On November 6, ETH surged to $ 447 on Binance as Bitcoin (BTC) dropped to $ 15,500 after losing its strength by about $ 15,900. Based on the strong momentum in Ether, traders expect broader gains in the short term.

There are three possible reasons why Ether might see a big bullish trend in the coming weeks. Triggers: optimistic technology structure with long time frames, favorable on-chain settlements and the launch of Ethereum 2.0.

ETH is optimistic on higher time frames
In September, a trader and cartographer alias “Crypto Capo” tweeted a weekly chart from Ether with two possible scenarios.

The bearish scenario showed a rejection of the support level of $ 360, followed by a sharp decline. The bullish scenario showed confirmation of $ 360 as support and upside potential to $ 800.

Pointing to the $ 360 support level, the trader said:

“If this level continues, we should see $ 815 in the next few months. Invalidity Schedule “.
Following this forecast, Ether has successfully defended its $ 360 general support zone over the past two months. It is currently testing the $ 450 resistance level, which remained a tough resistance zone until 2020.

When it breaks through a large resistance level, an impulsive surge can occur, which is why traders speculate on the price of Ether much more than they have in previous weeks.

Skew data also shows that the volume of 24-hour Ether futures has increased significantly since late October. This shows that traders are pinning down $ 450 as the critical level of ETH and they are defending or trying to break out.

Fewer ETH address holders get paid
According to IntoTheBlock, 75% of Ethereum games are currently profitable. In comparison, 98% of Bitcoin addresses are in government surplus.

In general, investors are more likely to sell when they are sitting on a large unrealized income than when the investment is dropping significantly. As such, the far fewer lucrative names for Ether compared to Bitcoin is a positive calculation, supporting the theory that the rally has room to continue.

ETH 2.0 is another bullish factor
ETH 2.0 is currently set to launch on December 1st, and some analysts speculate that this could lead to a supply shortage.

In the Staking ETH 2.0 system, users can share 32 ETH and in return receive a 15% reward on their property. Bet means assigning ETH to ETH 2.0 node addresses. During the buffering period, users cannot use or transmit ETH unless they choose to stop buffering.

If staking grows in popularity, as it can provide stable returns at relatively low risk, it could lead to a sharp drop in the tradable supply of ETH, especially on the stock exchanges.

Less ETH will be sold and more will accumulate as users place bets on their holdings. This could increase demand for higher altcoins and cause Ether to remain above $ 450.

Source: CoinTelegraph