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Introduction:
Have you ever considered trying to forecast the price of Ethereum in the future? Can machine learning be used to forecast the price of Ethereum? Do we have the data necessary to train the machine-learning model? Fortunately, all three of these questions have a positive response.
Now is a wonderful moment to start learning more about cryptocurrencies if you have yet to become familiar with them. They are promoted as the future of numerous activities and processes, not just financial ones, that run our daily life.
In this article, we’ll use machine learning and on-chain data to forecast the price of Ethereum in the future. However, let’s first go over a few key ideas.
What is a blockchain?
A blockchain is a computer network that keeps a shared and up-to-date transactional database. A block is a new set of transactions introduced into the system.
What is Ethereum?
The popular blockchain platform Ethereum is open-source, decentralized, programmable, safe, and scalable. It is the blockchain of choice for the majority of developers and companies.
The native coin of Ethereum is called ether. Additionally, it is written as ETH. Because ether is entirely digital, it can be sent instantly to anyone, anywhere in the world.
What is on-chain data?
A lot of data is produced by the Ethereum blockchain because of its inherent transparency and decentralized structure. It is also known as “on-chain data,” and anyone can easily access it. It functions as a massive data repository for complex prediction algorithms that are capable of accurately identifying systemic trends and forecasting future behavior.
On-chain metrics, such as the size of the blockchain, the number of connected blocks, or the complexity of mining blocks, are discrete data points based on information provided by the blockchain network.
Because on-chain data is usually maintained as a time series, each measure offers details about the previous actions of a blockchain. Everyone involved in law enforcement will consequently find a use for this information, whether they are investigating crimes or working in…
