Following Bitcoin’s bullish movement, Ether’s price has reached $460: traders now expect a positive trend towards $500 and above.
On November 6, the price of Ether (ETH) reached $460 on Binance while Bitcoin (BTC) fell back to the $15,500 level after being rejected at around $15,900. Based on Ether’s strong momentum, traders expect further positive movement in the short term.
There are three potential reasons why Ether could chart a big uptrend in the coming weeks: a favourable technical structure over extended ranges, positive on-chain parameters and the launch of Ethereum 2.0.
ETH is bullish on longer intervals
In September, a pseudonym trader and analyst known as „Crypto Capo“ shared Ether’s weekly chart outlining two possible scenarios.
The bearish scenario involves a rejection from the $360 support level followed by a sharp drop. The bullish scenario shows confirmation of $360 as support and potential growth to $800.
Referring to the $360 support level, the trader commented:
„If this level holds up, we should see $815 in the coming months. Invalidation on the chart.“
In the two months following this forecast, Ether managed to defend macro support at around $360. He is currently testing the area near $460, which proved to be a strong resistance during 2020.
When a significant level of resistance is exceeded, a rapid rise can occur, which is why traders are speculating on Ether’s price significantly more than in recent weeks.
In addition, Skew data shows that the daily volume of futures on Corona Millionaire has increased considerably since the end of October. This indicates that traders have identified $460 as an important level for ETHs to defend or exceed, depending on the position.
Ethereum has fewer addresses in profit
According to data provided by IntoTheBlock, 75% of Ethereum addresses are currently in profit. In comparison, 98% of Bitcoin addresses are in profit.
In general, investors are more inclined to sell when they have large unrealised profits, leaving positions open with heavy losses. As a result, significantly fewer addresses in profit for Ether than Bitcoin is a positive parameter that supports the assumption of further continuation.
ETH 2.0 is another bullish factor
The launch of ETH 2.0 is currently scheduled for 1 December, and some analysts predict that it could cause a shortage of supply.
In the ETH 2.0 system, users can staking 32 ETHs and, in return, receive a 15% incentive on their funds. This process involves transferring ETHs to ETH 2.0 smart contract addresses. During the specified period, users cannot use or transfer their ETHs unless they decide to stop staking.
If the popularity of staking increases, as it can generate a stable return with relatively low risk, it could cause a rapid decline in the supply of ETHs in circulation, especially on exchanges.
Fewer ETHs would be sold, as users try to accumulate more and more ETHs for staking. This could lead to increased demand for the main altcoin, resulting in Ether prices above the $460 level.