Ethereum price adds 13% as Bitcoin Rally Above $16,000
- Ethereum price bullish
- Eth2 staking continues
- Infura outage
- Bitcoin price firm above $16,000
Trending News: Bitcoin, Ethereum, Infura, Eth2
The Bitcoin price is on a roll. Days after blasting past $14,000, the coin has added over $2,000 and trending above $16,000.
A new milestone and a level rested by prices three years ago when BTC prices surged to $19,800, registering new highs. At this pace, however, supporters are pretty confident of Bitcoin’s and crypto’s prospects.
Leading the pump is the political flux in the United States and claims that Wall Street is warming up to cryptocurrencies.
Their eyes, Bitcoin supporters assert, is fixated on the coin for obvious reasons. While the crypto scene is full of potent projects, Bitcoin stands out because of its first-mover and dual functionality.
Michael Saylor of MicroStrategy, crypto influencers, including public companies, agree that Bitcoin is a store of value. It can also function as a medium of exchange and that’s why developers came up with the Lightning Network, a scalable, low cost, and high throughput payment channel for holders wishing to spend their coins.
Ethereum Hard Fork and Infura Outage
Ethereum is also one of the most active projects this week. After the announcement of the official deposit contract for Eth2 Beacon Chain mainnet, validators are pouring in staking their coins. However, at the current pace, there are concerns that the Dec 1, 2020 deadline may be too tight and 524k ETH coins may not be staked by that time.
A possible explanation is around the opportunity cost and the lucrative deals presented by DeFi protocols. Though rooted in Ethereum, their APR is better than the staking rewards offered by Eth2 Beacon Chain staking currently set at 25%–even with further incentives of slashing and penalty reduction to within 25 to 33 percent of Medalla test network level.
As validators aim to meet the minimum conditions for launch, a stealth upgrade by Ethereum developers on Nov 11 temporarily fractured the network.
Infura, MetaMask, and possibly hundreds of miners using stable but dated versions of the Geth clients were affected. Leading exchanges paused ETH and ERC-20 withdrawals.
However, the issue has been patched and the network is up and running.
Ethereum Price Analysis
The uptrend is firm. In the last week of trading, the Ethereum price is up 13 percent against the greenback, outperforming BTC.
From the daily chart, bulls are pushing higher and the path of least resistance is clearer. Even though there are signs of weakness, bulls are determined to register new 2020 highs and rewind the recent dip of September and October.
Ideally, a close above $480 and $500 could spark more demand as buyers aim for $640. Notice that prices found support from around the 61.8 percent Fibonacci retracement level of the July to August trade range. A Fibonacci extension from the same level project prices to reach over $650, the 161.8 percent Fibonacci level before bulls are exhausted.
For this to pan out, the break above Aug 2020 highs should be with high trading volumes. A firm close above this mark with participation levels exceeding those of Sep 5—according to Coinbase data, will be the right Launchpad for $650, and better in the next two to three months.
Technical chart courtesy of Trading View
Disclaimer: Views and opinions expressed are those of the author. This is not investment advice. Do your research.
Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies.
