Today marks a momentous day for Ethereum, as it managed to break the essential psychological price of USD 500 within the past hour. This year was a colossal year for cryptocurrencies: increased interest by tech entrepreneurs, improved knowledge of the cryptocurrency market across the masses, and a lift in adoption by big tech, financial institutions, and private investors all helped in increasing the demand. What should we expect towards the end of Q4 of 2020? Will 2021 be THE year of cryptocurrencies?
Ethereum price today – A healthier uptrend than in 2017
If we compare the uptrend that happened in 2017 and the one happening this year, we can CLEARLY see the difference in the price-action behavior. Prices used to spike 200% within days, with little to no adjustment in prices, signaling a clear hype in the market. Here at CryptoTicker, we always spoke of how necessary it is for prices to adjust, giving markets some room to “breath”. Failure to have price adjustments for an extended period usually results in market crashes, as most traders take their profits at the same time, creating a sudden FUD with no significant market advancements or news to backup or explain the price-action, which was the particular case back in 2017.
Today in 2020, we can see a very healthy uptrend that has price adjustments along the way (Fig.1). This phenomenon portrays stronger prices and a sturdier market, less prone to heavy price adjustments.
Ethereum Price Prediction – What to expect next
In a previous article, we spoke about how Ethereum will reach its soft price target of USD 500 very soon. Today is the day we look back to this bullseye prediction and go on to set our next soft target, which is the psychological price of USD 600, previously marked as a very important area back in 2017.
Setting price targets is not being done just by adding +$100 to the price every time, but rather look at past price behaviors from 2017. In this case, Ether’s price was very affected by every psychological price level it used to reach, thus taking it into consideration in today’s analysis.
We notice in the above figure 3, regular price adjustments were taken into consideration, as it is only natural to have profit-taking along the way.
Sensible Stop-Loss levels would be around USD 420 to USD 445, depending on risk appetites for traders who are just entering the markets. A breakout below those price levels might result in temporary stagnant prices, awaiting further news advancements to lift the price back up.
Stay Ahead, Stay Updated