In our annual series of forecasts we also publish several cryptocurrency and crypto market predictions, especially 2020 forecasts. In this article we show in great detail how we derive 510 USD as our Ethereum price forecast for 2020. This is a base case price target. Our bullish target is 750 USD. Our Ethereum price prediction for 2020 is bullish, but even more bullish for 2021. That’s why we predict that ultimately Ethereum will re-challenge its $1,000 price level provided crypto bull market #3 persists and accelerates. In sum we hold a bullish Ethereum price forecast for 2020, and believe in a pick-up of Ethereum prices in 2021.
Before looking at the details of our Ethereum price forecast for the years 2020 and 2021 we want to stress that InvestingHaven’s research team was the first to publish cryptocurrency forecasts in the public domain. More importantly all of them were spot-on. We also spotted major peaks and bottoms.
The only way to accurately forecast cryptocurrency trends and prices is by having a thorough understanding of this market. This includes both fundamental trends as well as technology trends. The real ‘magic’ happens when combining this with chart analysis and intermarket analysis.
Nobody else can offer this level of accuracy because traditional forecasters only use chart analysis, while technology geeks only look at fundamentals. You need both, combined, to be successful in forecasting crypto trends.
That’s why we recommend readers to take the time it needs to thoroughly read, and even study the materials in this article. We also recommend to look much deeper into fundamentals and technology specifics by signing up to the restricted cryptocurrency and blockchain investing area.
We promise, it’s worth your time and money!
Why This Ethereum Price Prediction?
This Ethereum price prediction is meant to show how to analyze crypto markets, and Ethereum in particular. More importantly, it shows the unique thinking behind our Ethereum price forecast, and how we come to reliable Ethereum predictions.
It is crucial in times of information overload to stay focused on insights that really matter!
We tend to observe crypto investors overly relying on tweets, pseudo analysts, a bunch of articles on financial media, etc.
Case in point: take this popular Ethereum investing article, it tells absolutely nothing. It talks about number of coins, technology features, comparing it with Bitcoin. Nothing, absolutely nothing, does it add to readers who are looking for the question whether they should invest in Ethereum or not. Everything is related to future price moves, that’s why the value we add with our Ethereum prediction!
Similarly, a quick review of Ethereum news headlines are so confusing that it leaves the (crypto) investor with one question: now what? Moreover, as this example illustrates, news is also a lagging indicator (as opposed to a leading indicator).
Not only is this approach confusing for investors, but it also creates an inaccurate picture of which things really matter.
We provide a detailed rationale of how to forecast Ethereum prices to show one, and only one thing: LESS IS MORE. Less information, though the right information, will deliver more results!
An Ethereum Price Forecast for 2020 and 2021
We are bullish for Ethereum in 2020, and even more bullish going into 2021.
Our base case target of our Ethereum price forecast in 2020 is $510.
Our bullish target of our Ethereum price forecast in 2020 is $750.
This is driven by 2 leading indicators: Bitcoin’s long term uptrend combined with ‘risk on’ in the global investing community (global markets).
There is no other analyst in the world taking this look and taking these leading indicators into account. InvestingHaven’s research team has a track record of forecasting Ethereum prices, all previous predictions were spot-on.
So then what is our Ethereum forecast for 2021? Obviously, with Bitcoin accelerating its bull market, and ‘risk on’ maturing in global markets, we expect Ethereum to peak near $1,000 in 2021. This forecast is subject to change based on new insights we will collect throughout 2020.
Leading Indicators for our Ethereum Price Forecast
One thing is very important to remember. Ethereum is not trading in a vacuum.
Once upon a time, especially in the period 2014 to 2017, cryptocurrencies were pretty much disconnected from other markets. There was even not a very strong correlation between Bitcoin and altcoins.
All this changed in 2017, and accelerated in 2018.
One of the important reasons is that the introduction of Bitcoin futures resulted in what we tend to call ‘intermarket dynamics’. That’s because Bitcoin futures are since December 2017 available for trading by large traders that also speculate in any other (futures) market.
