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Ethereum Price Preview October 26 – November 1

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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 a major increase in tokenized Bitcoin on Ethereum and bullish indicators for ETH price, even as ETH 2 progress seemed to slow. In this piece, we’ll take a look at the various factors that may be impacting Ethereum price for the week ahead.

Ethereum Is Now the Dominant Settlement Layer in Crypto

Source: Messari

Market sentiment is bullish on ETH due to a number of factors. Ethereum’s 30-day rolling daily average transaction volume exceeded $7 billion in the last month, more than twice the volume of Bitcoin at just $3 billion. At this pace, Ethereum looks likely to settle $1 trillion in a year.

The surge in settled transactions is largely due to tokenization of other cryptocurrencies on-chain and the related DeFi boom. Recent Glassnode data showed that Tether volume on Ethereum had exceed $600 billion in total, with daily volumes averaging $35 billion per day.

Total value locked (TVL) in DeFi is now approaching another all-time high at $13 billion.

Source: DeFi Pulse

Uniswap remains at the top of the leaderboard by TVL with over 21% dominance and $2.71 billion in locked assets, followed by Maker, WBTC and Aave. The latter three have all seen a slight price correction over the last few days despite the growth seen in both Bitcoin and Ethereum.

The Audius (AUDIO) token saw a 1000% price increase after being listed by Binance last week. Audius is a decentralized music streaming platform, and the Binance listing saw it exhibit rallies that hark back to the ICO craze of 2017, reminding traders that there are still serious gains to be had for discerning traders, or simply lucky ones. 

In a similar vein, a blossoming DeFi craze has seen on-chain trading cards sell for tens of thousands of dollars. The trading cards are technically NFTs and represent the creators of various DeFi protocols. A Vitalik Buterin Legendary card last sold for $33,000, with many comparing the trend to that of the Crypto Kitties game.

Bullish Price Action May Lie Ahead

ETH is currently trading in the low-$400 range, after a breakout and 12% price increase over the course of last week following the news that PayPal would enable buying and selling of crypto in Q1 2021. Analysts are viewing this break as sustainable, citing the fact that miners are keeping their mining rewards rather than selling.

In fact, other holders seem to share their confidence. 60% of the total ETH supply hasn’t moved in over a year, indicating that a majority of holders are confident that the price will continue to increase, perhaps in anticipation of Phase 0 which is due in the weeks ahead.

Heavy resistance is expected at the $420 mark, an area that has previously provided strong support for falling prices. If resistance proves too strong, prices may fall to historical support levels at $390 – $400, where a small uptick might ensue, and the next line of resistance would likely be at $360. However, if price breaks through $420, the path appears to be clear of strong resistance all the way to $450.

Media Roundup

IOSG Ventures are hosting the IOSG 7th Old Friends Reunion – DeFi Summit 2020 event on October 26. Speakers include Ethereum co-founder Vitalik Buterin, Aave founder and CEO Stani Kulechov, Chainlink CEO Sergey Nazarov, as well as representatives and executives from MakerDAO, Near, Synthetix, Kyber Network, and dozens of other major projects. The event will be held in Shanghai, China.

The Ethereum Developer Alliance is hosting an online event called How Raiden enables low latency, linearly scalable, cheap token transfers on October 28. The event has approximately 20 registered attendants who will discuss how the Raiden blockchain layer 2 scaling solution works.

Atato is hosting an event on October 29 called #ETHBKK. Sponsored by the Ethereum Foundation, ConsenSys, and OMG Network, among others, the event features many high-profile speakers. These include ConsenSys founder Joe Lubin, OMG Network CTO Kasima Tharnpipitchai, Kaleido founder and CEO Steve Cerveny, and many more. Speakers will discuss Ethereum interoperability and blockchain investment as well as other topics.

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Conor Maloney
Conor Maloney Analyst