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Ethereum Price Hesitates But A Bull-Run To $2,000 Seems Likely

Ethereum price is slowly moving up toward the $2,000 resistance against the US dollar. ETH is in a better positive for a decent upward move than Bitcoin.

  • Ethereum is still attempting to move toward the $2,000 level.
  • The price is trading above $1,850 and the 100-hourly Simple Moving Average.
  • There is a connecting bullish trend line forming with support near $1,880 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue to move higher above the $1,920 and $1,950 levels.

Ethereum Price Remains Supported

Ethereum formed a support base and slowly moved higher above the $1,850 resistance zone. ETH even broke the $1,880 level and spiked toward the $1,920 resistance, unlike Bitcoin.

The price traded as high as $1,915 and is currently consolidating gains. There was a minor downside correction below the $1,900 level. The price dipped below the 50% Fib retracement level of the upward move from the $1,858 swing low to the $1,915 high.

However, the bulls are protecting more downsides below $1,880. They are protecting the 61.8% Fib retracement level of the upward move from the $1,858 swing low to the $1,915 high.

Ethereum is now trading above $1,880 and the 100-hourly Simple Moving Average. There is also a connecting bullish trend line forming with support near $1,880 on the hourly chart of ETH/USD.

Ethereum Price

Source: ETHUSD on TradingView.com

On the upside, the price is facing resistance near the $1,900 level. The first major resistance sits at $1,920. If ETH surpasses the $1,920 resistance, it could gain bullish momentum and even clear $1,950. In the stated case, the price could drift toward the $2,000 barrier. The next key resistance is near $2,050, above which the price could accelerate higher toward the $2,120 level.

Are Dips Supported in ETH?

If Ethereum fails to clear the $1,920 resistance, it could start a downside correction. Initial support on the downside is near the $1,880 level or the trend line.

The next key support is $1,860 or the 100 hourly SMA. The main support sits at $1,850. A downside break below the $1,850 support might spark bearish moves. In the stated case, Ether could drop toward the $1,750 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $1,850

Major Resistance Level – $1,920

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Ethereum Layer-2 Booming: Will Gas Fees Drop Even In A Bull Market?

The adoption of Ethereum layer-2s is on the rise if Token Terminal data shared on November 6 is anything to go by. According to statistics from the blockchain analytics platform shared by Erik Smith, the Chief Investment Officer (CIO) of 401 Financial, the average active addresses over the past three months has exceeded 10 million, a nearly 2X expansion from early 2023.

Related Reading: Can The ADA Price Climb Above $20 In The Bull Market? Analyst Provides Answers

Ethereum Layer-2s Finding More Adoption

Looking at the chart, Polygon, an Ethereum sidechain, remains the most popular. At the same time, Arbitrum and OP Mainnet, which are common layer-2s adopting the roll-up technology, are actively being used.

Even so, OP Mainnet’s share is gradually dropping. Base, a layer-2 backed by Coinbase, and StarkNet are also finding adoption, expanding their share over the past three months.

Popular Ethereum layer-2s| Source: Token Terminal via Erik Smith on X

In crypto, active addresses refer to the number of unique wallet addresses (sending and receiving) that have interacted with the blockchain, in this case, Ethereum, over a given period.

An uptick or contraction in the number of active addresses can be used to measure sentiment and the level of uptake. In bear markets, active addresses tend to drop, only rising when bulls flow in, pointing to a possible scramble for arising opportunities.

Ethereum price trends upwards on daily chart| Source: ETHUSDT on Binance, TradingView

The recent uptrend coincides with the rapid expansion of leading crypto prices. Ethereum (ETH) prices are inching closer to the $1,870 resistance level, with a breakout above this line a potential trigger for a leg up that might see the coin retest $2,100 and even register new 2023 highs.

Usually, rising crypto prices tend to revive demand as the number of active addresses and, in some instances, the total value locked (TVL) in decentralized finance (DeFi), and more.

What Will Happen To Gas Fees?

Ethereum is the world’s most active smart contract platform, stretching its dominance mainly because of its first-mover advantage. The blockchain anchors more DeFi, non-fungible tokens (NFTs), and gaming activity. Deploying protocols, depending on their objectives, can either directly launch on the mainnet or layer-2s. 

The mainnet is directly secured by validators, while layer-2 solutions depend on the mainnet for security but often re-route transactions off-chain. In this arrangement, more transactions can be processed cheaply and efficiently, relieving the mainnet.

Though the Ethereum base layer is secure, its peak transaction throughput remains relatively lower at around 15 TPS. This means during peak demand, gas fees tend to be higher, impacting user demand.

Still, Ethereum gas fees remain at a multi-year low at around 23 Gwei, according to trackers, as seen on the chart below. This is down from 240 Gwei recorded in February 2021 when crypto assets rapidly rose.

Ethereum gas fee trend| Source: YCharts

For now, whether gas fees will increase as the market recovers is yet to be seen. What’s evident is that as users opt for layer-2s, the mainnet will likely be relieved, keeping gas fee fluctuation low.

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Crypto Forecast: Analyst Predicts ‘Santa Claus Squeeze’ May Deliver Year-End Gains

Markus Thielen, the Head of Crypto Research and Strategy at Matrixport, has hinted at a potential pre-Christmas rally with Bitcoin leading the charge.

This anticipation comes amid a backdrop of macroeconomic shifts that could set the stage for a significant surge in crypto prices, which Thielen describes as the “Santa Claus squeeze.”

Thielen’s analysis is rooted in recent market movements where some altcoins began to outperform Bitcoin, suggesting a momentum build-up that could translate into substantial gains.

