Ethereum: USD/ETH (ETH=) Price Prediction for 2020 and Beyond

Ethereum: USD/ETH (ETH=) Price Prediction for 2020 and Beyond

Ethereum, the second-largest cryptocurrency in the world in terms of market capitalization took charge of the busiest coin in 2019 with incredible technological improvement. The Ethereum market reigning decentralized Application (dAPP) had a massive breakthrough as the popularity was just as expected in 2019. However, this had a little reflection of its price. The price for Ethereum was $133.42 on 1 January 2019 and traded at $129.63 on 1 January 2020. This was about a 3% negative price change.

Some of the obvious reasons why Ethereum failed to perform in 2019 was partly due to the poor market performance of the entire cryptocurrency industry. Bitcoin which dictates the direction of the price movement of the altcoins had a generally poor performance, though it staged a short bull run to trade close to $14,000 before falling back to a four-digit price zone. Another reason why the technological improvement of Ethereum had little impact on the price was due to the massive shift in the portfolio. Many cryptocurrency investors had to sell their Ethereum to buy Bitcoin after Bitcoin nearly hit $20,000 in its previous all-time high.

Why will Ethereum rise?

Answer – The first reason why Ethereum will possibly stage a bull run in 2020 is largely linked to the global economy. According to an online expert, Bobby Ullery, Ethereum will massively be affected by the possible adoption of the blockchain technology in international trade. As claimed by this expert, the adoption of the blockchain for international trade will cause the total market capitalization of the cryptocurrency market to hit $4.5 trillion in 2020. In this case, Bitcoin and Ethereum will contribute 25% each to the total market cap, which means the Ethereum market cap will be over $1 trillion. Using a circulating supply of 109 million to calculate the price with a market cap of over $1 trillion means Ethereum will trade around $11,000 in 2020. This price point seems ridiculous considering the current price of the asset. However, nothing is impossible in the cryptocurrency market. Even today, we can observe that more and more CFD brokers support Ethereum trading, which results in overall boost of the coin. The bottom-line of this prediction is that Ethereum stands a chance of trading close or above its the all-time high price of $1300 in 2020. Ethereum will have to record a percentage rise of close to 1000% from its previous all-time high which is feasible considering the fact that Ethereum rose by 10,000% in 2017.

Another reason why Ethereum will rise in 2020 is because of the Bitcoin halving event. It is very difficult to make any prediction of an altcoin without considering this occasional event that has the ability to turn things around in the market. The charts above display a similar price behavior of Bitcoin and Ethereum during and after the previous halving events. The last time Bitcoin recorded its all-time high, Ethereum also recorded an all-time high. The last time Bitcoin recorded a significant fall, Ethereum price took a significant fall as well. The Bitcoin halving event is expected to cause a bull run few months before the event and a massive bull run a year after the event for some reasons including speculations and the interplay of demand and supply. With the Bitcoin halving event, the Bitcoin Evolution could be just around the corner.

Ethereum Price Prediction 2020

Interestingly, a number of cryptocurrency prediction websites expected much from Ethereum in 2020 mostly because of the huge adoption rate of the dAPP. Coinswitch, a cryptocurrency price prediction site forecasted that Ethereum would trade a maximum price of about $1100 and a minimum price of $929 in the first quarter of 2020. The second quarter will see a trading price of $1600 before the price decline to $1550 in 2020. It is too early to pass judgment on the accuracy of this prediction especially in the period the cryptocurrency market has shown signs of improvement. Ethereum has currently risen from the $129 at the beginning of the year to a current price of $220 ( as at 8 February 2020).

From the factors explained above, Ethereum will finish the first quarter of 2020 with a price range of $350 – $550. Ethereum price has had a slowly rising rate compared to the likes of Bitcoin cash, and it seems it is still gathering momentum to surge. The second quarter of the year will see Ethereum trading between $550 to $900. The price within this period will be affected by the Bitcoin halving which is scheduled in May. The Ethereum will finish the year with a minimum price of $900 and a maximum price of $1600. It is possible that the digital asset will trade above $3500 in 2021 as the adoption of its technology hits a top form.

NB: The price of Ethereum is influenced by multiple factors which makes it difficult to come out with a 100% accurate prediction. The price may fall far below the predicted prices, and may also rise far above the predicted prices depending on the interplay of other factors stronger enough to influence the direction of the price movement.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 262.78.

The projected lower bound is: 197.51.

The projected closing price is: 230.14.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 47.5146. This is not an overbought or oversold reading. The last signal was a buy 4 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 48.24. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 13 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -52. This is not a topping or bottoming area. The last signal was a buy 1 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 12 period(s) ago.

Rex Takasugi – TD Profile

FOREX ETH= closed down -4.590 at 228.460. Volume was 39% below average (neutral) and Bollinger Bands were 52% wider than normal.

Open     High      Low     Close     Volume___
233.800 233.810 227.550 228.460 97,841
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 235.97 212.51 178.62
Volatility: 95 92 76
Volume: 340,960 232,535 106,857

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX ETH= is currently 27.9% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of ETH= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on ETH= and have had this outlook for the last 3 periods.

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