The Ethereum price prediction is here as the crypto market continues to grow explosively today. Ethereum is dangerously close to its all-time high of January 2018. It is currently trading at $1,200, which is high, as it was “only” $700 at the beginning of the year. In just one week, we recorded an incredible 40% growth, with Ethereum, with its latest upward move, making it one of the 100 most considerable assets in the world by capitalization.
The capitalization of this project is currently $140 billion, making it the second-largest cryptocurrency. Ethereum accounts for about 14% of the crypto market. It has grown faster than Bitcoin during the last twelve months.
Ethereum price prediction is connected with the growth of Bitcoin
With the rising price, traders began to peek not only at the current historical maximum but high above it. There is also talk of overcoming $2,000. The foundations for such growth are right there.
At the beginning of December 2020, Ethereum finally took the first real step towards the transition to a new, more technologically advanced decentralized network. The Ethereum 2.0 project has been in development since the beginning and is only becoming a reality. And it’s time for it. This platform has finally found use in the real world. In 2020, high-quality DeFi projects offering financial services (exchange offices, loans, stablecoins, lending) expanded into the mainstream.
So, there is room for the Ethereum price growth. Also, vast amounts of capital are now flowing into the cryptocurrency market from retail investors, who respond to rising prices, and from institutions, which are pushing billions of dollars every week into Bitcoin (but increasingly also into other cryptocurrencies).
Where does Ethereum stop? – The Fibonacci method
These are the main reasons why we expect further price growth of Ethereum. How high can we go? Hard to say. The last unequivocal resistance is, of course, the all-time high from January 2018. On the Bitstamp exchange, it is $1,421. Ethereum, therefore, has room to grow by at least 15%.
And what’s higher? After overcoming the three-year-old historical maximum, Ethereum can react similarly to Bitcoin, and exponential growth occurs. In this case, the Fibonacci Extension method will give us a pretty good overview of possible resistances.
It shows that Ethereum price growth will hit the first significant resistance at the level of $2,000. This makes sense, as it is a round number and a strong psychological barrier that the problem will overcome. Many traders around $2,000 will start making a profit. Still, Ethereum cost $100-200 ten months ago. The one who bought it, already earned today and does not need to take any further risks.
According to the Fibo indicator, another strong resistance is around $3,000. Again, a round number, so that makes sense. If Ethereum price growth decides to go even higher, it can hesitate to $4,250.