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||76.4%||50||$49 128.70||-7.55%||-10.26%||$928 110 420 973|
|2||ETH||Ethereum predictions||81.2%||36||$4 120.96||-1.29%||0.92%||$488 780 881 496|
|3||BNB||Binance Coin predictions||80.8%||32||$562.73||-3.52%||-6.79%||$93 864 649 605|
|4||USDT||Tether predictions||92%||1||$1.001430||0.08%||0.06%||$74 263 665 994|
|5||SOL||Solana predictions||70%||62||$198.10||-2.74%||3.42%||$60 546 003 381|
|6||ADA||Cardano predictions||64%||72||$1.39||-8.63%||-9.93%||$46 287 449 057|
|7||USDC||USD Coin predictions||90.4%||2||$1.000097||-0.05%||0%||$40 029 698 519|
|8||XRP||XRP predictions||70%||66||$0.836385||-7.82%||-11.54%||$39 516 931 096|
|9||LUNA||Terra predictions||69.6%||62||$74.36||25.00%||66.02%||$28 825 591 225|
|10||DOT||Polkadot predictions||62.8%||76||$28.96||-12.18%||-17.48%||$28 604 270 701|
|11||DOGE||Dogecoin predictions||66%||73||$0.176449||-10.40%||-13.54%||$23 359 356 254|
|12||AVAX||Avalanche predictions||64.4%||75||$90.68||-11.80%||-18.97%||$22 009 485 134|
|13||SHIB||SHIBA INU predictions||62.4%||76||$0.000036||-8.88%||-7.14%||$19 722 014 052|
|14||CRO||Crypto.com Chain predictions||57.6%||86||$0.600991||-3.69%||-20.69%||$15 182 834 806|
|15||MATIC||Polygon predictions||67.6%||62||$1.97||-8.29%||22.24%||$13 803 349 402|
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