The Biggest Trends in Trading Ethereum We’ve Seen in 2020

The Biggest Trends in Trading Ethereum We've Seen in 2020

The development of Ethereum in recent years is quite spectacular. Not only because of the price increase on the cryptocurrency exchange market but above all because of the technical improvements implemented on the network. The future is already looking promising for Ethereum!

The difference between Ethereum and Ether

Before continuing, it is important to be clear on the difference between Ethereum and Ether. These two terms are often confused.

When we talk about Ethereum, we are talking about the entire blockchain network based on smart contracts which are, simply said, the type of accounts integrated into this network.

That’s where Ether comes in. Ether is the cryptocurrency generated on the Ethereum network. A lot of investors talk about Ethereum when they talk about Ether, which is okay in itself, but now you know how to tell the difference.

Ethereum Price Swings

Today’s price of Ethereum is approximately $400. Trading volume per day reaches $12,717,937,863 with a market capitalization of 4.6 billion. Its time high the ETH reached three years ago with the ETH USD price of 1,448.18 per coin.

During the last several months we could see announcements regarding the development of a new Ethereum blockchain network called ETH 2.0. This shift toward ether 2.0 was long-awaited from the cryptocurrency enthusiasts. On October 21 the first testnet was launched.

The Ethereum upgrade has 3 phases, and the first one has just begun with fewer bugs and sufficient participation on the network. The Ethereum 1.0 will continue its life since the two networks don’t have much interaction.

Performance of ETH in 2020

Ethereum started 2020 with the approximate price of $130 and according to the upside momentum of the crypto market continued to grow in value. In February it reached $279 per coin. This boost of Ether’s value is due to general rising interest in the crypto assets as well as the announced improvement in network and development of the ether 2.0 during 2020.

After the founder of Ethereum Vitalik Buterin announced the launch of the Ethereum 2.0 the value of Ether stayed above $250. But the value started to decrease when Covid 19 started generating uncertainty regarding the global economy.

The value continued to drop when CryptoKitties announced to leave the Ethereum blockchain network. The coin reached its lowest price in March when it was as low as $95.87.From April to today the Ethereum price was on a roller coaster going from 184 in May to around $400 per coin. Today, according to many analysts, Ether seems more bullish compared to bitcoin. Some even think it will surpass BTC and become the best performing crypto in 2020.

How to make an ETH price forecast?

It is incredibly challenging, if not impossible, to make Ethereum price predictions. But what you could do is observe the past price movement and trends in trading ethereum.

A good indicator is the ROI, or the return on investment. Or you can try to predict the price of Ether using technical analysis. By discovering models in the course, it is possible to sketch different future scenarios. It may seem difficult, but we can help. For example, you can check out our technical analysis page.

But to understand the price of Ether, technical analysis is not the only factor to consider. News about Ether and Ethereum usually has an impact on the price.

In 2017, Ethereum announced a partnership with various tech companies who wanted to develop applications on the Ethereum network. Shortly after the announcement, the price rose sharply.

Do you remember the Cryptokitties? Even though it’s a game, it’s still the most well-known app on the Ethereum network. The popularity of Cryptokitties has also contributed to the rise in the price of Ether.

If more widespread applications are launched on the Ethereum network in 2020, the price may well rise.

Another important development in 2020 could be that of Ether ETFs. If an ETF is approved by the American Security and Exchange Commission (SEC), it could have a significant impact on its value.

Finally, technological improvements in the Ethereum network could also affect the price of Ether. 2020 has something special in store for the Ethereum network. This year, Ethereum will move from Proof of Work to Proof of Stake. Proof of stake is an alternative technique for validating transactions. It consumes less energy and computing power than Bitcoin’s proof of work.

Final Thoughts

2020 was certainly an exciting year for Ethereum and the cryptocurrency market. Over the past several months, we could see multiple ups and down on the crypto market. Most of the talk revolves around the optimistic future of digital assets. Still, there are many doubts and questions.

If you consider investing in Ethereum, you need to be updated with the latest news and financial events worldwide taking into account experts’ opinion and technical analysis of the markets. For those who are not entirely sure to commit to the long term investments, there are contracts for difference. Since the Ethereum price movements are frequent, it represents an excellent asset for investors willing to take advantage of eth price swings.