Macroeconomic Indicators Fueling Crypto Optimism

This concept of a “Santa Claus squeeze” in the crypto market, a term coined to describe the seasonal rally often seen in equity markets, is not new. Thielen, in his Deribit Insights report, noted that Bitcoin has historically seen an average rally of 23% during the festive months of November and December.

This trend, coupled with last week’s performance where alternative cryptocurrencies gained an edge over Bitcoin, lends credibility to the forecast of a year-end rally, according to the Head of Crypto Research and Strategy at Matrixport.

Notably, the potential for a “Santa Claus squeeze” is underpinned by several macroeconomic indicators that Thielen has identified. Thielen points to a trio of events that collectively signal an interest rate peak, setting a conducive stage for risk assets like cryptocurrencies.

The US Treasury’s pivot towards “slowing the pace of issuing longer-dated debt” is the first sign Thielen identified,  implying expectations for a decline in interest rates, which historically benefit growth assets such as tech stocks and, by extension, digital currencies.

Adding to the mix is Federal Reserve Chair Jerome Powell’s “dovish” tone at the post-FOMC meeting press conference. His statements have been interpreted as a potential halt in rate hikes, with the possibility of cuts in 2024, bringing a dose of positiveness into the markets.

For context, during the conference, Fed Chair Jerome Powell discussed the balanced nature of inflation risks, referencing the term “symmetric” twice, which suggested a tone of accomplishment in the Federal Reserve’s efforts to reduce inflation. Additionally, Powell expressed his view that a recession is not on the horizon.

Furthermore, a less-than-stellar US nonfarm payroll reported last Friday suggests a “weakening labor market,” according to Thielen, reducing the chances of aggressive rate hikes in the future.

Bitcoin And Ethereum: A Potential Rally In Sight?

Drawing parallels with the past, Thielen recalled Bitcoin’s response at the end of the last Fed rate hike cycle in January 2019, which saw the cryptocurrency’s price rally by approximately 400%.

While Thielen tempers expectations for a repeat of such dramatic gains, the Head of Crypto Research and Strategy at Matrixport anticipates that Bitcoin and some other altcoins the analyst calls “higher beta crypto assets” could see considerable growth in the coming years.

The Head of Crypto Research and Strategy at Matrixport backed this bullish outlook further by the potential approval of a BlackRock spot Bitcoin ETF, which could act as a catalyst for a more widespread crypto rally.

Thielen’s observations extend beyond Bitcoin in another report. He notes the Ethereum ecosystem’s nascent signs of recovery, evidenced by increasing revenues and ETH’s resilience in holding the crucial support level of $1,550.

The analyst also noted the outshining of Ethereum and other altcoins over Bitcoin, a shift reflected in their growing market dominance and trading volumes. The perpetual futures funding rate for both Bitcoin and Ethereum is also on the rise, mirroring a more confident stance among traders.

So far, Bitcoin is only up 1.3% in the past week and 0.3% in the past day, while Ethereum has recorded a higher gain of 5% in the past 7 days and 1% over the past 24 hours. BTC currently trades at $34,987 and ETH  at $1,897 at the time of writing.

Bitcoin (BTC) price chart on TradingView amid crypto market news

Featured image from Unsplash, Chart from TradingView

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Conflux Protocol Shuts Down This Key Feature After 2 Years

After over two years of operation and maintenance by the Conflux Foundation, ShuttleFlow, a multi-asset bridge built on Conflux, is set to shut down. 

Per the announcement, the platform was pivotal in driving progress within the decentralized finance (DeFi) arena, enabling “seamless” asset transfers across various chains. 

Conflux Foundation Passes The Torch

ShuttleFlow emerged as one of the advanced multi-chain asset bridges in the DeFi space. Its architecture facilitated interoperability between different blockchains, opening up new user possibilities. 

Notably, ShuttleFlow enabled “effortless swaps” between external blockchains such as Ethereum (ETH) and Binance (BNB), utilizing Conflux as the transit chain. With the decision to shut down ShuttleFlow, the Conflux Foundation has entrusted cryptocurrency hub company Zero Gravity with the responsibility of maintaining and further developing the technology stack.

According to Monday’s announcement, Zero Gravity will continue to enhance the Bridge’s capabilities to ensure a “seamless and secure” experience for users within the expanding multi-chain ecosystem.

Furthermore, the Conflux Foundation assures users that their funds are secure throughout the transition. All user funds will be migrated from ShuttleFlow to Zero Gravity, safeguarding their assets. 

Users who have previously bridged assets through ShuttleFlow and successfully claimed them on the destination chain will not be required to undertake any additional actions for the migration.

ShuttleFlow will continue to assist users in claiming assets on the destination chain even after the bridging service is shut down. Users can locate their unclaimed assets on the ShuttleFlow history page.

ShuttleFlow Service Ends

The ShuttleFlow website and decentralized app (dApp) will continue to operate with limited functionality until January 6, 2024. However, the bridging service through ShuttleFlow’s dApp will cease on November 6, 2023. Once ShuttleFlow fully shuts down, users can bridge their assets through Zero Gravity’s official dApp.

The Conflux Foundation firmly believes that the decentralization and accumulation of infrastructure partners are crucial for the growth of its ecosystem. With Zero Gravity taking the reins, ShuttleFlow’s vision of enabling chain-agnostic asset flows to and from the Conflux Network will persist.

Conflux

In light of these developments, the protocol’s token, CFX, currently ranked among the top 80 largest cryptocurrencies in the ecosystem, has experienced a retracement of over 2.9% in the past 24 hours, trading at $0,1619. 

Nevertheless, the token retains significant gains of 277% in the year-to-date period, demonstrating its remarkable growth over the past year.

