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  • Ethereum hits the highest level since July 2018 amid growing ETH 2.0 adoption.
  • On-chain metrics imply that ETH may continue moving upwards.

At the time of writing, Ethereum (ETH) is trading at $540. The second-largest digital asset with the current market capitalization of $61 billion and an average daily trading volume of $22 billion has gained over 6% in the last 24 hours and 18% on a week-to-week basis. 

The coin hit a new multi-year high at $563 during early Asian hours before the profit-taking pushed it back below $550; however, fundamental and on-chain metrics imply that the bullish run is not over yet.

Ethereum 2.0 support is growing fast

As FXStreet previously reported, ETH price movements grossly depend on ETH 2.0 support to secure at least 524 288 ETH  from 16,384 validators. On Monday, November 23, this precondition should be met to allow the developers to start rolling out Beacon Chain, the critical component of Ethereum 2.0, on December 1, in line with the schedule.

ETH 2.0 network status

ETH 2.0 network status

According to Ethereum 2.0 launchpad, 241,408 ETH are already staked, which nearly 50% of the required amount. Notably, In the middle of the previous week, the team managed to secure only 19% of the necessary amount.

The adoption rate jumped after a Dubai investment firm, IBC Group, transferred  $10 million worth of ETH to the deposit contract. At the same time, the co-founder of Ethereum, Vitalik Buterin, vowed to do whatever it takes to meet the deadline.

Ethereum price forecast

IntoTheBlock’s “In/Out of the Money Around Price” model shows that the local support for the second-largest comes at $530 as nearly 500,000 ETH addresses purchased over 2 million coins around that price. If it is broken, the sell-off may be extended to a more significant barrier at $480. The IOMAP cohorts reveal that over 730,000 addresses previously purchased 10 million ETH between $473 and $490. 

ETH In/Out of the Money Around Price

ETH In/Out of the Money Around Price

Such a significant supply wall can absorb the bearish pressure and trigger a new bullish wave that will send the price back above $500.  Meanwhile, on the upside, there are little to no resistance barriers up until $620, meaning that the price is well-positioned to continue growing.