Bitcoin grew by about 4% over the day and is ready to break up through the $16K level. Meanwhile experts expect a strong correction and Ethereum’s soar.
Amidst the worldwide chaos caused by the US elections, bitcoin continues its explosive growth. However, market players are calling for caution. As a rule, such a big rise is accompanied by a subsequent correction, which can lead to the price of BTC even lower than it was before the start of growth, that is, at the level of $13K. Just now bitcoin has pulled other cryptocurrencies. Most altcoins also added about 10%. Ethereum grew less, by about 7% per day and 16% per week. However, experts recommend taking a closer look at the leading altcoin.
ETH has a fundamental factor of its own beyond the US election. The Ethereum Foundation announces its readiness to launch the zero phase of Ethereum 2.0, if a sufficient amount of ETH is provided in validators accounts by 23 November. Thus, the next step will be taken towards the transition to the Proof-of-Stake consensus algorithm. Until now, the Ethereum blockchain is powered by Proof-of-Work. There is a high probability that about 16 thousand users will fulfill the necessary condition and transfer about 525 thousand ETH (about $227 million) to the ETH 2.0 deposit contract. In this case, altcoin will receive a new impetus for growth. ETH is predicted to continue moving towards the $700 level by the end of the year.
However, there are several levels of resistance for ETH. The closest one is $450, the next is $550. The most serious resistance level is $600, Yashu Gola, an analyst at the popular NewsBTC portal stated. In his opinion, it is at the price of $600 ETH may stop rising, even if all work on ETH 2.0 continues successfully. This level is indicated by technical analysis.
Fundamental analysis is based on the fact that Ethereum blockchain is currently less decentralized than bitcoin as for developers. Therefore, even a minor development mistake when launching Ethereum 2.0 can do a lot of harm. And the ETH price could go down. Yashu Gola believes that the price of $415 acts as a support level. If ETH breaks it down, the crash could continue to $370. However, such a scenario is unlikely. There is still no reason to believe that Ethereum’s update plans could be significantly disrupted. Even if the required staking fund is not formed a week before December 1, this will only lead to the postponement of the launch of the zero phase by a week.
In favor of the growth of the leading altcoin, the second wave of the COVID-19 pandemic may also work. It is highly likely that quantitative easing programs will be continued with the issuance of unsecured fiat money. And the possibility of dismissing the massive Christmas holidays is real. All this will lead to an excess of free money that will go into the crypto market and into ETH as an alternative to bitcoin. These assumptions are used to predict the price of ETH at $700 by the end of the year.