Following the upward movement of Bitcoin, the price of Ether has risen to $ 447, and traders now anticipate an upward trend of $ 500 and beyond.
On November 6, the price of Ether ( ETH ) rose to $ 447 at Binance while the price of Bitcoin ( BTC ) retreated to the $ 15,500 level after losing strength around $ 15,900. Based on Ether’s strong momentum, traders anticipate that a broader recovery will emerge in the short term.
There are three potential reasons why Ether could see a major upward trend in the coming weeks. The catalysts are: an optimistic, high-term technical structure, favorable on-chain metrics and the launch of Ethereum 2.0.
ETH is optimistic about higher deadlines
In September, a trader and chart pseudonym known as “Crypto Capo” tweeted a weekly Ether chart describing two possible scenarios.
The bearish scenario showed a rejection of the $ 360 support level, followed by a sharp drop. The bullish scenario showed confirmation of $ 360 as a support level and a potential run up to $ 800.
Referring to the $ 360 support level, the trader said : “If that level continues, we should see $ 815 in the coming months. Invalidation in the chart. “
Since making this prediction, Ether in the past two months has successfully defended the $ 360 macro support area. He is currently testing the $ 450 resistance level, which remained an area of strong resistance throughout 2020.
When a high level of resistance is broken, a breakout high can occur quickly, which is why traders are speculating on the ether price much more than in previous weeks.
Skew data also shows that the future 24-hour volume for Ether has increased substantially since the end of October. This shows that traders are targeting $ 450 as an important level for ETH and are defending or trying to overcome it.
Fewer owners of ETH addresses make a profit
According to IntoTheBlock data , 75% of Ethereum’s addresses are currently making a profit. In comparison, 98% of Bitcoin addresses are profitable in the state.
Investors are generally more likely to sell when they have large unrealized profits than when their investments decrease significantly. As such, a substantially smaller number of profitable addresses for Ether compared to Bitcoin is a positive metric that supports the thesis that the rally has room for continuation.
ETH 2.0 is another high
The launch of ETH 2.0 is scheduled for December 1, and some analysts speculate that this could cause a shortage of supply.
In the ETH 2.0 betting system, users can bet 32 ETH and, in return, receive a 15% incentive on their stakes. The stakeout process means allocating ETH to ETH 2.0 contract addresses. During the stakeout period, users cannot use or transfer their ETH unless they choose to stop the stakeout.
If the popularity of staking grows, as it can generate a stable income with relatively low risk, this would cause the circulating supply of ETH to decrease dramatically, especially in the exchanges.
Less ETH would be sold and more would be accumulated as users started to bet their stakes. This could create greater demand for the higher altcoin and result in keeping the Ether price above the $ 450 level.