The price of Ether is still on a strong uptrend momentum. After reaching an all-time high ever since 2018 earlier in September, prices took a dive reaching a strong support level. Today, the price is back up, expected to reach and break the psychological price of USD 500.
1- Ethereum TAs show a strong momentum
In a previous article, we clearly studied the price of Ether and showed a scenario 1 very likely to happen before 2021. So far, Ether’s price is doing exactly that, with a slight adjustment in prices every now and then.
In fact, back in September, the price was almost able to break the USD 500 price level, way earlier than expected, but then adjusted back to normal uptrend levels (Fig.1)
2- Little Downside, Big Upside
If prices were to heavily adjust today, there’s a very strong support level between USD 400 and USD 425 (Fig.2). But on the other side, prices are expected to break the psychological price of USD 500 and continue on their strong uptrend to reach higher price areas such as USD 700 or USD 1,000, but that’s of course on a longer timeframe.
So all in all, we’re talking about a downside of around 14.8% if prices fall down to USD 400, but the upside might be x2 and more.
3- Ethereum 2.0 is almost here
With the big promise of the highly anticipated Ethereum 2.0, interested users can deposit their required 32 ETH in the contract, in anticipation of the Genesis or the Ethereum Phase 0 launch date set for Dec 1, 2020.
Once ETH 2.0 is operational, stakers will be able to run validators and provide processing power to the new network relying on POS (Proof of Stake).
This important event should send the price of Ether through the roof, as more people will be interested in buying this asset once the project launches.
With the above three reasons in sight, one cannot but get aligned to a stronger upcoming uptrend. As traders and logical investors, you must always set your risk limits and know when to get out of the market though, as different traders have different risk appetites. Get back to our article on how to become a successful trader!