Ethereum Price Analysis – 3 Things to know before 2021

Ether is still a much-undervalued cryptocurrency, especially before the launch of ETH2.0. The year 2020 was a good year for the coin that brings “Smart Contracts”, a much-needed element in today’s world.

Despite many negative views on the cryptocurrency market, most coins gained significantly in 2020, and that’s on top of having a rough year. In fact, Ether is no exception.

Ether stats in 2020

  • Starting price in Jan 2020: USD 130 (Blue box fig.1)
  • Price at the time of writing: USD 375 (White box fig.1)
  • Price change: +188%
Chart showing the price of ETH in 2020 YTD
Fig.1 ETH 1D price chart in 2020 – TradingView

ETHER: 3 Things to know before 2021:

If Ether was not on your watchlist this year, you probably missed out, but it’s not too late to add it back to your portfolio. Here are our 3 THINGS TO KEEP IN MIND WHEN APPROACHING YOUR LONG TRADING STRATEGY IN ETHER:

1. Know your trading strategy

A big mistake most traders do,
be it in legacy markets or crypto markets, is not having a predefined
strategy. Are you trading for the short term? What is your exit strategy in
case things go south? When will you take your profits?

You might think that those are
inane questions, but in fact, those are all extremely important questions anyone should ask himself before
entering any trade.

“If you fail to plan, you are planning to fail”

Benjamin Franklin

2. Set your stop Loss ALWAYS

For swing traders (setting trades over a period of a few days to several weeks), if you are buying Ether today, it is advisable to set your stop loss around the support yellow line of $250 to $300, depending on your risk management strategy (in fig.1).

Any major price dip below that level will carry the price to the next support area, which is around $130 (The starting price of Ether this year). Setting your stop loss this way is not a way to get out permanently, but it’s a way to buy back at a better price. Remember, you are looking to make huge gains in the long run. Ether is not a small altcoin anymore.

3. Keep an eye on the whole crypto market

As stated in our previous article, Ether’s price is highly correlated to the price of Bitcoin, a cryptocurrency with 60% dominance. This means that any major news affecting the cryptocurrency market will definitely have a big impact on the price of Ether. Being able to catch the news and react accordingly will be of a BIG advantage to you.

Recently, the Fed Chair Jerome Powell said that the Fed is still looking
into digital currency.
How will
this news impact the cryptocurrency market?  

Chart showing the weekly price of ETH from 2018 till 2020
Fig.2 ETH 1W price chart – From 2018 to 2020 – TradingView
  • After the
    big rise, came the big fall in 2018
  • Sideways market
    in 2019
  • Uptrend in

Looking at fig.2, one can’t but assume that the bear market is coming to an end in 2020, with the hopes of having an extended uptrend in 2021, especially with the soon to be launched “phase 0” of Eth 2.0, which should be launching in late 2020. Ethereum will become a proof-of-stake blockchain, which is a huge change carrying huge benefits, higher transaction speeds, and lower gas fees.

Stay ahead, stay updated
Rudy Fares

Nexo – Your Crypto Banking Account

Instant Crypto Credit Lines™ from only 5.9% APR. Earn up to 8% interest per year on your Stablecoins, USD, EUR & GBP. $100 million custodial insurance.


This post may contain promotional links that help us fund the site. When you click on the links, we receive a commission – but the prices do not change for you! 🙂

Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.

Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future. 

Posted By

Rudy Fares

Equity Trader, Financial Consultant, Musician and Blockchain Aficionado. I spend my time doing Technical and Fundamental Analyses for Stocks, Currencies, Commodities and Cryptocurrencies.

You might also like

More from Ethereum

Ethereum Price Analysis: ETH Price Gains 12% In 7 Days

The Etheruem price is displaying good growth, the ETH price has gained almost +12.39% in the last 7 days. At the …

Ethereum Price Analysis: Will ETH Price Recover?

The Etheruem price has been declining from the past 30 days. In the last 7days, the ETH price has decreased by almost …

Ethereum Price Formed A Potential Double Bottom While ETH 2.0 Gets Closer

Etheruem has been trading inside a downtrend since September 1 after peaking at $488 on Binance. The digital asset is …