Ether’s Recent Price Movement
On November 6, Ether (ETH) saw a price hike to $447 on Binance, a welcome change while Bitcoin (BTC) was taking a breather near the $15,500 mark. This pattern of price fluctuations has traders buzzing, anticipating an upcoming rally driven by Ether’s resilience.
Three Reasons for Ether’s Potential Upsurge
Catalysts brewing under the surface suggest a promising future for ETH. Let’s examine three major factors that could propel Ether into a bullish trend:
- High time frame technical structure
- Favorable on-chain metrics
- Upcoming Ethereum 2.0 launch
Technical Landscape: Bullish or Bearish?
The charts have been buzzing with activity lately. A notable trader, “Crypto Capo,” highlighted a weekly chart suggesting two potential directions for Ether. The bearish scenario involves a grim rejection at the $360 support, while the optimistic path shows support holding strong, potentially pushing prices to $800.
“If this level holds, we should see $815 in the next few months.”
With the $360 support standing firm over the last two months, and now testing the $450 resistance, traders are intensifying their scrutiny, preparing for a potential breakout if that resistance gives way.
Trading Activity: A Surge in Futures Volume
The hype is palpable, with data indicating a significant surge in 24-hour futures volume for Ether, marking a sharp increase since late October. Traders seem to be circling the $450 level, readying either to defend or to blow past it.
Profitability Landscape: Less is More?
Interestingly, only 75% of Ethereum addresses are currently in the green, compared to a whopping 98% for Bitcoin. This might sound counterintuitive, but it hints at a lower-risk selling point for Ether. The fewer addresses brimming with unrealized profits could indicate room for not just survival, but a potential upward swing.
ETH 2.0: The Game Changer
Scheduled for launch on December 1, Ethereum 2.0 features a staking system that’s causing quite a stir. By staking 32 ETH, participants not only secure their investment but can also enjoy a handsome 15% reward. This paradigm means that users can’t trade their staked ETH, leading to a potential drop in circulating supply. As more ETH gets taken out of circulation, demand could shoot up, keeping prices buoyantly above that crucial $450 threshold.
