Ether price has surged above $580 in recent days, but the impending release of Ethereum 2.0 isn't the only catalyst driving the current rally. Alongside the high anticipation for Ethereum 2.0, the high time frame breakout and daily gas usage on Ethereum remain key positive factors.
The Eth2 mainnet will launch when the number of Ether (ETH) staked in the Eth2 deposit contract address hits 524,288. Data from CryptoQuant found that the value staked in the Eth2 deposit contract address is showing a correlation with the ETH price.
Ki Young Ju, the CEO of CryptoQuant, noted that the correlation is seemingly growing as the launch date approaches. He wrote: “As the ETH 2.0 launch date approaches, it seems to be a growing correlation between $ETH price.”
This trend has been anticipated by analysts because of the significance of Eth2. When activated, Eth2 is expected to improve the transaction capacity of the Ethereum blockchain network. Since nearly $300 million worth of ETH would get deposited into the Eth2 deposit contract address, it could also decrease the selling pressure on ETH over the long term.
The price of ETH broke above $500 for the first time since May 2018, breaking out from a two-year range. It has already risen above $580 since, demonstrating strong momentum and with little resistance above $620. If ETH surpasses $620, the next high time frame resistance levels are found at $784, $915 and $1,200. Traders expect ETH to hit $620 in the short term and possibly consolidate under it until the next breakout occurs.
A pseudonymous trader known as “Rookie” said ETH could hit $620 in a matter of days, as it shows strong technical momentum.
Although both Bitcoin (BTC) and ETH prices pulled back during the weekend, analysts say that TWAP algorithms could cause the momentum to resurge once again. Qiao Wang, a quant trader and analyst, wrote: “The reason why weekends exist is to shake out the weak hands before institutional buyers turn on their TWAP algos again on Monday.”
According to on-chain data from Etherscan, the daily gas usage on Ethereum is hovering at an all-time high. The term “gas” refers to transaction fees on the Ethereum blockchain network. When gas usage is high, the on-chain user activity is rising. The increase in daily gas usage likely comes from two sources: deposits to the Eth2 address and growing number of decentralized finance, or DeFi, users.
|#||Crypto||Prediction||Accuracy||CVIX||Price||24h||7d||Market Cap||7d price change|
|1||BTC||Bitcoin predictions||61.2%||89||$29 830.80||2.19%||-0.06%||$568 243 367 260|
|2||ETH||Ethereum predictions||60%||88||$1 978.78||0.62%||-2.65%||$239 264 661 104|
|3||USDT||Tether predictions||94.8%||1||$0.998948||-0.01%||0%||$73 198 034 338|
|4||BNB||Binance Coin predictions||58%||85||$332.68||3.46%||10.72%||$54 319 345 181|
|5||USDC||USD Coin predictions||94.4%||1||$1.000136||0.03%||0.01%||$53 412 996 775|
|6||XRP||XRP predictions||58.4%||91||$0.404298||-0.23%||-5.30%||$19 544 998 936|
|7||BUSD||Binance USD predictions||96%||1||$1.001442||0.19%||0.27%||$18 332 749 036|
|8||ADA||Cardano predictions||56.4%||92||$0.518095||1.03%||-7.86%||$17 480 010 174|
|9||SOL||Solana predictions||56.8%||92||$49.23||0.27%||-10.01%||$16 702 932 943|
|10||DOGE||Dogecoin predictions||56%||88||$0.083177||0.07%||-6.02%||$11 035 092 589|
|11||DOT||Polkadot predictions||59.6%||92||$10.02||1.90%||-3.47%||$9 896 804 667|
|12||WBTC||Wrapped Bitcoin predictions||60.4%||89||$29 797.90||2.06%||-0.08%||$8 224 307 082|
|13||AVAX||Avalanche predictions||60.4%||91||$28.68||-0.32%||-14.23%||$7 766 240 935|
|14||TRX||TRON predictions||73.6%||57||$0.081485||5.37%||12.78%||$7 711 237 884|
|15||DAI||Dai predictions||94.4%||1||$1.000233||0.06%||0.05%||$6 576 996 511|
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