchange.

To get the most up-to-date insight into the recent performance of this pair, check the ETH to USD chart on the TickTrader platform. It can help you make informed decisions at home or on the go – no matter if you use the desktop version, web terminal, or mobile app. Our real-time chart includes the very latest prices, historical data, and technical analysis tools to help guide your next trade.

ETH/USD Historical Performance

Ethereum was officially launched in July 2015. Initially, the price of ETH was relatively low, trading at fractions of a cent per token. Ethereum gained attention and popularity for its potential to enable smart contracts and decentralised applications (DApps).

In 2017, ETH experienced steady growth in price. It attracted the interest of developers and investors who recognised its potential for blockchain-based applications. In May 2017, Ethereum's price saw a significant surge above the $200 mark. A notable factor in this surge was the initial coin offering (ICO) boom, where many new projects raised funds by issuing tokens on the Ethereum platform.

In January 2018, 1 ETH cost over 1,400 in USD. This peak coincided with a broader cryptocurrency market rally. After that peak, Ethereum, like many other cryptocurrencies, entered a prolonged bear market. At the end of 2018, the pair was trading near $100.

The rate was quite stable until July 2020. By the end of the year, the rate of 1 ETH to USD was above $700. The spikes were driven by factors such as decentralised finance (DeFi) growth and increased institutional interest.

The strong bullish trend continued until the end of 2021, peaking above $4,500. However, a market correction led the pair to $1,000 in June 2022. The rate managed to stabilise within the $1,000-$2,000 range; however, enormous price fluctuations may continue.

Fortunately, FXOpen allows traders to take advantage of both rises and falls in the market with CFD trading.

Major Factors That Affect the ETH/USD Rate

The exchange rate of Ethereum against the US Dollar can be influenced by the following factors:

Ethereum's price often follows the broader trends in the cryptocurrency market. If Bitcoin experiences significant price movements, it can influence sentiment and lead to increased volatility in the ETH/USD market.

Positive news, adoption announcements, and developments related to Ethereum can boost sentiment, while negative news or security breaches can have the opposite effect. Ethereum is known for its continuous development and upgrades. Major protocol improvements, such as Ethereum 2.0, can impact the scalability, security, and functionality of the network, which can, in turn, affect its price.

The level of network activity on the Ethereum blockchain, including the number of transactions, the use of decentralised applications (DApps), and the total value locked in DeFi protocols, can influence the demand for Ether and affect its price.

Regulatory decisions and government policies regarding cryptocurrencies can have a substantial impact on Ethereum. Clarity or uncertainty in regulatory frameworks can influence investor confidence.

Economic events, such as economic crises or currency devaluations, can lead investors to seek alternative assets like cryptocurrencies, potentially affecting the ETH/USD rate.

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Important: at FXOpen UK, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules. They are not available for trading by Retail clients.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.