- Ethereum is over 208% away from its all-time high and could double in price to $800, according to Josh Rager.
- Ethereum fundamentals reach new all-time highs and indicate a continuation of the bullish trend for ETH.
The crypto market has had a week of profits. Ethereum and Bitcoin lead the chart with 14.49% and 12.72% respectively. During the year, ETH has had a gain of 250% and BTC of 115%. However, ETH could quickly approach its all-time high as 2020 comes to an end. The launch of phase 0 of Ethereum 2.0 will be the catalyst.
At the time of publication, ETH is trading at $453 with gains of 2.23% in the last 24 hours and 23.76% in the last 30 days. The cryptocurrency has come a long way since the beginning of the year when it was traded below $100. The beginning of its transition to a consensus protocol based on Proof-of-Stake seems poised to produce a supply shock in the market that will have a positive impact on its price.
In that sense, trader Josh Rager has indicated that ETH has plenty of room to grow from this point. In the next few months, ETH could reach $700 or $800, according to Rager:
Let’s put this in perspective. BTC is currently only 26% away from its all-time high. ETH, on the other hand, is currently over 208% away from an all-time high price. Recently, ETH been outperformed by BTC but now looks quite bullish and has a lot of space to pump and catch up.
Upon reviewing Ethereum’s fundamentals, it is possible to find support for Rager’s bullish prediction. Glassnode data indicates that the mean hash rate for Ethereum in the last 24 hours has reached an all-time high of 259 T/hashes per second. Since the end of October, Ethereum has been setting new records in this metric.
Glassnode also reveals bullish data for Ethereum in its derivatives. The open interest for Ethereum futures in Bitfinex reached a high of 8 months in its daily average with more than $18 million. As shown below, the open interest for ETH derivatives on this exchange has increased significantly.
In the number of active addresses per day that interact with the network, Ethereum is approaching its peak since mid-October, as indicated by Santiment. Based on this metric, the firm predicts a possible migration of the gains that have dominated in Bitcoin to Ethereum.
Deposit contract for Ethereum 2.0 at 10%
The deposit contract for the deployment of the Beacon Chain, the Proof-of-Stake blockchain that will support Ethereum 2.0, was launched on November 4th. The activation of the next phase requires that 524,288 ETHs be locked into the contract. This is equivalent to about $200 million at the current price of ETH.
Data from Dune Analytics shows that currently 9.39% of the deposit contract has been completed. This is equivalent to 49,089 ETH or $22 million sent in 1,503 transactions with 232 unique depositors. With a tentative date of December 1st to obtain 100% of the required ETH, the launch of the next phase is well underway.
Ethereum’s inventor, Vitalik Buterin, has been one of the biggest contributors by sending 3200 ETH in 10 transactions of 32 ETH each. Buterin seems to be trying to boost investor confidence and increase the amount of ETH locked in the deposit contract.
If the price of ETH rises enough, investors may be motivated to participate. However, there is uncertainty about the rewards that investors will receive and technical complications to configure a validator node that not all platform users can overcome.