We expect this acceleration to continue also in 2020 and 2021. That’s because institutional investors will have increasingly more exposure in the crypto market. Services like Bakkt only accelerate this, no matter if the first weeks and months of Bakkt saw low volumes. This is a game changer, and disruptive changes in markets need time to develop.
So as the crypto market is maturing we have to increasingly take ‘leading indicators’ into account, for any crypto prediction, also an Ethereum prediction.
For our Ethereum price forecast for 2020 and 2021 we believe we require to take 2 leading indicators into account. One leading indicator is an ‘internal’ one, within the crypto market: Bitcoin’s price trends. The second leading indicator is an ‘external’ one: ‘risk on’ sentiment among global investors especially.
Leading Indicator #1: Bitcoin, Crypto Market Leader
The first leading indicator for our Ethereum price forecast is Bitcoin’s price trend.
Here it becomes interesting.
Many out there try to create fear, especially in social and financial media. Any sell off is used to write articles or tweets with titles evoking concern and fear. Not only during sell offs do we see this, but any type of technical indicator to predict declining crypto prices.
Watch out, dear reader, as those articles and social posts are not meant to be taken seriously. On the contrary, anyone who has good writing skills has become a crypto investing guru.
All that matters is trends especially on the long term chart. When it comes to the crypto market only one trend counts: Bitcoins long term trend.
As seen on below chart Bitcoin is in a long term uptrend since 2012. More importantly it is in a bull market since April 2nd, 2019, when we published Crypto: Bear Market Officially Ends Today, Crypto Bull Market Officially Starts Today. We call it ‘crypto bull market #3’ to indicate this bull market that started on April 2nd.
As long as Bitcoin is in a bull market, especially crypto bull market #3, it is supportive of higher prices for top altcoins like Ethereum.
Our leading indicator #1 suggests a bullish Ethereum price forecast for 2020 and 2021!
Don’t listen at pseudo-gurus in the crypto investing space. Spend your precious time in an efficient way. Stay focused on the long term crypto trend as per Bitcoin’s long term price chart.
Leading Indicator #2: Nasdaq, Risk On Sentiment
The second leading indicator for our Ethereum price forecast is ‘risk on’ sentiment in the global investing community.
Here it becomes even more interesting. Hardly anyone understand what we are going to reveal now!
Because of the fact that crypto gets more embedded with global markets, which we call intermarket dynamics, we have to look for ‘risk on’ trends in global markets for crypto to remain bullish.
The one and only indicator we apply as discussed in great detail in our 100 Investing Tips per our proprietary method is the Russell 2000 index. This is THE indicator for risk in stock markets, and even to some extent a risk indicator for global markets!
As said in our 50 Cryptocurrency Investing Tips For 2020:
All investing principles apply to cryptocurrency investing. They are even more important than ever before. A strict discipline for cryptocurrency investing is mandatory for long term success.
The important take-away from below chart is that markets were in ‘risk off’ since January 2018. Any coincidence that crypto started its epic sell off in that same period?
Going into 2020 we see a new ‘risk on’ cycle starting in 2020, especially going into 2021. The one and only price point to watch for a final confirmation is 1625 points in the Russell 2000. Watch carefully what this price point means on below chart, it’s obvious but we expect readers to do some research.
Our leading indicator #2 suggests a bullish Ethereum price forecast for 2020 and 2021. Global markets will be in ‘risk on’ in 2020 and 2021, and consequently crypto markets will do the same!
Leading Indicator #3: Adoption
Last but not least, in terms of leading indicators, is the adoption of a cryptocurrency. Our whole crypto investing thesis says that this one of THE most important aspects for future value of any cryptocurrency.
Ethereum adoption looked mind boggling a few years ago, with a record number of ICOs getting live on the Ethereum blockchain. However, it appeared that the real number of users was limited for those blockchain apps. This is certainly concerning.
