Predicting Ethereum prices with machine learning based on Blockchain information

Abstract

With the growing interest in cryptocurrency and its fundamental algorithm, studies of cryptocurrency price predictions have been actively conducted in various academic disciplines. Since cryptocurrency is generated and consumed by Blockchain systems, Blockchain-specific information can be considered as the main component in forecasting the values of cryptocurrency. This perspective has been widely adopted in studies of Bitcoin price predictions. However, we find that Ethereum, a popular and leading cryptocurrency in the market, has Blockchain information that differs from that of Bitcoin. Hence, this study investigates the relationship between inherent Ethereum Blockchain information and Ethereum prices. Furthermore, we investigate how Blockchain information concerning other publicly available coins on the market is associated with Ethereum prices. Our key findings reveal that macro-economy factors, Ethereum-specific Blockchain information, and the Blockchain information of other cryptocurrency play important roles in the prediction of Ethereum prices.