Bitcoin over the past week has broken key resistance of $15,000 and currently positioned to surpass its 2017 all-time-high of $20k. At the same time, altcoins have suffered dearly as it seemed that people were moving funds to bitcoin in the ongoing bullish burst. However, the second-largest cryptocurrency by market cap Ether (ETH) is gaining a similar momentum to that of Bitcoin and on-chain key metrics suggest that the second-largest digital currency might be in line to observe a similar bullish rally by the end of 2020.
ETH has been moving between the price range of $330-$350 for the past month and finally managed to ride on Bitcoin’s momentum to be currently valued at $458. ETH has managed to gain around $100 USD over the past week where its prices grew from a weekly low of $371.31 to $465.68.
The number of ETH addresses sending funds to exchange has declined by 53% since September 1st, which is a bullish sign as traders tend to move money away from exchanges when anticipating a bullish move. Let us look at some of the key on-chain metrics which indicates a possible bullish burst quite similar to Bitcoin in near future.
Ethereum network is seeing a spike in terms of active addresses suggesting more traders are joining the blockchain in hope of the next bull run for ETH. The volume of addresses growing in the month of November is in accordance with the increasing price.
The number of ETH wallets holding at least 0.01 ETH token has peaked at a new all-time-high in 2020 reaching 10,116,076.
Apart from that, the total transfer volume comparison between bitcoin and ether over the past couple of month shows a similar pattern, suggesting the on-chain transactions on both the blockchain is quite similar.
Low Network Congestion and Falling Transaction/Miner Fee
Ethereum for quite some time has been suffering from the growing gas fee for transactions as well as miners. The problem ran havoc on the network due to the growing defi hype creating congestion leading to skyrocketing mining and transaction fees. However, the fees started to come down by the end of September and since then the cost has been significantly lower.
The rise in transaction and miner fees can often lead to low on-chain activities and make the network unusable in certain cases. So, it is quite a relief that the Ethereum network has managed to bring it under control.
ETH/BTC Trading Pair Reaches Key Support Level In Years
Bitcoin is the king coin that has been known to dominate the price rally in most cases and other altcoins follow it including ETH and the current rally is believed to be inspired by Bitcoin’s price trigger. Another very bullish factor in favor of ETH is the fact the ETH/BTC pair has hit a major support area of 0.029 after ages.
Some other key on-chain metrics for ETH which looks bullish at the moment has been listed below,
ETH 2.0 Announcement
ETH 2.0 is being deemed as the most significant upgrade for the Ethereum network as it would include the transition of Ethereum from the current Proof-of-work-based mining consensus towards a proof-of-stake-based mining consensus. Vitalik Buterin, the co-founder of Ethereum has suggested that the new network would be heavily focused on scaling and expand the transaction processing capacity of the network by a significant margin.
The new network also brings staking services to the mainent where users can lock 32 ETH on the network and expect return rates as high as 15%. Many analysts believe that the new staking service would weaken the sell-side of ETH as more traders would prefer staking over selling leading to scarcity in ETH supply.
The announcement of the launch of ETH 2.0 could play in favor of ETH’s price and build its bullish momentum further. The launch date of the ETH 2.0 network has been preponed to December 1st and it would require a total of 16,384 deposits of 32 ETH each totaling 524,288 ETH valued at approx 200 million. Buterin has already sent out 3,200 ETH worth over $1.4 million to an ETH 2.0 address and it is expected that the network would reach the desired number of transactions by the launch date.
The key on-chain metrics along with the announcement of the ETH 2.0 network launch date, Ethereum is as poised as Bitcoin to more past its all-time-high price of 2017. If Bitcoin manages to continue to solidify its gains, there is little no resistance for the king coin on its way to an ATH, and ETH would benefit not just from the on-chain metrics but also the price rally of the king coin.