Ethereum’s current price level prevents it from breaking out. Going into the year 2020, the altcoin faces more challenges in the form of increasing competition from new protocols and a maturing total market cap.
Naturally, no one can predict what will happen to ETH prices in 2020. However, if Ethereum wishes to break out of this bear market and finally reach its all-time highs again, it will need a significant bull run that is not likely when we consider current conditions. First off, there are a lot of new platforms. Being released soon that pose significant competition to Ethereum such as EOS and Cardano. Secondly, the market is already quite mature and the altcoin’s current price level prevents it from breaking out.
Going into the year 2020, the altcoin faces more challenges in the form of increasing competition from new protocols and a maturing total market cap. Above all, Ethereum has a long way to go before reaching its all-time highs again as it still has a lot of room to grow if we consider its total market cap as well as its easily accessible daily trading volume.
Biggest Challenges Ahead for Ether
There are several reasons why Ethereum is facing an uphill battle even if its price reaches the sky. The next five years will see significant changes to the crypto industry as blockchain technology and smart contracts become more mainstream. There are a lot of new platforms release that pose significant competition to Ethereum such as EOS, Cardano, NEO and Stellar. Even some of these platforms may surpass Ethereum in terms of functionality and portfolio value in the long run.
Secondly, there is already a lot of money invested on this platform which means the available liquidity will be used up quick. There will be less market volume, meaning it will be difficult for ETH to have a bull run.
Most of the Biggest Crypto Exchanges Are Still Trading ETH
Even though there was a lot of FUD coming from different media outlets regarding the top digital currency exchanges, Ethereum is still trading at most of them. Coinbase, Kraken and Gemini are just some of the top exchanges that have not removed Ethereum from their list. However, this situation may change relatively quickly as Ethereum’s price may rise if it reaches a new all-time high in 2020. In order for this to happen, Ethereum must first breakout out of its downward-sloping channel and go through some major resistance levels such as $120.00 and $200.00. This can only happen if the altcoin becomes more liquid and is able to compete with the current total market cap, which currently sits at $205.91 billion. This will give Ethereum a lot more room to grow if it manages to navigate past these resistance levels.
How a Major Bull Run Could Help ETH Price
So as we discussed above, Ethereum’s value of $200 would definitely make a lot of people happy and hopefully provide Ethereum with some much needed liquidity in the long run. It would also allow the altcoin to once again be the king among altcoins in terms of market capitalization and daily trading volume. It would be the perfect time for the altcoin to once again lead the market.
However, even if many of these hurdles are cleared and ETH performs exceptionally well in 2019, there is always a possibility that Ethereum will have to face some more challenges. Thanks to increased mainstream adoption of blockchain technology and smart contracts, Ethereum’s value and total market cap could suffer a bit by mid-2019. This may take a toll on ETH prices as well due to increasingly low liquidity. However, the history of Bitcoin has shown us that it is possible for BTC prices to increase rapidly over a short period of time after experiencing significant growth in 2019.
