Bitcoin showed significant growth in November, but Ethereum did not follow this dynamic, as it usually does. ETH broke up through the $400 level but immediately pulled back to the $380 mark. According to experts, in the near future, significant growth of the leading altcoin can be expected.
The main fundamental factor that can ensure the growth of ETH is the launch of Ethereum 2.0 and the transition of the blockchain to the Proof-of-Stake consensus. Vitalik Buterin has repeatedly stated that work on ETH 2.0 is proceeding in accordance with the Roadmap and there are no significant unsolvable problems. But at the same time, two external factors at once can affect the timing of the Ethereum update – the US elections and the second wave of the coronavirus. Therefore, the launch date for ETH 2.0 may be shifted, but no later than to the end of 2020. The later reaction of one of the project auditors also speaks in favor of such a postponement.
However, ETH will not add as much in price as it did in the summer due to the growing popularity of DeFi projects. Thus, after the update, Ethereum will grow smoothly if everything continues to go according to plan. However, such complex projects are usually implemented with certain difficulties. In this case, amidst long-term growth, ETH will be corrected, possibly several times.
As for the impact of the US presidential election on the cryptocurrency market, most experts are positive. The current elections are characterized by increased nervousness. Investors will look for a safe haven. Leading cryptocurrencies can provide this opportunity. Meanwhile, Ethereum is becoming even more attractive than Bitcoin, since it is a more technically advanced cryptocurrency. Market participants are beginning to understand better the nature of different cryptocurrencies and therefore they will opt for ETH. Elective fever in the United States could lead to the rise of the main altcoin to the level of $700.
Another statement by PayPal agrees with this forecast. The service recently announced the launch of a cryptocurrency wallet. 2-3 times more customers responded to it than expected. PayPal went to meet the wishes of users and increased the limits on the purchase of cryptocurrency by 2-3 times, from $10 thousand to $15 thousand. In addition, PayPal announced that it will add support for other cryptocurrencies. Currently, the service’s multicurrency wallet has four currencies: BTC, ETH, Litecoin (LTC), and Bitcoin Cash (BCH). Most experts are confident that PayPal’s statements have a positive effect on the cryptocurrency market and ETH in particular since the Ethereum blockchain serves as the basis for many new cryptocurrencies and cryptocurrency services.