Here are likely reasons why Ethereum reached two consecutive all-time highs in just a single day
On Nov. 2, the second-largest cryptocurrency, Ethereum, soared first to the historic peak of $4,477. A few hours later, the native cryptocurrency of Vitalik Buterin’s blockchain spiked as high as $4,643.
This double price rise may have been caused by the following reasons.
Massive rise of ETH active addresses
Data shared by popular on-chain analytics team Santiment shows that, in the past four weeks, the number of active Ether addresses has surged by a whopping 45%. This, according to the analytics team of the company, shows a spike in the coin’s utility.
Ethereum’s history now goes back six years; it was created after Bitcoin clones Litecoin and Dogecoin, with Mike Novogratz being the first Wall Street investor, who in 2015 bought a staggering 500,000 ETH from Vitalik Buterin at a price slightly under $1.
🥳 #AllTimeHighs just keep on coming for #Ethereum, as the 2nd largest asset in #cryptocurrency has eclipsed $4,643 for the first time in its 6-year history. Utility is a primary indication as to why, as active addresses are up 45% compared to 4 weeks ago. https://t.co/54hTTh0Lbo pic.twitter.com/ogxKYIaNQ6— Santiment (@santimentfeed) November 3, 2021
Besides, according to Chinese crypto journalist and blogger, Colin Wu, Chinese traders are beginning to use Ethereum as a hedge against inflation. Thus, ETH gradually begins to compete with Bitcoin in this field.
Besides, Ethereum remains the leading platform for users of dapps, smart contracts and NFTs.
744,020 ETH burned since Aug. 5
According to watchtheburn.com, since Aug. 5—the day when the EIP-1559 upgrade (also known as the London hardfork) was rolled out with the burning mechanism for ETH fees—over 744,000 Ethers have been burnt.
That is the equivalent of an astounding $3,424,606,965.
The implementation of the eliminating mechanism for ETH that came along with the London hardfork has started making Ethereum a deflationary cryptocurrency.
Since the introduction of EIP-1559, Ethereum has risen approximately 33%, becoming more and more deflationary.
One more likely reason is that CME announced the upcoming launch of micro Ethereum futures in early December.
Ethereum hashrate soars to a new ATH
As covered by U.Today, the Ethereum hashrate reached a lifetime peak of 812,768 GH/s on Tuesday, Nov. 3.
Even though ETH fees are being burned now, as written above, miners continue to be attracted to the Ethereum network as they can be “tipped” by network users who want their transactions to be verified faster—a similar mechanism to that utilized by Bitcoin users.
Crypto Analyst Nicholas Merten Makes Massive Ethereum Prediction for End of Bull Cycle – Here’s His Target
Prominent crypto analyst Nicholas Merten says that top smart contract platform Ethereum (ETH) may grow another 325% before the current bull cycle comes to an end.
In a new strategy session, the host of DataDash tells his 458,000 YouTube subscribers what he thinks it will take for Ethereum to eventually smash the $20,000 level.
“If everything goes perfect for Ethereum, if we get that opportunity to be able to get ETH to launch properly, people using roll-ups, whether it be zero-knowledge roll-ups or optimistic roll-ups, generally ‘layer-2 solutions,’ we could see a $20,000 Ethereum this cycle. I know it sounds crazy but when you look at the logarithmic chart we’ve seen these kinds of percentage returns before.”
Rollups are solutions that execute transactions outside the main Ethereum chain, but record transaction data on it. The two types of roll-ups are zero-knowledge (ZK) rollups and optimistic rollups.
The closely followed analyst says that if Ethereum maintains solid fundamentals, a rally to the $20,000 may not be as overly optimistic as it sounds. He notes that such a gain would only be about half of what ETH achieved in the first five months of 2021.
“I think it’s very reasonable we could see this kind of price level. Somewhere between our neutral and optimistic target. To play it safe, I would say that we’ve got a really solid steady stream of price action for Ethereum ahead of us. The key thing to understand is that there are periods of this cycle where Ethereum outpaces Bitcoin, which makes these higher targets reasonable.”
Ethereum is currently trading for $4,685 at time of writing, up 7% over the last week while Bitcoin has remained almost completely sideways in the same timeframe.
Ethereum price builds the momentum to hit new all-time highs
- Ethereum price develops an entry condition before a test of $5,000.
- The outperformance of Bitcoin is likely to be sustained.
- Downside risks remain but are limited.
Ethereum price is up more than 16% for the week, reflecting a resurgence of buying pressure despite the last three weeks of uncertainty. Point and Figure Analysis indicates a bullish entry opportunity is present.
Ethereum price action prepares for another run at $5,000
Ethereum price is positioned to be the primary leader in the cryptocurrency space again. It has broken out above the upper trendline of the bear flag it was trading in, denying any short sellers an opportunity to continue further selling pressure. The $4,800 price level is the final resistance zone that bulls must cross to put Ethereum at new all-time highs.
A double-top at $4,800 currently exists on the $50/3-box reversal Point and Figure chart. That double-top top creates what is likely the final buying opportunity before Ethereum hits its new all-time high. Therefore, the hypothetical long setup is a buy stop order at $4,850, a stop loss at $4,600 and a profit target at $6,250. The projected profit target is derived from the Vertical Profit Target Method in Point and Figure Analysis.
Conservative traders may wish to wait for a pullback from the current double-top and then look for a triple-top to develop. Additionally, conservative traders could wait for a Bear Trap, Bearish Fakeout, or Bearish Shakeout pattern before going long.
ETH/USDT Daily Ichimoku Chart
However, downside risks remain. Ethereum could very quickly develop a deep retracement towards the $3,300 level despite a breakout above the former bear flag. Hidden bearish divergence is now present on the daily Ichimoku chart, warning traders that the current upswing may be a false move. A daily close that returns Ethereum inside the bear flag would likely trigger a move south and invalidate any bullish entry opportunities on the Point and Figure chart.
Ethereum-Based Altcoin Erupts 280% in Just Seven Days After Announcing New Gaming Partnership
An altcoin that specializes in financial services is surging after forging a new partnership with one of the hottest metaverse games.
The price of Request Network’s native token REQ exploded 280% to the upside as news spread that popular virtual world The Sandbox (SAND) had started using Request’s basket of accounting services.
The altcoin rose from $0.20 to $0.76 in a matter of days. At time of writing, REQ is trading for $0.73.
According to the project’s website,
“Payment experiences should be free from artificial barriers imposed by closed ecosystems. We work together with leading innovators and organizations in the decentralized financial (DeFi) ecosystem to create seamless financial experiences.”
Main features of the Request Network include generating invoices to receive payments in different cryptocurrencies as well as accounting tools for financial management.
The Sandbox co-founder Sebastien Borget says that only Request Network offered the scope of solutions needed to ensure efficient workflow.
“Payments and accounting are challenging for large companies that deal in crypto. Making manual payments to large numbers of blockchain wallet addresses, and recording the transactions took up precious time and energy from the team each month.
We really needed a way to automate payments to our employees and contractors, and easily account for the company’s crypto transactions and assets during annual financial audits.
Using Request Finance has helped us slash the time we spent on making crypto payments by 90% every month. That frees up our time and mental resources to focus on building a better platform for our community of creators and gamers.”
Request Network has forged a number of partnerships as well, including with Maker (MKR), Aave (AAVE), Ocean Protocol (OCEAN), and The Graph (GRT).