Ethereum finally retested $500 before falling back down to $490 levels
This feat was accomplished as the ETH2.0 deposits hit 20% of the required 524,288 ETH for Phase 0 to kick-off
Investors could increase the rate of their 32 ETH deposits as December 1st draws closer
Consequently, ETH could rally a second time above $500
The digital asset of Ethereum (ETH) has finally broken the $500 price ceiling to set a 2020 high of $501.84 – Binance rate. Ethereum last experienced these price levels in June of 2018 and during the brutal bear market that followed the 2017/2018 bull market.
How High Can Ethereum Go?
A quick glance at the daily ETH/USDT chart reveals that Ethereum is more or less in overbought territory as shall be explained using the chart below courtesy of Tradingview.
To begin with, trade volume is in the green further confirming the bullishness
Ethereum’s price is above the 50, 100 and 200-day moving averages, also confirming bullishness
However, the daily MACD is exhibiting signs of an overbought situation
The daily MFI and RSI are also high at 84 and 75 respectively
$480 to $490 has now flipped into a support zone and could mark an area of consolidation moving forward
ETH2.0 Deposits Hit 20% of 524,288 ETH Needed
Ethereum rallying above $500 could be as a result of investors speculating that the price of ETH could go higher as Phase 0 of ETH2.0 is launched on December 1st.
A quick glance at data from CryptoQuant.com reveals that a total of 106,976 ETH of the required 524,288 ETH has already been sent to the deposit contract for ETH2.0. This amount is 20.4% of the required Ethereum for Phase 0 of ETH2.0 to be launched by December 1st.
The 524,288 ETH requirement needs to be achieved by Monday, 23rd November, for Phase 0 to kick off on the scheduled date. This leaves a window of 4 days (including today) for Ethereum whales to send the required 32 ETH per validator to the deposit contract.
What could happen between now and Sunday, is a rush to deposit ETH to the staking contract which will result in crypto traders longing Ethereum based on the hype surrounding the deposits alone. However, there is also the possibility of the required 524,288 ETH not being achieved by Sunday and thus pushing the Phase 0 launch a few days or weeks forward.