Analysis: 3 Reasons Why Ethereum Price Could Hit $500 in 2020
Editor's Note: This article comes fromCointelegraph Chinese (ID: CointelegraphChina), Author: JOSEPH YOUNG, reprinted with authorization by Odaily.
Editor's Note: This article comes fromETHCointelegraph Chinese (ID: CointelegraphChina)BTCCointelegraph Chinese (ID: CointelegraphChina)
On November 7, Ethereum (
) rose to $464, while Bitcoin (
) price retreated to $15,500 after rising to around $15,900. Based on Ethereum’s strong momentum, traders are expecting a bigger rally in the short term.
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ETH higher time frames are bullish
The bearish scenario shows investors rejecting the $360 support level, followed by a sharp decline. The bullish case suggests confirmation of $360 as support and a possible run towards $800.express：
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ETH/USD weekly chart. Source: Crypto Capo, TradingView.com
While talking about the $360 support level, traders
"If this level holds, we're looking at $815 in the next few months."
When a major resistance level is breached, a breakout move quickly follows, which is why traders are speculating more on the price of ETH than in previous weeks.
Skew’s data also shows that ETH’s 24-hour futures trading volume has increased significantly since late October. This shows that traders identify $450 as an important level for ETH and they are either defending or attempting to break above this level.
ETH futures daily trading volume Source: Skewdatasecondary title
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ETH 2.0 is another bullish factor
, 75% of ETH addresses are currently in profit. In comparison, 98% of Bitcoin addresses are profitable.Generally speaking, investors are more likely to sell when they are making large unrealized profits than when they are losing money on their investments. Therefore, compared to Bitcoin, the number of profitable addresses in ETH is much smaller, which is a positive indicator and supports the view that the upside still has room to continue.。
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ETH 2.0 is another bullish factor
ETH 2.0 is currently scheduled to launch on December 1st, which some analysts speculate could lead to
