Break Out Extravaganza – If Only..
If you bought Ethereum in 2015, the price was under $1. Compare that to its peak in 2017 when the price was $1300. If only..
Like all cryptocurrencies, ETH is strongly correlated to the price of Bitcoin. Price ebbs and flows in the same manner, albeit at a lower price valuation.
Unfortunately, there has been little upside since the break-out extravaganza 2 years ago and the coin has dipped as low as $90.
Would you have confidence in a digital asset with a 93% drop from all-time highs?
Not many would.
But there are reasons to believe all is not as bad as it looks. Let us examine the bigger picture.
ETH Price Trend
Ethereum was trading as low as just under $100 at the start of last year.
It rebounded, and during June/July the coin had clawed its way back to a peak value of $350. That is a 250% increase in price in under 6 months.
Only cryptocurrencies can show this kind of volatility.
However, the market turned bearish and ETH was no different. With a recent price of around $120, it has broken support levels from February and March 2019.
We are some way off all-time lows, but there has not been a change in the trend for the last six months.
Future Price Predictions
What’s next for ETH?
Admittedly, 2019 was a year in development with prices reflecting the immature market.
But in 2020, there is hope. Investors of the coin will be pinning their hopes on a market shift with PoS (Proof of Stake) in the upcoming release of Ethereum 2.0.
There are competitors vying for the same market, notably Cardano and Neo.
But with first movers advantage, it is inconceivable that any other cryptocurrency will overtake it in the short run.
High and Low Price Forecast
Ethereum has resistance levels at $200 and $230 it has to break before we can see a further move to the upside.
Now, a move to those levels is a 100% increase in price. A conservative call is that we will see ether trading above $200 in 2020.
Furthermore, from there on there is no resistance before $300-$350 which is another buy signal for investors.
On the other hand. Support levels are down at $100 and $85. But they are from the end of 2018 and beginning of 2019, levels you would not want to make a bet on.
If there is a break of support, we will be looking at the lead bull to change the market sentiment, not the Ethereum chart.
Ethereum Releases and Development
You cannot control market forces and price. What you can control is your team, and ETH has by far the biggest development team in the cryptocurrency space.
With Proof of Stake on the horizon and one of the brightest minds at helm of the project, a drop below previous support levels will be a cause and effect of manipulation or correlation. As it is with all markets.
A boom in price will depend on upcoming successful releases. This year will have the hallmarks of status quo or a swift increase in price. A brave bet is Ethereum as the lead bull in 2020.