- A timely ETH 2.0 launch will become a strong bullish catalyst for Ethereum price.
- On-chain metrics support the short-term bullish thesis.
At the time of writing, Ethereum price is trading at $475. The second-largest cryptocurrency by market capitalization stopped short of $500 on Wednesday, November 18, as the upside momentum started fading away across the board. However, several fundamental factors and on-chain metrics imply that ETH is poised for substantial long-term growth.
Ethereum 2.0 is looming large
The cryptocurrency community is waiting for the launch of the second version of the Ethereum protocol, also known as Serenity. The experts believe this event may become a major milestone for the whole cryptocurrency industry as it will transform the ecosystem of one of the most used tokens. It is expected to make the network more stable, secure, and scalable.
The launch is scheduled for December 1. However, the actual date will depend on whether the project secures at least 524,288 ETH at its dedicated deposit smart contract. While the team managed to secure only 19% of the required amount, there is little doubt that the update will be launched.
On-chain metrics support the bullish case
Exchange inflow has been decreasing recently, meaning that traders are less inclined to sell their coins.
This metric shows the number of ETH sent to large trading platforms on a daily basis. Sudden spikes in this metric are usually accompanied by increased downward pressure, but there current low levels suggest that there is nothing to worry about.
Ethereum’s Exchange Inflows
Additionally, the network continues growing in sync with Ethereum price, which is typically a positive sign. A growing number of new addresses joining the network has usually lead to upward price action.
Ethereum’s Network Growth
Ethereum price forecast
It is worth mentioning that this altcoin sits on top of significant support, based on IntoTheBlock’s “In/Out of the Money Around Price” model. The IOMAP cohorts show that over 1.2 million addresses had previously purchased 10.3 million ETH between $460 and $473.
Such a significant supply wall can absorb any bearish pressure. If so, a potential rebound from this demand wall may even send Ethereum price above $500. The IOMAP cohorts show there are no considerable resistance barriers ahead.
Once $500 is sustainably cleared, the upside momentum will likely gain traction and take the smart contracts giant towards $700 or $900.
ETH In/Out of the Money Around Price
Due to the unpredictability of the cryptocurrency market, the bearish outlook cannot be disregarded.
If the Ethereum Foundation misses the deadline for ETH 2.0’s launch, selling pressure could spike up. Under such circumstances, a move below the $460 support level will invalidate the bullish scenario. Investors might even panic sell pushing prices down to the next crucial support at $400.