• 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.

As FXStreet recently reported, Ethereum's co-founder Vitalik Buterin vowed to do everything to meet the deadline, and if he sticks to his promise, prices may get a powerful boost.

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

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'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

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.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC bloodbath continues, near 30% down from its ATH

Bitcoin Weekly Forecast: BTC bloodbath continues, near 30% down from its ATH

Bitcoin price extends its decline and trades below $80,000 at the time of writing on Friday, falling over 15% so far this week. This price correction wiped $660 billion of market capitalization from the overall crypto market and saw $3.68 billion in total liquidations this week. 

More Bitcoin News
Cardano poised for double-digit drop amid market weakness

Cardano poised for double-digit drop amid market weakness

Cardano price is extending its decline by nearly 7%, trading around $0.60 on Friday after falling 23% this week. Santiment data support this decline as ADA daily active addresses are falling, and the technical outlook indicates a continued correction, with ADA potentially facing an additional double-digit decline.

More Cardano News
XRP short-term holders dominate sell-off as whales buy the dip

XRP short-term holders dominate sell-off as whales buy the dip

XRP short-term holders dominated the selling activity during the recent market crash. XRP whales have been accumulating more tokens during the crash, adding over $1 billion worth of tokens. XRP could bounce off the lower boundary of a descending channel if it fails to hold the $1.96 support level.

More Ripple News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP continue to sell off

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP continue to sell off

Bitcoin (BTC) price continues declining on Friday after falling more than 15% this week. Ethereum (ETH) and Ripple (XRP) followed BTC’s footsteps and declined by nearly 24% and 21%, respectively.

More Cryptocurrencies News
Bitcoin: BTC demand and liquidity conditions remain weak

Bitcoin: BTC demand and liquidity conditions remain weak

Bitcoin price has been consolidating between $94,000 and $100,000 since early February, hovering around $98,000 at the time of writing on Friday. Despite this consolidation, US Bitcoin spot ETFs data recorded a total net outflow of $489.60 million until Thursday, hinting signs of weakness among institutional investors. 

Read full analysis
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

BTC

ETH

XRP