Featured image from Shutterstock, chart from TradingView.com 

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Did Ethereum Founder Vitalik Buterin Short Ethereum? Unraveling A 70,000 ETH Sale

A video has surfaced on social media where Ethereum founder Vitalik Buterin revealed he sold 70,000 ETH tokens during its price all-time high. 

Buterin Acknowledges Shorting Ethereum

Crypto community member, MetaMan X, published a video post on X (formerly Twitter), disclosing a conversation where Ethereum Founder, Vitalik Buterin admitted that he had sold about 70,000 ETH tokens, essentially shorting the cryptocurrency during a major all-time high. 

In the podcast with American hedge fund director, Eric Ross Weinstein, Buterin spoke on the price of Ethereum and Bitcoin in 2017. During Ethereum’s previous all-time high in 2017, when the price of ETH rose as high as $1,600 and Bitcoin’s price was up $20,000, Buterin voiced doubts about whether the significant price surge truly aligned with the crypto market’s modest achievements over the years. 

“The crypto space has reached half a trillion dollars, does it deserve it?” Buterin stated. 

When asked if he had shorted Ethereum during the all-time high, Buterin stated that he had convinced the Ethereum Foundation to sell a considerable amount of ETH tokens, and the result of the decision made a huge impact on the cryptocurrency later.

“I did get the Ethereum Foundation to sell 70,000 ETH like basically at the top, and that’s doubled our runway now, so it was one good decision that had a lot of impact,” Buterin said. 

Ethereum price chart from Tradingview.com

Community Worries Over Buterin’s ETH Sell-Offs

Many crypto community members have raised concerns about the multiple ETH transactions said to be conducted by Ethereum’s founder. Recently, Buterin was spotted making a transfer of 100 ETH, worth about $181,000 to Coinbase, one of the world’s largest crypto exchanges. 

The motive behind the transaction has sparked curiosity among Ethereum investors and the crypto community. Earlier in August, Buterin was also reported moving 600 ETH worth $1 million to Coinbase. 

However, the Ethereum Founder had publicly clarified in October that he had not sold any ETH tokens for personal gain since 2018. He also stated that most ETH transactions were not him selling, but rather the recipients of his charitable donations selling the ETH tokens. 

The founder has also been caught in controversy over the weekend when Ethereum whistleblower Steven Nerayoff alleged that Buterin was involved in some sort of fraud involving ETH.

Nerayoff says Ethereum is linked to corrupt SEC officials to carry out this fraud which he says is on a larger scale than what happened with FTX. For reference, FTX founder Sam Bankman-Fried has been found guilty of fraud charges after the exchange filed for bankruptcy in 2022 with a $9 billion hold in its balance sheet.

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Bitcoin And Ethereum Rally Not Over: Crypto Capital Inflows Reach One-Year High

Many had speculated that the rally in the crypto market was going to wane following the Spot Bitcoin ETF rumors fading out. That hasn’t been the case, though, and a recent revelation from a prominent crypto analyst suggests that the two largest cryptocurrencies by market cap, Bitcoin and Ethereum, could continue to see an upward trend. 

New Liquidity Coming Into The Market Could Boost Bitcoin, Ethereum

In a post shared on his X (formerly Twitter) platform, Crypto analyst Ali Martinez revealed that the crypto market has seen close to $10.97 billion in positive capital inflows, which represents the highest level this year. According to him, this inflow of capital into crypto could potentially mean that investors are heavily bullish on these assets. 

Crypto liquidity

Meanwhile, there is also further evidence that the market, most especially Bitcoin, could see an influx of new money in the coming days, as Martinez mentioned in a subsequent post that over 700,000 new BTC addresses were created on November 4. The analyst believes that such a happening is an important milestone as Bitcoin’s network growth is one of the best price predictors.

Ethereum Bitcoin

It is uncertain what could be behind these inflows and the revived interest in the crypto market. However, some believe that it could be institutional investors who are taking positions ahead of a possible approval of the pending Spot Bitcoin ETF applications by the Securities and Exchange Commission. 

Others believe that the Bitcoin Halving could be contributing to the resurgence in Bitcoin’s price and the crypto market by extension. Historically, Bitcoin has seen significant gains in the period leading up to the Halving event. The next Halving is expected to happen in April 2024. 

Whatever the reason, there is no doubt the influx of new money into the ecosystem is a positive development. A particular crypto analyst had once noted that many altcoins were tepid due to the lack of liquidity in the market and that they could pick up once there is renewed interest in the market.

Institutional Interest Coming From Overseas

According to a Bloomberg report, Hong Kong’s financial regulator, the Securities and Financial Commission (SFC), is considering allowing the launch of exchange-traded funds (ETFs) that allow investors to invest directly in the cryptocurrency itself (Spot trading). 

This development comes amid the US SEC’s reluctance to approve the pending Spot Bitcoin ETF applications, which would allow US investors to have direct exposure to the flagship cryptocurrency, Bitcoin. 

This further highlights the stark contrast between the treatment that the crypto industry has received overseas and in the United States. The positive approach taken by regulators overseas is, however, commendable as the crypto industry continues to see interest from such regions. 

Bitcoin price chart from Tradingview.com (Ethereum crypto capital inflows)

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Ethereum Price Grinds Higher and Liftoff Toward $2,000 Seems Imminent

Ethereum price is moving higher above $1,850 against the US dollar. ETH is outperforming Bitcoin and might climb further higher toward the $2,000 resistance.

  • Ethereum is gaining pace for a move toward the $2,000 level.
  • The price is trading above $1,850 and the 100-hourly Simple Moving Average.
  • There is a key bullish trend line forming with support near $1,870 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue to move higher above the $1,920 and $1,950 levels.

