Benefiting from Ethereum 2.0, investors may bet on ETH

特邀专栏作者

2020-06-03 20:54 (UTC+8)

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Bitcoin has entered a positive season, with June being a seasonally bullish month, but its recent gains pale in comparison to that of Ethereum (ETH), as the ethereum blockchain nears a pivotal new iteration.

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Summary: Bitcoin has entered a positive season, with June being a seasonally bullish month, but its recent gains pale in comparison to that of Ethereum (ETH), as the ethereum blockchain nears a pivotal new iteration.

Bitcoin, the largest cryptocurrency by market capitalization, was up more than 8 percent last week and 9.5 percent through the end of May. Bitcoin rose nearly 35 percent in April, according to the Bitcoin Price Index on the CoinDesk platform.

Meanwhile, the price of ether rose 16% last week and 12% in May. Ethereum’s growth in non-price metrics has also been impressive compared to Bitcoin.

For example, the seven-day moving average of active ethereum addresses hit a 12-month high of 337,986 on Sunday, according to data provided by blockchain intelligence firm Glassnode. Over the past two weeks, active addresses on Ethereum have grown by more than 10%, while active Bitcoin addresses have dropped by almost 5%.

On a more positive note, Bitcoin outpaced major traditional assets in May. Gold, the traditional safe-haven asset, is up 2% for the month. Meanwhile, the U.S. dollar index , which tracks the greenback against major currencies, fell more than 0.5 percent, while the S&P 500 gained 4.5 percent.

Analysts Expect Both Bitcoin and Ether to Maintain Bullish Momentum in the Short Termsecondary title

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The picture shows: Bitcoin historical performance from 2012 to June 2019

Bitcoin has had a good month of June in six of the past eight years. Additionally, as previously mentioned, cryptocurrencies also posted gains in the second quarter for the sixth of the past eight years.

Analysts believe that macro factors also support Bitcoin's continued rise.

Matthew Dibb, co-founder of cryptocurrency tracker and index fund provider Stack, said: “Over the past week, global tensions and uncertainty have increased and further supported the narrative of Bitcoin to protect its downside risk. "

President Trump on Friday announced new targeted sanctions on Chinese officials and directed his administration to revoke special trade waivers for Hong Kong. The move was in retaliation for Beijing's decision to impose new security laws on Hong Kong to curb its autonomy. Tensions could escalate further as China is now considering plans to halt soybean imports from the United States.

Dibb also expects a weaker yuan and the possible introduction of negative interest rates in the U.S. to bode well for bitcoin and precious metals like gold.

Dibb added: “Technically, we expect a breakthrough of $10,000 in the next two weeks and a further push to $11,000 by July.” Meanwhile, Su Zhu, CEO of Triple Arrows Capital, said : "BTC's moment will be a clean break of the key round figure of $10,000."（BTC's back and forth position at $10,000 will be completely broken in an instant。）

In fact, Bitcoin has failed several times over the past three weeks or so, shaking off selling pressure in the $9,900 to $10,000 range. Thus, a convincing break above psychological resistance could lead to more buyers joining the market, leading to bigger gains.

As of this writing by this editor (0:00 June 2), cryptocurrencies are stuck in a narrow price range. The direction of the breakout range could set the tone for the next big move.

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Pictured: Bitcoin effective supply trend, Glassnode

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Ethereum 2.0 upgrade: it may push up the price of ETH currency

Ethereum’s imminent transition from proof-of-work (PoW) to proof-of-stake (PoS), a major upgrade to Ethereum 2.0, may herald a turnaround for Ethereum in May. With the upcoming release of Eth 2.0 in the third quarter of 2020, buying pressure on cryptocurrencies may remain strong in the short term.

“Ethereum staking is coming, it’s hard to be bearish. I suspect there will be more ethereum staked than projected 10-30 million.” tweeted David Schwartz, senior software engineer at decentralized exchange Nash , if many people choose to invest through exchanges/rocket pools, it may even exceed 50 million.

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Pictured: Analysis of addresses holding 32 ETH

The sharp increase in the number of addresses holding 32 ETH or more, the balance a holder must maintain to become a validator on Eth 2.0 (and thus earn staking), suggests that investors are accumulating coins in preparation for the upgrade.

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Figure IamCryptoWolf Tweets ETH/BTC Monthly MAC

The rise of the MACD above zero indicates that the ETH/BTC pair is bullish from a bearish trend. In short, the market expects ether to outperform bitcoin.

Lennix Lai, head of financial markets at cryptocurrency exchange OKEx, expects bitcoin and the broader cryptocurrency market to benefit from increased investor interest in ether. Lennix Lai said: “The upcoming ETH 2.0 [upgrade] will encourage more people to invest in ETH and ultimately benefit the sentiment of the entire crypto market.”

I (BlockChan. Cheng Wei) important statement disclosure: At the time of writing this article, this editor does not hold any cryptocurrency.

Disclaimer: This week's analysis of the important points of view of Bitcoin is purely a "new point of view of the block" analysis of market sensitivity, please reprint must declare "source-new point of view of the block (chengwf.com)", thank you!

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