Ethereum Price Analysis

Three reasons for Ethereum to reach $ 500 by the end of 2020


Following the jump in the price of Bitcoin, the price of Ethereum also increased significantly to $ 447. Traders expect the digital currency to reach a peak of $ 500 in the near future as it continues its upward trend.

To Report The Ethereum rose to $ 447 yesterday (Friday) as Bitcoin fell from $ 15,900 to $ 15,500. Given Ethereum’s current upward momentum, traders believe that the digital currency will continue to grow, at least in the short term.

There are three reasons why Ethereum continues to rise in the coming weeks. These three reasons are: the optimistic technical structure of the Ethereum chart over the long term, the positive indicators within the chain, and finally the launch of the expected Ethereum 2.0 update.

Earlier, a trader nicknamed Crypto Capo tweeted in a weekly Ethereum chart that there were two possible scenarios for the digital currency.

In the first scenario, which is a downtrend, it is likely that after a sharp drop, we will see the support level weighing in the range of $ 360. In the second scenario, however, which is an uptrend, it is likely that with the approval of the $ 360 level as a support level, the price of Ethereum could reach the 800 threshold.

Bitcoin Chart
Ether price chart. Source: Trading View

“Crypto Capo writes with reference to the $ 360 support level:

If this level is maintained, it is not too far from expecting to see a price of $ 815 in the coming months.

Since the release of the crypto capo forecast, Ether has been able to strongly defend the $ 360 support range. The digital currency is currently testing the $ 450 resistance level; The surface is still a strong resistance barrier in front of the Ethereum.

With the failure of this resistance level, breakout is expected to occur quickly; That is why traders predict that the price of ether will increase more than in previous weeks.

Data from the analytical platform Skew also show that the volume of futures trading in the last 24 hours after the end of October has increased significantly since then. This indicates that traders have opened a special account at the level of $ 450; The surface that the Ethereum either defends or tries to cross.

Three reasons for Ethereum to reach $ 500 by the end of 2020
Daily volume of futures contracts. Source: Skio

Data from IntoTheBlock also shows that 75% of Ethereum addresses are currently profitable. In this respect, the situation of Bitcoin is much better and now, 98% of its addresses are profitable.

Undoubtedly, when investors are faced with large amounts of unrealized returns on their assets, they are more likely to sell their assets. Thus, the huge difference between the addresses in Ethereum and Bitcoin profits could be a sign that Ethereum is still growing.

Ethereum 2.0 is expected to launch on December 1. A number of analysts believe that the occurrence of this event could lead to a shortage of ether supply.

According to the Ethereum 2.0 share system, users can share 32 ethers and enjoy a 15% bonus in return. Sharing actually means allocating ether to Ethereum 2.0 contract addresses. During the shareholding period, users can not move or use their ethers and can only withdraw their assets by stopping the shareholding.

If equity can take its place among users, it can make a steady, relatively low-risk profit. With this method in place, the number of circulating ethers will be greatly reduced.

As more users participate in the shareholding system, fewer ethers are sold; As a result, it is not too far-fetched to expect the price of this digital currency to break the $ 450 resistance barrier as demand for ether grows sharply.

.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button