Ethereum Price Outperforms Bitcoin

Ethereum remained in a positive zone above the $1,780 support zone. ETH started a fresh increase and was able to clear the $1,850 resistance, outperforming Bitcoin.

The price even spiked above the $1,900 level. It traded to a new multi-week high at $1,912 and the price is now consolidating gains. It is now trading near the 23.6% Fib retracement level of the upward move from the $1,781 swing low to the $1,912 high.

Ethereum is now trading above $1,850 and the 100-hourly Simple Moving Average. There is also a key bullish trend line forming with support near $1,870 on the hourly chart of ETH/USD.

Ethereum Price

Source: ETHUSD on TradingView.com

On the upside, the price is facing resistance near the $1,900 level. The first major resistance sits at $1,920. If ETH surpasses the $1,920 resistance, it could rise toward the $1,950 barrier. Any more gains might open the doors for a test of the $2,000 handle. The next key resistance is near $2,050, above which the price could accelerate higher toward the $2,120 level.

Are Dips Limited in ETH?

If Ethereum fails to clear the $1,920 resistance, it could start a downside correction. Initial support on the downside is near the $1,870 level or the trend line.

The next key support is $1,850 or the 100 hourly SMA. It is also near the 50% Fib retracement level of the upward move from the $1,781 swing low to the $1,912 high. A downside break below the $1,850 support might spark a bearish wave. In the stated case, Ether could drop toward the $1,780 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $1,850

Major Resistance Level – $1,920

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This ‘Smart’ Whale Buys ETH Again – Could There Be An Incoming Price Surge?

In the last week, Ethereum (ETH) has attracted many investors’ attention as it gradually approaches the $1900 price region. Similar to many assets riding on the Bitcoin-fueled market rally, ETH, also known as Ether, is up by 5.85% in the last seven days, bringing its total price increase in the last four weeks to 15.17%.

Interestingly, a recent whale movement has now added more speculation around ETH, prompting suggestions that the largest altcoin may soon experience a price surge.

‘Smart’ Whale Purchases $15.94 Million Ether – What Could They Know?

In a Sunday post on X, blockchain analytics platform Lookonchain shared that an ETH whale with the wallet address “0xb15” had just purchased 8,698 ETH, valued at $15.94 million, from the Binance exchange, depositing 31.8 million USDT in the process.

This transaction has drawn much attention due to the past antecedents of this Ether investor. Popularly known as a “smart” whale, Lookonchain notes that “0xb15” has conducted 8 ETH transactions since February 12, recording a win rate of 87.5% and an aggregate profit of $13 million. 

In particular, this smart whale is known for buying low and selling high. Most recently, they deposited 24,495 ETH ($45 million) on Binance on November 2, shortly after purchasing 24,548 ETH, valued at $39.8 million, leading to a profit margin of approximately $5.47 million.

Following the purchase made by “0xb15” on Sunday, many traders are likely on high alert as it indicates the whale is anticipating a continuous rise in Ether’s price over the next few days. 

Looking at Ether’s daily chart, the altcoin is poised to break into the $1900 price zone if this buying pressure continues. However, investors should note the token’s Relative Strength Index (RSI) is now at 71.43, indicating it is now in the overbought zone and may experience a trend reversal. 

ETH Market Records Largest CEXs Weekly Outflow Since August

In other news, centralized exchanges (CEXs) just recorded an outflow of $210 million worth of Ether in the last seven days, according to data from IntotheBlock. This marks the altcoin’s largest weekly outflow off CEXs since August.

This data only reflects the strong bullish sentiment surrounding the ETH market, as a reduction in the token’s supply on exchanges reflects an increase in purchasing activity by investors. 

At the time of writing, Ether is trading at $1890.95, with a 2.61% gain in the last day. However, the token’s daily trading volume is down by 11.485 and valued at $6.02 billion. With a market cap of $227.4 billion, Ethereum remains the second-largest cryptocurrency in the world. 

ETH

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Bitcoin And Ethereum: Crypto Pundit Says Expect A Repeat Of Massive 2019 Rally

Partner at the Venture Capital firm Placeholder Capital and prominent figure in the crypto community, Chris Burniske, has given an instance where assets like Bitcoin and Ethereum could see a repeat of what happened in mid-2019.

New Highs Before A “Final Wipeout”

In a post shared on his X (formerly Twitter) platform, Burniske mentioned that a repeat of mid-2019 could happen if the top two cryptocurrencies, Bitcoin and Ethereum, were to “rip” from their current levels. If that happens, the crypto founder believes that the broader crypto market could follow suit.

As to how these crypto tokens could go, he noted that they could rise enough to make people believe that they could hit new all-time highs soon, but that may not be the case as these investors could endure a “final wipeout” soon after (possibly in the first quarter of next year) with these tokens steady declining to higher lows. 

To drive home his point, Burniske suggested that Bitcoin and Ethereum’s current price action shared similarities to the period between December 2019 and January 2019 before the “painful descent into March 2020 lows.” According to him, although that period was the COVID era, “everything is also the same about the actors on the stage.”

Burniske seemed to be certain about his assertions. In a subsequent post, he warned investors that the rollercoaster “could get extreme” in relation to what he had said earlier and urged them to have their seatbelts on. 

Ethereum price chart from Tradingview.com (Bitcoin crypto pundit)

Market Cycle And Macro Factors Affecting Bitcoin And Ethereum

Many didn’t seem to react well to Burniske’s projections, considering that it could mean that the crypto market and everyone in it could be in more pain, even if a massive rally (as the crypto founder predicts) is likely to happen before that. 

