Welcome to the Ethereum Price Preview, an analysis of current and upcoming market events and how they might shape the price of ETH and the trajectory of the network.
Last week saw the impact of Bitcoin’s bull run on the ETH markets, as well as issues surrounding the ETH 2 launch. In this piece, we’ll take a look at the recent increase in ETH volume as well as the various factors that may impact price action in the coming days.
Analysts Eye $800 ETH Price Point
A major uptrend could be on the cards for ETH in the coming weeks, with favorable on-chain metrics and the upcoming ETH 2 genesis event creating all the right conditions for a bull run.
Popular crypto-twitter analyst Crypto Capo has been outlining the possibility for an $800 ETH price point since late September, providing support held in the mid-$300 range.
These levels have remained in place and ETH is now testing resistance at $450, potentially setting the stage for a major breakout. Ethereum futures volumes have increased since the start of the month with a growing number of traders speculating on the possibility of an ETH rally.
Fewer ETH addresses are in profit compared to BTC addresses, indicating that there is room for a rally to grow as holders are unprepared to sell at a loss.
Of course, the upcoming December 1 launch of ETH 2 is rapidly approaching and this is another major factor in ETH price. ETH pumped slightly following the launch of ETH 2’s deposit contract last week, and many expect a successful December 1 launch to have a positive impact on ETH price. Of course, a failed launch could have the reverse effect; however this would seem unlikely given the success of the many ETH 2 testnets.
Ethereum’s correlation with Bitcoin is now at 49%, the lowest level since 2018 as ETH struggles to break free from BTC dominance.
DeFi Inches Higher, But Struggles to Beat September Highs
The total value locked in the DeFi ecosystem has inched closer to a two-week high following a dip earlier this month, now standing at $12.23 billion.
Uniswap retains dominance over the space with a record $2.8 billion in TVL (although that figure has been as high as $3.2 billion according to uniswap.info)
The Binance DeFi index has crashed 60% since September with all eyes on Bitcoin’s recent price action following a turbulent US election.
Binance states that “7 of 13 DeFi tokens had negative correlations with Ethereum (ETH), despite Ethereum powering much of the DeFi ecosystem. DeFi’s negative correlation with BTC and ETH is no surprise as the DeFi bubble came to a crashing end in September.”
The report does go on to add that despite recent price corrections and uncertainty in the economic markets, DeFi continues to show strong fundamentals, indicating that the DeFi boom may not be finished yet.
The Ethereum Engineering Group are hosting the Turbo Geth meetup on November 10. Ex-Deutsche Bank software engineer and FinTech specialist Alexey Akhunov will lead discussion around the Turbo Geth client and its scaling solution for Ethereum nodes. “My main hope is that it brings other clients and other client developers to look at the broader design space for ethereum clients,” says Akhunov.