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In addition to the high expectation for Ethereum 2.0, the high time frame breakout and daily gas usage on Ethereum remain key positive factors.
Eth2’s momentum accelerates in correlation with price
The Eth2 mainnet will be launched when the number of Ether (ETH) pointed to in the Eth2 deposit agreement address reaches 524,288.
CryptoQuant data found that the stake value in the Eth2 deposit agreement address shows a correlation with the ETH price.
Ki Young Ju, CEO of CryptoQuant, noted that the correlation appears to grow as the launch date approaches. He he wrote:
“As the launch date of ETH 2.0 approaches, there appears to be a growing correlation between the price of $ ETH.”
This trend was anticipated by analysts due to the importance of Eth2. When activated, Eth2 is expected to improve the transaction capacity of the Ethereum blockchain network.
Since nearly $ 300 million worth of ETH would be deposited at the Eth2 deposit agreement address, it could also reduce the selling pressure on ETH over the long term.
Breakout in a high time frame
ETH’s price topped $ 500 for the first time since May 2018, breaking through a two-year gap. It has since risen above $ 580, demonstrating strong momentum and with little resistance above $ 620.
If ETH breaks out of $ 620, the next time frame resistance levels are found at $ 784, $ 915, and $ 1,200.
Traders expect ETH to reach $ 620 in the short term and possibly consolidate below it until the next breakout.
A pseudonym trader known as “Rookie” She said ETH could reach $ 620 in just a few days, as it shows strong technical momentum.
Though both Bitcoin (BTC) and ETH prices retreated over the weekend, analysts say TWAP algorithms could pick up momentum once again. Qiao Wang, a quantum trader and analyst, he wrote:
“The reason weekends exist is to shake weak hands before institutional buyers re-activate their TWAP algorithms on Monday.”
Fundamentals are supporting the rally
According to Etherscan’s on-chain data, daily gas usage on Ethereum hovers at an all-time high.
The term “gas” refers to transaction fees on the Ethereum blockchain network. When gas consumption is high, the activity of users in the chain increases.
The increase in daily gas usage probably stems from two sources: deposits at Eth2 and the growing number of decentralized finance users, or DeFi.
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