Ether Price Prediction Using Advanced Deep Learning Models

Abstract

Over the last years, cryptocurrencies have gained popularity as a means of exchange, but mostly as an investment asset that can yield important earnings. Accurate cryptocurrency price prediction is the holy grail of investors, yet the task is extremely complex and tedious since cryptocurrencies exhibit high volatility and steep fluctuations compared to fiat money, while they depend on a plethora of factors related to the blockchain network, market trends, social popularity and the prices of other (crypto)currencies. Thus, simple statistical methods are not able to capture the complexity of cryptocurrency exchange rate, forcing researchers to turn to advanced machine learning techniques. In this work, we present a methodology for building deep learning models to forecast the price of cryptocurrencies and apply it to the prediction of Ether price, resulting in short-and long-term forecasts that achieve an accuracy of up to 84.2%.