Price of Ethereum – Two potential scenarios before 2021

Ether it jumped well above the USD 400 price and consolidated around USD 450 in an attempt to break out of a very important area. This challenge is calculated by traders to get an idea of ​​the general consensus of the cryptocurrency market as a whole. What area are we talking about specifically?

Ethereum technical analysis

Since the beginning of 2020, the price of Ether has been on a solid uptrend. Market crash events around the world slowed the pace for a while, but prices recovered well and continued their uptrend. (Fig. 1)

Last week, Ether hit a 2-year all-time high of USD 468, challenging all naysayers who were skeptical of the return of this contract-based cryptocurrency. Over the weekend, however, prices adjusted and dropped by around 9%. Despite this sudden drop (which may have wiped out short-term traders who have placed tight Stop Loss levels), the price has remained in an uptrend channel (Figure 2). A Fibonacci retracement would also have signaled a warning for a potential short-term retracement.

Charting and using technical analysis is very important for planning your trade receipts and planning important trade exits. Long-term traders also know when to enter or exit the market, as they usually reshuffle their portfolios depending on the dynamics and performance of the market.

Ethereum Price – The important price of 500 USD

We usually mention the term “psychological price” in our analysis quite often. These levels are not only important areas of support or resistance, but also key whole numbered prices that influence the trading emotional analysis of traders.

With the price of Ether, the psychological price of 500 USD is of utmost importance. Indeed, this level was a major contributor to support and resistance during the big cryptocurrency rally in 2017. (figure 3). Prices moved and were highly volatile when they reached this area, with two potential scenarios occurring before 2021 in theory.

Ethereum Price Prediction: Two Potential Scenarios

If we are to account for what could happen from a standard point of view, it is true that the markets rise or fall. But determining the general market consensus also has many other aspects:

• Know the general trend of the entire cryptocurrency
• Placement of commercial entries and exits
• Use of adequate risk management levels
• Easier charts and a better understanding of the price

Scenario 1:

In this scenario, the price of Ether continues in its bullish trend and breaks the psychological level of 500 USD before 2021 in a similar pattern from 2017, where volatility increases and in turn pushes the price to higher highs. (figure 4)

Scenario 2:

Ether price fails to break the USD 500 price and crosses the yellow line of the 2020 long-term uptrend and consolidates between USD 300 and USD 400 price.

Stay ahead, stay up to date

Rudy Fares

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