Bitcoin is not the only protagonist of the ongoing bullish crypto market.
While the leading digital asset popped above $18,000, ready for a new all-time high, the price of Ether also surged to nearly $500, last seen in June 2018.
Both Bitcoin (BTC) and Ethereum (ETH) are enjoying a hot streak this week. While BTC’s realized cap topped at $130 billion on Nov. 17, ETH’s realized cap grew 3.9% week-over-week and is at its highest level since Sept. 2018 at over $36 billion.
According to In/Out of the Money Around Price (IOMAP) indicator of IntoTheBlock, “there is little resistance ahead until $581, with strong support around the $460 mark.”
At $460, 80% of the addresses currently holding ETH are experiencing profit.
Another encouraging pattern is the percentage of ETH supply on cryptocurrency exchanges, which continues to decrease steadily. About 3 million ETH has moved off centralized exchanges since September, which according to quant trader Qiao Wang could be “a result of “productive” activities like Uniswap yield farming.”
Wang further believes “ETH could outperform BTC in the next bull run. Perhaps not on a risk-adjusted return basis, but likely on an absolute return basis.”
ETH in smart contracts
ETH on centralized exchanges
— Anthony Sassano | sassal.eth
(@sassal0x) November 16, 2020
Another reason for this movement could be ETH holders depositing their ETH for staking for the first stage of ETH 2.0 – the “Beacon Chain.”
The progress of Eth 2.0 staking is behind schedule, with another 13,424 staking validators are required in the next 2 weeks to trigger the launch of ETH 2.0.
With about 80% of the required validators still missing, the current rate is not enough, but it is expected to ramp up towards the end of the deadline.
Almost 20% of the phase 0 staking goal have been reached.
— glassnode (@glassnode) November 18, 2020
Still, when Phase 0 launches, it doesn't change anything about Ethereum as the Beacon Chain doesn’t have accounts, and it can’t handle smart contracts either. It is simply the first stage in the transition of the second-largest network from a proof-of-work to a proof-of-stake consensus model.
The Beacon Chain will undergo testing in a live environment, and in the future, when Ethereum shard chains (Phase 1) are launched, the two blockchains will eventually be merged, at which PoS mining will be enabled, bringing faster processing times and cheaper transactions.
2,272 ETH staked in past 24 hours.
0.5% gain toward genesis in past 24 hours.
Time elapsed from first deposit until minimum genesis target:
70,459 ETH daily trend is needed to hit genesis target.
— @DepositEth Reply Bot (@EthDeposit) November 18, 2020