A particular X user, however, seemed to agree with his position as he stated that Burniske’s prediction makes so much sense as that is how the “cycle psychology” works, just that this time, it happens to line up “perfectly” with some highly likely macro scenarios. Burniske responded to the post as he agreed that those were the points he was trying to drive home. 

One of these macro scenarios, which was alluded to, could be the rising inflation and how the Federal Reserve and other authorities globally are increasing interest rates to battle the economic downturn. Bloomberg analyst Mike McGlone had once mentioned how Bitcoin could crash to $10,000, with inflation being one of the factors that could lead to the decline. 

Another crypto analyst, Nicholas Merten, had also noted that Bitcoin could decline further if the Feds do not do enough to curb the rising inflation. 

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ETH Sent To Exchanges Climbs Above 500,000, Is Ethereum At $2,000 Still Possible?

A massive amount of ETH has made its way to centralized exchanges, increasing the Ethereum balances of these exchanges. Given the implications of exchange inflows, it could be a barrier to the cryptocurrency when it comes to claiming the $2,000 resistance.

Investors Send 13,000 ETH To Exchanges

Data from IntoTheBlock shows a massive amount of ETH headed toward exchanges as the price rose. The total inflow volume as of October 31 when the price first cleared the $1,800 resistance was at 480,570. However, by the start of November, this number had blown up massively.

November 1 saw the total ETH flowing into exchanges reaching 774,890, and by this time, the bulls had established their dominance above the $1,800 level. With outflows coming out at just around 630,000 ETH, the netflows come out to approximately 130,000 ETH flowing into exchanges on November 1. This showed a willingness among investors to start taking profit from their holdings.

Ethereum ETH

As the data tracker shows, the majority of Ethereum investors had moved back into profit after crossing $1,800. Even following the retracement, the total percentage of ETH investors in profit is sitting at 55.40% and it is no surprise that some of these investors would want to secure profit.

By November 2, though, there has been a relaxation from investors when it comes to inflows. Data shows that on Thursday, the ETH inflow figures fell to 637,070, although this is still much higher than the previous week’s figures. The exchange net flow is now down to 31,040 ETH as of Thursday.

Ethereum price chart from Tradingview.com

Ethereum Large Holders Swing Into Action

Ethereum has also seen a spike in the number of large transactions being carried out on the network as well as the transaction volume of these large holders. The total number of large transactions sat at 1,900 on October 29. But by November 2, the figure ballooned to 4,320, an over 100% increase in just four days.

The transaction volumes of these whales also saw a rise in an almost similar manner compared to the number of large transactions. Large transaction volumes were at 741,440 ETH on October 29. But on November 2, the volume reached 2.21 million ETH. In dollar figures, large transaction volumes went from $1.33 billion to $4.04 billion.

Looking at the bullish and bearish transactions (i.e those who are buying versus those who are selling), there isn’t a large difference bulls still continue to lead in the asset. The 7-day total for bulls came out to a total of 98 bulls compared to 87 bears. But the gap is closing further on a daily basis where IntoTheBlock shows 14 bulls and 12 bears.

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ProShares Goes Short On Ethereum With New ETF Launch

ProShares, one of the biggest issuers of exchange-traded funds (ETFs), has added another Ethereum-related ETF to its growing offerings following the launch of the “world’s first Short Ether-Linked ETF” on November 2. 

ProShares Short Ethereum Strategy ETF

In its announcement, the asset manager mentioned that the ProShares Short Ether Strategy ETF trading under the ticker ‘SETH’ will provide an avenue for investors to profit from declines in the price of the second largest cryptocurrency, Ether. 

With the launch of this Ethereum investment vehicle, the company believes that its clients have an opportunity to “profit both on days when Ether increases and when it drops.” It is worth mentioning that the asset manager was one of those who recently launched their Ethereum futures ETF, offering investors the chance to bet on the prices of the crypto token.

The Asset manager mentioned that the Short Ether Strategy ETF will be listed on the New York Stock Exchange and will deliver the opposite of the daily performance of the S&P CME Ether Futures Index. As to exposure, SETH, like other ProShares crypto-related ETFs, will gain exposure through Ether futures contracts. 

Ethereum price chart from Tradingview.com

How ProShares Has Blazed The Trail So Far

ProShares is no newcomer when it comes to offering crypto-related ETFs and can even be said to be a trailblazer in that regard. The firm was the first to launch a Bitcoin futures ETF and the first US Bitcoin-linked ETF (ProShares Bitcoin Strategy ETF) back in 2021. 

It also launched the first US short Bitcoin-Linked ETF (ProShares Short Bitcoin Strategy ETF) in June 2022. Similar to the SETH, the Short Bitcoin Strategy provides investors an avenue to make profits off declines in the price of the flagship cryptocurrency, Bitcoin. 

ProShares has also enjoyed immense success in its ventures thanks in a big way to the first-mover advantage by being the first to launch funds. The ProShares Bitcoin Strategy ETF (BITO) and the ProShares Short Bitcoin Strategy ETF (BITI) are reported to be the two largest Bitcoin ETFs with $1.1 billion and $80 million assets under management (AuM) respectively. 

Other crypto-linked ETFs offered by the firm include ProShares Ether Strategy ETF (EETH), which is said to be “the first US ETF that targets the performance of Ether,” and the Bitcoin & Ether Market Cap Weight Strategy ETF and Bitcoin & Ether Equal Weight Strategy ETF which tracks both the performance of Bitcoin and Ether. 

Considering how bullish the firm seems to be on crypto-related ETFs, it is surprising that it isn’t part of the asset managers that have filed to offer a Spot Bitcoin ETF. 

