Beyond a tradeable cryptocurrency, Ethereum is a decentralized platform that runs smart contracts. Ether is also used by application developers to pay for transaction fees and services on the Ethereum network. The January has been a very negative month for the cryptocurrency market, all major cryptocurrencies are still falling and the price of Ethereum is also pressured by this situation. Although the price can weaken even more the current price represents a very good entry level for the long term investors. The current price of Ethereum is very close to the strong support level which stands around $100 and if you’re looking to invest in Ethereum, you would be able to make good returns according to the price predictions in the next several years. Some estimates say that Ethereum could be worth more than $5000 in the next several years, in my opinion, this is still a too optimistic scenario but I can agree that ETH is currently at a point where it has the potential to make very big gains. I would recommend everybody to be careful and to invest a small sum of money in Ethereum, the best time period for me is between 3-5 years, hold and wait.
The ongoing sell-off surrounding cryptocurrencies weighed on Ethereum and the price of ETH has weakened very close to $100 support level. In my opinion, Ethereum has a very good risk/reward ratio in the market right now which means you stand to gain a lot more for taking a comparatively smaller risk. The current resistance levels are $200, $300 and $400, $100 represents the current support level. It is very hard to predict where the price of ETH will go, but if the price jumps above $200 it would probably reach $250 in the short time period. If the price jumps above $400 we have an open way to $500. If the price drops below $100 support that would be a strong “SELL” signal.
Recommendation: If you’re looking to invest in Ethereum, you would be able to make good returns according to the price predictions in the next several years. The future actually looks bright for Ethereum but investors should have in mind that Ethereum isn’t the only privacy coin competing for market share and some other cryptocurrencies could potentially limit the adoption of Ethereum. According to the technical analysis, if the price jumps above $200 that could be a very good opportunity for the short term traders, short-term traders can put the stop loss at $190 and take profit at $250 or above.