The price of Ether it is still in a strong upward trend. After reaching an all-time high since 2018 in early September, prices have fallen to a strong support level. Today, the price has turned back, it is expected to reach and exceed the psychological price of $ 500.
1- Ethereum ATs show strong momentum
In a previous article, we have studied the price of Ether clearly and have shown a very likely scenario 1 before 2021. So far, the price of Ether is doing exactly that, with a slight price adjustment from time to time.
Indeed, in September, the price was almost able to break through the USD 500 price level, much earlier than expected, but then adjusted back to normal uptrend levels. (Fig. 1)
2- Small inconvenience, big advantage
If prices were to adjust heavily today, there would be a very strong support level between USD 400 and USD 425 (Fig.2). But on the other hand, prices should break the psychological price of USD 500 and continue their strong uptrend to reach higher price areas like USD 700 or USD 1,000, but obviously this over a longer time frame.
So all in all, we are talking about a downside of around 14.8% if prices drop to USD 400, but the upside could be x2 and beyond.
3- Ethereum 2.0 is almost here
With the great promise of the highly anticipated Ethereum 2.0, interested users can deposit the 32 ETH required in the contract, in anticipation of the Genesis or Ethereum Phase 0 launch date set for 1 December 2020.
Once ETH 2.0 is up and running, stakers will be able to run validators and provide processing power to the new network based on Proof of Stake (POS).
This major event is expected to skyrocket the price of Ether, as more people will be interested in purchasing this resource once the project starts.
Conclusion
With the three reasons above in sight, one cannot fail to align with a stronger upcoming bullish trend. As a logical trader and investor, you must always set your own risk limits and know when to exit the market, as different traders have different risk appetites. Back to our article on how to become a successful trader!
Stay ahead, stay up to date
Rudy Fares
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Disclaimer: The authors of this website may have invested in cryptocurrencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in cryptocurrencies should be well informed about these high-risk assets.
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