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Ethereum Price Breaking This Confluence Resistance Could Spark Fresh Surge

Ethereum price corrected lower from the $1,875 zone against the US dollar. ETH retested the $1,780 zone and might soon attempt a fresh surge.

  • Ethereum holds the key support at $1,780 and $1,750.
  • The price is trading below $1,820 and the 100-hourly Simple Moving Average.
  • There was a break above a steep bearish trend line with resistance near $1,795 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a fresh increase toward the $1,850 and $1,875 resistance levels.

Ethereum Price Revisits Uptrend Support

Ethereum attempted a fresh increase above the $1,850 resistance but upsides were limited, like Bitcoin. ETH traded as high as $1,874 and recently started a downside correction.

There was a move below the $1,850 and $1,820 levels. The price even spiked below the $1,800 level and the 100-hourly Simple Moving Average. It retested the $1,780 support zone. A low is formed near $1,777 and the price is now attempting another increase.

There was a break above a steep bearish trend line with resistance near $1,795 on the hourly chart of ETH/USD. Ethereum is now trading near the 23.6% Fib retracement level of the recent drop from the $1,874 swing high to the $1,777 low.

On the upside, the price is facing resistance near the $1,810 level and the 100-hourly Simple Moving Average. The first major resistance sits at $1,825 or the 50% Fib retracement level of the recent drop from the $1,874 swing high to the $1,777 low.

Ethereum Price

Source: ETHUSD on TradingView.com

If ETH surpasses the $1,825 resistance, it could again start a steady increase and test $1,875. The next key resistance is near $1,920, above which the price could accelerate higher toward the $2,0000 level. Any more gains might call for a move toward the $2,050 level.

More Losses in ETH?

If Ethereum fails to clear the $1,825 resistance, it could continue to move down. Initial support on the downside is near the $1,780 level or the recent low.

The next key support is $1,750. A downside break below the $1,750 support might spark a bearish wave. In the stated case, Ether could drop toward the $1,650 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $1,780

Major Resistance Level – $1,825

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Polygon’s NFT Sales Skyrocket By 131% To $20 Million In Q3 2023

Polygon (MATIC), a  Layer 2 (L2) blockchain network, experienced remarkable growth in the third quarter of 2023. According to a report by Messari, the platform witnessed a significant increase in non-fungible token (NFT) sales, successful network upgrades, and the activation of a new token. 

Polygon NFT Sales Skyrocket

Per the report, in Q3 2023, Polygon witnessed a staggering 131% quarter-on-quarter increase in weekly NFT sales volume, reaching an impressive $20 million. This growth was primarily attributed to the success of DraftKings’ Reignmaker NFT collection, which became the top collection on the network. 

Polygon

The collection featured officially licensed cards from renowned sports organizations like the National Football League Players Association (NFLPA), Professional Golfers’ Association of America (PGA TOUR), and Ultimate Fighting Championship (UFC). Furthermore, through Q3, Polygon achieved significant milestones in terms of technological advancements. 

Moreover, Polygon activated the POL token on its mainnet during Q3 2023. POL serves as an upgrade to the existing MATIC token and offers holders the opportunity to contribute to network security across various chains within the Polygon ecosystem through a native re-staking protocol. 

The token features an inflationary model with an annual issuance rate that is subject to community governance, which, according to the report, enhances the overall security and decentralization of the platform.

Daily Active Addresses Surge Fueled By DeFi Dominance

During Q3, Polygon experienced a 1.4% quarter-on-quarter growth in daily active addresses, reaching an impressive 364,000. The decentralized finance (DeFi) sector accounted for the majority of the active addresses on the network, showcasing the platform’s strength and popularity within the decentralized finance space.

Polygon

What’s more, Polygon Labs unveiled Polygon 2.0, a comprehensive upgrade roadmap aiming to unify all Polygon protocols and blockchains using ZK technology. This initiative seeks to establish Polygon as the “Value Layer of the Internet” and introduces significant updates to protocol architecture, tokenomics, and governance. 

One of the key upgrades includes transitioning the network to a zkEVM Validium network, ensuring enhanced security while sharing the same level of robustness as Ethereum (ETH).

Furthermore, according to Token Terminal data, Polygon has shown positive momentum in price performance, network fees, and circulating market cap.

Polygon

The network’s native token, MATIC, has experienced an increase of 3.95% over the past 24 hours, trading at $0.6556, reflecting positive sentiment among investors. 

Over the past 30 days, the coin has experienced a notable increase of 13.01%, signaling a potential recovery from previous market downturns.

However, the six-month data shows a decrease of 34.97%, indicating the impact of market volatility on the long-term value of the token.

Polygon’s circulating market cap currently stands at $6.00 billion, exhibiting a 15.36% increase. However, the fully diluted market cap of $6.49 billion, which considers the total supply of tokens, has grown by 12.79%. 

The network’s fees over the past 30 days amounted to $1.21 million, representing a slight decline of 8.57%. However, on an annualized basis, the fees reached $14.68 million, indicating a downward trend of 20.24%. 

Featured image from Shutterstock, chart from TradingView.com 

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Founder Thinks The Ethereum Chart Is “Gorgeous”: Is It True?

Raoul Pal, the CEO and founder of Real Vision, thinks the Ethereum chart is “gorgeous” and expects the coin to increase in the months ahead. Though it is unclear when the coin will break from the current consolidation and extend gains of the recent few weeks, the endorsement from the founder can be bullish for the coin.

ETH chart| Source: Raoul Pal on X

Ethereum Is Bullish, What’s Next?