We don’t think it’s as concerning as explained in this article though. We think in 80/20 terms: 80 pct of blockchain (d)apps may be using the Ethereum blockchain without being successful. But a minority will be extremely successful. So the article we just mentioned is essentially representative of the whole sector, not just Ethereum.
Overall we believe Ethereum will do well, but will not outperform in terms of adoption. Ethereum is here to stay, but it has its limitations.
We see examples of cryptocurrencies developing on the Ethereum blockchain but adding specific features to deal with Ethereum’s shortcomings.
All in all leading indicator #3 does not suggest an outperformance but rather a future in which Ethereum stays ‘on par’ with Bitcoin’s trend.
Note that investors should look for outperforming cryptocurrencies. Ethereum is not part of our top crypto list. To discover #1 and #2, the real game changers, we suggest to sign up to our research service and go to the top crypto list!
Ethereum Price Targets as per our Forecast
Leading indicators suggest a bullish Ethereum price forecast for 2020 and 2021. But can we come to a more specific Ethereum prediction based on Ethereum’s chart?
Yes, we can!
The long term Ethereum chart is embedded below. It is a weekly chart.
In 2017 there was a hugely bullish move with an epic Ethereum crash (falling channel). However, the new channel that is visible on Ethereum’s price chart is this rising channel (purple shaded area). The reliability of this new rising channel is pretty high as we see already 3 touches (2 at support, 1 at resistance).
Consequently, we predict that Ethereum will rise to the top of this channel somewhere in 2020 or 2021. Our base case Ethereum forecast is 510 USD!
Do we have a more bullish Ethereum target? Yes, and that is 750 USD. This can only materialize if and when Bitcoin accelerates its uptrend.
Results of our Previous Ethereum Forecasts
We have a track record of hitting major tops and bottoms in crypto markets. We even publish them in the public domain. Obviously our premium crypto members get much more detail and actionable insights to maximize their crypto profits (sign up here).
Note that InvestingHaven’s research team was the first in the world to publish crypto forecasts in the public domain. All our crypto predictions have proven to be spot-on, especially the ones for Bitcoin, Ethereum and XRP.This is an overview of our Ethereum price forecasts from previous years. We published these predictions in the public domain, available for everyone to read.
|Year||Our forecast||Highs||Lows||Accuracy of our outlook|
|2017||Wildly bullish: target of $1,000||826||Below 10||Spot-on|
|2018||Very bearish: no price target||1,402||84||Spot-on|
|2019||Bearish but a bullish peak with target of $270||334||103||Spot-on|
Ethereum Predictions by Other Analysts
Watch out with all these Ethereum predictions out there! There is hardly any crypto analyst or writer with a track record in forecasting Ethereum prices!
Just to illustrate this point we have listed a few attempts of crypto sites trying to forecast Ethereum prices. As you can imagine most (if not all) sources are extremely unreliable! And the subjective opinions like are even worse, stay away from them!This is an overview of forecasted Ethereum prices for 2020 by other analysts. We don't support these forecasts, we just share them to illustrate how other analysts think about an Ethereum price forecast for 2020 and beyond.
|Year||Analyst||Ethereum price prediction|
|Ethereum price forecast 2020||Walletinvestor: not reliable as based on machine learning models (we consider this a massive data dump)||Bottoms at $52|
|Ethereum price forecast 2020||Coinswitch: unreliable as not based on any leading indicator and no track record||$2480|
|Ethereum price forecast 2020||Not anyone has published a reliable Ethereum forecast||No reliable predictions whatsoever!|
Continuous Follow Up on our Ethereum Forecast (free forecasting email newsletter)
We absolutely recommend to subscribe to our free newsletter in order to receive future updates. We publish updates on our Ethereum forecast. But we also do publish other forecasts.
We continuously, throughout the year, publish updates on our annual forecasts. Any revision in our forecast are published in the public domain and appear in our free newsletter. Therefore, the only way to track the pulse of markets and stay tuned with our forecasts is to subscribe to our free newsletter >>
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