What Moves Ether’s Price?

Ether, the currency that fuels Ethereum's blockchain platform, is the second-largest cryptocurrency by market capitalisation after Bitcoin.

As such, given its importance and status, many traders and investors may be interested in knowing what shifts Ether prices.

In this article, we examine the factors that affect the Ether currency price and how they can affect your trading portfolio.

Let's dive in:

*Illustrative figures.

TL;DR

• Ether (ETH) powers the Ethereum blockchain and is the second-largest cryptocurrency.
• Ether can be mined indefinitely.
• Factors like hard forks and network updates can cause volatility.
• Trader speculation and macroeconomic factors influence price.
• Regulatory news can cause sudden price swings.
• CFD trading lets you gain exposure without owning Ether, but it comes with risks.

What Factors Affect Ethereum and Ether Prices?

Ethereum and Ether are user-supported products built on a ledger system. This system allows all computers on the network to see the full history of all transactions, creating continuous transparency. However, as networks and supporters grow, factors emerge that can affect the protocols and price of Ether.

Hard Forks

Every individual who lends processing power to any blockchain network must agree to follow 100% of the network's protocol in order for it to work properly. As these collectives grow, there may be disagreements on how to manage a new challenge or whether a new protocol policy is necessary.

When new protocols are rolled out, a group of individuals may disagree with them and refuse to update their systems. This break from the main protocol is referred to as a Hard Fork.

While users of old protocols usually fade out over time and have not shown to have a noticeable historical effect on the valuation of Ether, Hard Forks do bring the potential for volatility. As new changes are implemented, traders wait to see what impact (if any) the new protocol will have on the networks' performance and whether it will impact the coin.

For example, if a protocol allows miners to charge more to process blocks or transactions, it could create inflation, devaluing the cryptocurrency.

Trader Speculation

Ether is not tied to a central bank, and as such, its price fluctuations are influenced by trader speculation. There is no ceiling for how much Ether can be produced, so there is always a risk of inflation or a lack of interest affecting the price of this cryptocurrency.

Unlike other cryptocurrencies, Ether is tied directly to the Ethereum platform, ensuring its usefulness for the future as individuals dabble in Dapps and other blockchain features such as Smart Contracts.

Macroeconomic Factors

High inflation and interest rates can affect liquidity, potentially lowering ETH prices. As such, traders and investors may want to monitor the monetary policies of central banks (like the Fed) to better understand where Ethereum prices might be headed.

Regulations

It is no secret that cryptocurrencies are prone to regulatory scrutiny due to their volatile nature. Therefore, any regulatory changes can potentially boost or deflate Ethereum prices.

A prominent example of how regulations can shift Ethereum prices is when the US Securities and Exchange Commission (SEC) approved Bitcoin ETFS, thereby boosting other Crypto prices. Another example is US President Donald Trump's pro-crypto policies and his first White House Crypto Summit held in April 2025, generating market optimism regarding cryptocurrencies, thereby driving ETH prices higher.

How to Trade Ethereum CFDs

Ethereum's value is traded using the platform's currency, Ether.

Ether can be traded using Contracts for Difference (CFDs). The benefits of trading Ether CFDs over purchasing the underlying asset outright are that you can gain leveraged exposure to the currency without being responsible for managing the underlying asset. Trades can be rapidly executed without bringing the underlying asset to the open market and sending it to another crypto wallet. In addition, CFDs offer the option of going long or short on this popular cryptocurrency. While there are benefits to trading Ether CFDs, cryptocurrencies are highly volatile and come with risks.

If you believe that Ether will increase in value, you can open a Buy position. This means you are entitled to the difference between the price at which you opened the position and a higher closing price. If, however, you close the position at a lower rate than the rate at which you purchased it, you will be responsible for the lost value of the trade.

If you believe that Ether will decrease in value, you can open a Sell position. This will short the currency, allowing you to recognise profit from the difference between the opening price and the lower closing price. If, however, you close the position at a higher price than what you opened it at, you will be responsible for the difference and incur a loss.

For traders who wish to trade a position based on the movements of Ether against Bitcoin, they can trade CFDs on Plus500's Ethereum/ Bitcoin (ETHBTC) instrument.

The complexities and various factors that influence cryptocurrencies make them highly volatile. When trading CFDs over Ether (Ethereum), you will not purchase the underlying cryptocurrency. Yet, you can gain exposure to the instrument without having to look for a buyer for your coins.

Conclusion

Ethereum has evolved beyond being just a cryptocurrency and now powers a robust ecosystem of smart contracts and decentralised applications. Ether, its native currency, remains highly influential in the crypto market. Understanding the key drivers of Ether's price, such as trader sentiment, macroeconomic conditions, regulatory developments, and network changes like hard forks, can help investors and traders make informed decisions. While CFD trading offers flexible exposure to Ether without owning the asset, it comes with high risk due to the market's volatility.

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