Presently, ETH is changing hands at around $1,800 but remains below the psychological $2,000 level and July 2023 highs of approximately $2,100. The failure of ETH to break above immediate resistance lines can be a concern, considering the exemplary performance of Bitcoin (BTC) in the past few weeks.

Ethereum price trends to the upside on the daily chart| Source: ETHUSDT on Binance, TradingView

At press time, BTC is trading near 2023 highs after easing past July 2023 highs in late October 2023. The surge of Bitcoin prices shifted sentiment, forcing capital back into crypto, which had been relatively restive, reeling from the brutal effects of last year’s crypto winter, which spilled to 2023.

Looking at the performance in the daily chart, ETH is up about 20% from October 2023 lows. Technically, the path of least resistance appears northwards, syncing with the general crypto trend whose trajectory seems reliant on Bitcoin. 

As it is, the immediate resistance is around the $2,000 and $2,100 zone. If bulls build on the current momentum as Pal expects, breaking from the consolidation, ETH could surge to March 2022 highs of around $3,500. However, the leg up from spot rates largely depends on the strength of the breakout, a metric gauged by the trading volume. 

A high volume breakout, similar to the one recorded in the BTCUSDT when it broke above $32,000, may easily anchor optimistic buyers angling for a near 100% rally in the coming sessions.

Ethereum Futures ETFs Are Live, But SEC Is Mum On ETH’s Status

Though Pal is bullish, the founder didn’t specify the exact trigger that may lift the second most valuable coin to new levels, justifying why the ETHUSDT chart at the spot level is “gorgeous.” Still, the community is overly bullish because the United States Securities and Exchange Commission (SEC) recently approved the first Ethereum Futures Exchange-Traded Fund (ETF).

These products provide a new and regulated way for investors to gain exposure to ETH. Over time, this may attract institutional investors, which may drive prices higher. 

Though the SEC has yet to publicly declare ETH is a commodity like Bitcoin, their approval of Ethereum Futures ETFs as the community awaits the eventual authorization of the first spot Bitcoin ETF suggests that the regulator could be comfortable with ETH.

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Ethereum Yet To Shake Off 2022 Bear Hangover: Glassnode

Data from Glassnode shows Ethereum is still experiencing negative momentum despite the year-to-date rise that the asset has observed.

Ethereum MVRV Ratio Has Recently Indicated Negative Momentum

According to the latest weekly report from Glassnode, the MVRV ratio has recently been below its 180-day moving average (MA). The “Market Value to Realized Value (MVRV) ratio” refers to an indicator that measures the ratio between the Ethereum market cap and realized cap.

The “realized cap” here is a capitalization model for ETH that assumes the true value of any coin in circulation is the price at which it was last moved on the blockchain. This is unlike the market cap, of course, which calculates the asset’s total value using the current spot price.

Since the price at which each coin was last moved on the network can be assumed to be the price it was bought, the realized cap can be looked at as a sum of the total capital that the investors have used to purchase ETH.

As the MVRV ratio compares the value that the holders are carrying right now (the market cap) against the amount that they have invested into the cryptocurrency, it can provide us with information about their profit/loss status.

Now, here is a chart that shows the trend in the Ethereum MVRV ratio, as well as its 180-day MA, over the last few years:

Ethereum MVRV Ratio

When the MVRV ratio is above the 1 mark, it means that the average investor is sitting on some profits right now, while it being below the level implies the dominance of loss in the market.

From the graph, it’s visible that the Ethereum MVRV ratio observed some rise as the rally started at the start of this year. During this period, the indicator remained above its 180-day MA.

“Periods, where the MVRV Ratio trades above this long-term mean, indicate investor profitability is increasingly meaningful, and is often a signal of a rising market,” explains Glassnode.

In the last few months, though, as the Ethereum price has found some struggle, the metric has gone under its 180-day MA. The analytics firm notes, “despite the positive market performance for ETH YTD, by this metric the market is still experiencing negative momentum.”

As is apparent from the chart, the Ethereum MVRV ratio has very recently just started to break above this mark, following the rally towards the $1,800 level. It’s still very early in the breakout, though, so it’s unclear if it will actually sustain there.

“It seems that the hangover from the 2022 bear is still being slowly worked through,” says the report. It’s not something new that ETH is going through a phase like this; as the graph highlights, the asset has also faced similar periods of uncertainty in the past.

ETH Price

At the time of writing, Ethereum is trading around $1,800, up 1% in the past week.

Ethereum Price Chart

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Ethereum Bulls Keeps Pushing, Why Rally Could Soon Reach $2,000

Ethereum price popped above the $1,850 resistance against the US dollar. ETH is showing positive signs and might soon climb toward the $2,000 resistance.

  • Ethereum is slowly moving higher above the $1,850 resistance zone.
  • The price is trading above $1,820 and the 100-hourly Simple Moving Average.
  • There was a break above a key declining channel with resistance near $1,818 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is signaling bullish signs and a possible move toward the $2,000 resistance.

Ethereum Price Aims Higher

Ethereum formed a base above the $1,780 level and recently started a steady increase, like Bitcoin. ETH gained pace for a move above the $1,820 resistance zone.

There was a break above a key declining channel with resistance near $1,818 on the hourly chart. It sparked bullish moves and pushed the price above the main hurdle at $1,850. The price traded to a new multi-week high at $1,875 and is currently consolidating gains.

Ethereum is now trading above $1,820 and the 100-hourly Simple Moving Average. It is also above the 23.6% Fib retracement level of the recent increase from the $1,784 swing low to the $1,875 high.

On the upside, the price is facing resistance near the $1,875 level. If ETH surpasses the $1,875 resistance, it could again start a steady increase and test $1,920. The next key resistance is near $1,950, above which the price could accelerate higher toward the $2,0000 level.

