November 6th The price of Ether (ETH) rose to $ 447 on Binance as the price of Bitcoin (BTC) fell to $ 15,500 after losing around $ 15,900 in steam. Due to Ether’s strong momentum, traders expect a wider rally in the near future.
There are three possible reasons Ether could see a big uptrend in the coming weeks. The catalysts are an optimistic technical structure with a long time frame, cheap on-chain metrics and the introduction of ETH 2.0.
ETH is optimistic about longer periods
In September, A pseudonymous charter and trader named “Crypto Capo” tweeted a weekly ether chart describing two possible scenarios.
The bearish scenario showed a rejection of the USD 360 support level followed by a sharp decline. The bullish scenario showed a confirmation of USD 360 as the support level and a potential run of up to USD 800.
Regarding the support level of $ 360, the dealer said::
“If this level is maintained we should see USD 815 in the next few months. Invalidation in the diagram “.
Since he made that prediction for the past two months Ether has successfully defended the macro support area of $ 360. It is currently testing the resistance level of $ 450, which will remain an area of great resistance through 2020.
If a large resistance level is breached, a breakout rally could take place quickly and therefore traders are speculating much more heavily on the price of Ether than they have been in the past few weeks.
Skew data also shows that 24-hour futures volume for Ether has increased significantly since late October. This shows that traders are pointing to $ 450 as an important level for ETH and defending it or trying to break it.
Fewer ETH address holders have profits
According to IntoTheBlock data75% of Ethereum addresses are currently profitable. In comparison, 98% of Bitcoin addresses have a state advantage.
Usually, Investors are more likely to sell when they make large unrealized gains than when their investments decline significantly. Therefore, a much lower number of winning addresses for Ether compared to Bitcoin is a positive metric that supports the thesis that the rally offers room for continuation.
ETH 2.0 is another bullish factor
Nowadays, The start of ETH 2.0 is planned for December 1st and some analysts speculate that this could lead to a supply shortage.
As part of the ETH 2.0 participation system, users can use 32 ETH and receive an incentive of 15% to participate. The participation process means the assignment of the ETH to the addresses of the ETH 2.0 contract. During the stakeout period, users will only be able to use or transfer their ETH if they choose to stop staking out.
If the popularity of gambling increases, as it can generate a stable return with relatively little risk, the circulating supply of ETH would decrease dramatically, especially on the stock exchanges.
Less ETH would be sold and more would accumulate as users stake their holdings. This could lead to higher demand for the top altcoin and cause the price of ether to be above the $ 450 level.