Bitcoin is close to $16,000, but it’s the Ethereum that can shine in November

After the strong Bitcoin rupture above $15,000, analysts are looking to Ether as market sentiment around the Ethereum strengthens.
The price of Bitcoin (BTC) is approaching $16,000 after reaching $15,960 at Binance. After the rise of the dominant cryptomeda, analysts are now looking at Ether (ETH). The Ethereum block chain’s native token had a high momentum last week. After a lower performance than the BTC in October, the likelihood of a new ETH bump is beginning to rise.
There are two main reasons why analysts expect Ether to perform strongly in the short term. First, capital in the Bitcoin market may move to ETH after the announcement of the Ethereum 2.0. Secondly, ETH has recently tested a critical level of resistance, increasing the chances of a wider rally. Given that the altcoin market has historically recovered after an initial increase in Bitcoin, the timing of an upward trend in ETH is ideal.

Will Bitcoin’s capital move to Ether?

Since October 21st, the price of Bitcoin has increased by about 33%. It has moved out of important areas of resistance one after the other, starting with $13,000. When Bitcoin initially exceeded $13,000, large groups of whales formed at that level. It showed that the whales began to actively accumulate BTC, making $13,000 a support area.
After BTC claimed $13,000 as a support level for the first time since July 2019, it continued to rise. Over time, he confirmed $13,500 as the next support level, followed by $14,000 and most recently $15,000. When Bitcoin started to rise, analysts said it was negative for altcoins, as it started sucking most of the market volume out of the cryptominoes. As a result, as Bitcoin recovered, many altcoins lost their value against Bitcoin and the US dollar.
The overwhelming strength of the Bitcoin from October to early November had a strong impact on the altcoin market, but the Bitcoin price action showed that the market sentiment around cryptomycin had returned. As such, a clean break above $15,000 could trigger more capital willing to play high-risk, which includes Ether.
Denis Vinokourov, head of crypto exchange and Bequant broker research, told the Cointelegraph that Bitcoin’s capital could enter the Ether and Ethereum ecosystem. In the last 48 hours, the decentralised financial market has performed particularly well, after stagnating since early September.
DeFi tokens, such as YFI from and UNI from Uniswap have increased by almost 30% after Ether’s abrupt recovery. Therefore, Vinokourov stressed that the wider Ethereum ecosystem could soon benefit from the Bitcoin rally:
“All eyes could be on the Bitcoin and the increase beyond the $15,000 level. However, the recent development update related to the Ethereum may result in some capital spinning back into the Ethereum and its wider ecosystem. This does not mean that Bitcoin will be actively sold, but the tendency to block Bitcoin in the Ethereum network may accelerate and be put to work on oversold DeFi and DEX tokens such as Uniswap. “
At the top of Ether’s historical trend to rise after a Bitcoin bump, crypto traders said that ETH may soon rise against Bitcoin. Michaël van de Poppe, a full time broker on the Amsterdam Stock Exchange, said the ETH/BTC trading pair had reached an important support area. Van de Poppe said “It took a long time but $ ETH reached the 0.026 area we have been discussing a lot” referring to this as a large support area for ETH.

Launch of Ethereum 2.0 doing its part

The launch of Ethereum 2.0 in the imminent future is key to Ether’s momentum, as upgrading the network would significantly increase ETH’s transaction capacity. This would allow the new DeFi cycle, if it emerged, to last a long time, as it would reduce the risk of network clogging and high transaction fees. Since Ethereum 2.0 supports stakes, it allows users to allocate 32 ETH to the network in exchange for incentives, which can decrease the current ETH supply between exchanges.
According to a blog post by Ethereum co-founder Vitalik Buterin entitled “Why Proof of Stake”, betting on Ethereum will reward users with a 15% return. As the rate of return is based on ETH shares and not the US dollar, if the ETH price continues to rise, the betting incentives increase with it. As such, analysts expect more investors to accumulate ETH to bet on the currency, which would decrease pressure on the seller’s side.
The market and the community have been waiting for Ethereum 2.0 for several years, but the challenges have delayed its launch. The Ethereum 2.0 required several test networks with an immense amount of testing due to the complexity of the upgrade. The developers behind Ethereum 2.0 wrote on the Github page of Medalla testnet:
“Before such mainnet can be released, we need testnets that mimic the conditions of mainnet in the best possible way. This requires that we have stable, long-term and persistent testing networks installed and running, with support not only from one client, but from several clients, preferably all clients. “
The feeling around Ether has become increasingly optimistic because the launch of Ethereum 2.0 coincides with several favourable ETH catalysts. A cryptomime trader with a pseudonym known as “Loma” identified the fact that Ethereum 2.0 will remove about $1 billion from the market. As the offer falls, the Bitcoin bullishness is bringing significant capital back into cryptomeda, as the ETH/BTC trading pair is forming a lower formation.
The excitement surrounding the Ethereum 2.0 has intensified after Buterin’s personal portfolio sent 3,200 ETH to a deposit address on the Ethereum 2.0. According to the official release notes of the Ethereum 2.0 by coordinator Danny Ryan, if there are 16,384 deposits of 32 ETH seven days before December 1, the update of the Ethereum 2.0 can begin. After years of research, testing and implementation, there is finally a release date.
The coming confluence of the Ethereum 2.0 would benefit the entire Ethereum and DeFi ecosystem in terms of scale, and the strength of the ETH/BTC commercial pair makes a high in November and December more likely. There is also the story that the ETH rose significantly in January 2018 to its highest record of $1,419, almost a month after BTC reached its record of $20,000.

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