Ethereum Price

Source: ETHUSD on TradingView.com

Any more gains might call for a move toward the $2,050 level. In the stated case, the price could even climb toward the $2,120 level.

Are Dips Limited in ETH?

If Ethereum fails to clear the $1,875 resistance, it could start a downside correction. Initial support on the downside is near the $1,850 level.

The next key support is $1,820 or the 61.8% Fib retracement level of the recent increase from the $1,784 swing low to the $1,875 high. The main support is now forming near the $1,800 level and the 100-hourly Simple Moving Average. A downside break below the $1,800 support might spark a bearish wave. In the stated case, Ether could drop toward the $1,750 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $1,820

Major Resistance Level – $1,875

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Cardano: More ADA Delegators Staking, But Why Are Bears Dominant?

Citing Messari data, one user on X, @JaromirTesar, notes that despite the effects of the crypto bear market, which has adversely affected valuation and activity, there are more Cardano (ADA) holders willing to stake their assets, helping secure the network and earn staking rewards at the same time.  

More Delegators Staking ADA, Confidence Remains High

Sharing a screenshot on November 1, the user notes that roughly 250 ADA holders have opted to stake their coins daily for the past year. By the end of Q3 2023, there were 1.31 million delegators, up from 1.22 million recorded around the same time last year. This means that despite the harsh crypto market conditions, ADA holders seem to have been unfazed and choose to lock their coins instead of exiting for other coins like Bitcoin (BTC) or stablecoins, including USDT.

Cardano staking Overview| Source: @JaromirTesar on X

Cardano uses the proof-of-stake (PoS) consensus mechanism, which the team, Input Output Global (IOG), claims to be more scalable and efficient than other consensus systems, including Bitcoin’s proof-of-work (PoW). In Cardano, Stake Pool Operators (SPOs) are tasked with validating a block of ADA transactions where they receive rewards after every epoch. 

SPOs eradicate the need for miners. Since anyone with a Cardano wallet can participate in the consensus process, the platform is thought to be more decentralized. ADA holders who choose not to run SPOs can delegate their coins through their favorite validator and receive staking rewards.  

More Stakers Engaging, What Happens To Price Next?

As of November 1, there are 2,888 SPOs with stake, meaning they manage ADA from delegators. Meanwhile, there were 1.31 million unique delegators by the end of Q3 2023, an increase from the previous year.

SPOs on Cardano| Source: ADAstat

In total, 65.33% of all ADA is engaged, actively participating in consensus and helping keep the network decentralized. Even so, this is down from 71.57% recorded in Q3 2023. The active stake translates to 22.9 billion ADA, down from 25 billion in Q3 2023. According to trackers, there are 35.2 billion ADA in circulation.

Cardano price trends to the upside on the daily chart| Source: ETHUSDT on Binance, TradingView

Despite the confidence among ADA holders, prices are relatively subdued. The coin is still trending below July 2023 highs of around $0.37. Even so, prices have been on an uptrend, breaking above the $0.27 high of October.

A close above $0.40 could open up ADA for more gains towards 2023 highs of around $0.46. Conversely, any sell-off from spot rates may push the coin closer to 2023 lows of $0.24.

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Analyst Reveals Why Ethereum Is Underperforming Against Bitcoin

Ethereum has been notably underperforming Bitcoin through this latest rally. Here’s why this is so, according to a CryptoQuant analyst.

Ethereum Net Taker Volume Has Been Mostly Negative Recently

In a new post on X, CryptoQuant Netherlands community manager Maartunn has pointed out what the “net taker volume” for Ethereum is looking like.

The net taker volume here is an indicator that keeps track of the difference between the taker buy volume and taker sell volume on the Bitcoin futures market.

When the value of this metric is positive, it means that the taker buy volume is dominating the taker sell volume right now. Such a trend implies buying pressure may be strong in the market currently.

On the other hand, negative values could suggest the presence of a bearish sentiment among the investors, as selling pressure is higher than the buying pressure.

Now, here is a chart that shows the trend in the 30-day moving average (MA) Ethereum net taker volume over the past few years:

Ethereum Net Taker Volume

As displayed in the above graph, the Ethereum net taker volume has been mostly negative during the past few months, implying that sentiment around the asset has remained bearish.

Bitcoin, on the other hand, has enjoyed periods where the taker buy volume has surpassed the taker sell volume, as the chart shared by the analyst a few days back showed.

Bitcoin Net Taker Volume

Most notably, the net taker volume of Bitcoin is significantly positive right now, suggesting the strong buying pressure present in the market. Unsurprisingly, BTC’s sharp rally has come alongside these positive values of the metric.

Ethereum has no such buying pressure present at the moment. Maartunn believes this is why the ETH price has been performing considerably poorly against BTC recently.

Ethereum Has Still Not Touched The Highs Set Earlier In The Year

Ethereum’s underperformance against Bitcoin is easily visible in the asset’s year-to-date chart.

Ethereum Price Chart

At the same time as Bitcoin observed its rally off the back of the highly positive net taker volume, Ethereum also saw a surge of its own. This rise, though, has been nowhere near as sharp as that of the original cryptocurrency, as ETH is still just trading around $1,800, which is notably less than the top of around $2,100 that the asset set back in April.

Not only has Bitcoin surpassed the $31,000 top it set back in July, it has also done so in spectacular fashion, as it’s now trading above the $34,000 level, which is significantly higher.

If the net taker volume is anything to go by, the second largest cryptocurrency may continue to underperform versus the largest, so long as investor sentiment around it remains negative.