Ethereum price prediction 2020
Ethereum development over the past years is best described as spectacular. Not just because of the price increase, but mainly because of the technical improvements that have been implemented on the network. 2020 is looking promising for Ethereum already as well!
The difference between Ethereum and ether
Before we continue, it is important to be clear about the difference between Ethereum and ether. These two terms are often confused.
That does not necessarily matter, most investors know what you mean if you use one of the two terms, but there is a substantial difference.
Ethereum is the name of the network, the blockchain and the foundation. On the Ethereum network it’s important that there is a token that represents a certain value. Users need to be able to pay each other and miners need to be able to receive a reward for the work they are doing.
This is where ether comes into play. Ether is the cryptocurrency that runs on the Ethereum network. Many investors refer to Ethereum when they actually mean ether, which is okay but now you know the difference.
What will ether be worth in 2020?
We know for sure that you have come to this page looking for an answer to this question. We see you!
Unfortunately, we can’t provide you with an answer. It is incredibly difficult, if not impossible, to predict the exact ether price. But what you could do is look at previous price developments.
A good indicator is for example the ROI, or the Return On Investment. What return do you get if you invested in ether a year ago? You can see that on our Ethereum price page:
You can try to predict the ether price with the help of a technical analysis. By discovering patterns in the course it’s possible to sketch different future scenarios. That may sound difficult, but we can help you with that.
But to understand the ether price, technical analysis aren’t the only factor to take into account. News about ether and Ethereum usually have an impact on the price as well.
In 2017, for example, Ethereum announced a partnership with various tech companies that wanted to build applications on the Ethereum network. Shortly after the announcement the price increased strongly.
And do you remember Cryptokitties? Even though it is a game, it’s still the most famous application on the Ethereum network. The popularity of Cryptokitties contributed to the rising ether price as well.
If more popular apps are launched on the Ethereum network in 2020, the price may well rise again.
Another important development in 2020 could be ether ETF’s. If an ETF gets approved by the American Security and Exchange Commision (the SEC), this could have a big impact on the price. An ETF is used to speculate on the ether price.
Last but not least technological improvements of the Ethereum network could affect the ether price as well. 2020 has something special in store for the Ethereum network. This year Ethereum will switch from Proof of Work to Proof of Stake. Proof of Stake is an alternative technique to validate transactions. It takes less energy and computing power than bitcoin’s Proof of Work does.
It’s certain that 2020 will be an exciting year for Ethereum and the cryptocurrency market. We will keep you up to date of all the latest news and developments!