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3 Trends Show Ethereum Is On Track For Strong Growth in 2021

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  • Ethereum has undergone a strong drop from its year-to-date highs at $490.
  • The coin currently trades for $375, around 25% below those highs.
  • At the worst of the correction last month, the coin was down even further.
  • Ethereum remains bullish on a long-term basis as long-term trends favor bulls, analysts say.
  • One trader recently shared a chart indicating that both the technicals and fundamentals favor bulls.

Three Ethereum Trends Suggest the Coin Is Primed to See Rapid Growth

Ethereum remains in a bullish state from a macro perspective after a strong 25% correction from the year-to-date highs, analysts say.

One analyst, the head of technical analysis at Blockfyre, recently shared the chart below. It shows that the cryptocurrency has recently formed two bullish macro technical signs: ETH has broken out of a 715-day range while it is forming a series of higher highs and higher lows, suggesting the formation of an uptrend.

Not to mention, Ethereum’s 2.0 upgrade is slated to begin in the near future with the rolling out of phase zero. This may drive capital into ETH as investors seek to capture the yield offered in the coin.

“$ETH Notes on Chart: 2.0 Coming, HH + HL on top of 715 day range, break PoB to ATH’s. You’re bearish? Buy + Hold + Wealth Drop the LTF bias.” 

Chart of ETH's price action over the past three years with analysis by crypto trader and head of TA at BLockfyre Pentoshi.
Source: ETHUSD from TradingView.com

Competition Abound?

While Ethereum may be strong in its own right, the coin may face competition from other blockchains that could suppress ETH upside.

According to a Bloomberg article released on Oct. 17, Polkadot is an Ethereum blockchain killer. It is a recently-launched blockchain network that uses a network of sidechains that are customizable by developers to facilitate a much better user experience than its predecessor.

Outlier Ventures reported that the number of Polkadot developments has begun to increase, boding well for the network.

“While developer interest in Bitcoin and Ethereum has declined, the number of monthly active developers building on Polkadot increased by 44% in the 12 months ended in May, the report found.”

It is currently unclear how much of an effect a rising Polkadot will have on ETH. But it’s worth noting that Ethereum has faced some setbacks over recent months as the cost of transactions has increased rapidly and as the high block times have begun to limit some development.

Photo by Florian Olivo on Unsplash
Price tags: ethusd, ethbtc
Charts from TradingView.com
3 Technical Trends Show Ethereum Is On Track For Strong Growth in 2021





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Ethereum

Analysts Think Ethereum Will Surge as Bitcoin Holds $13,000 Support

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  • Ethereum has undergone a strong 10-15% rally over the past seven days that has brought it as high as $420.
  • The coin is expected to move towards $433 to “catch up” to Bitcoin.

Ethereum Expected to Surge As Bitcoin Holds Key Supports

Ethereum has undergone a strong 10-15% rally over the past seven days that has brought it as high as $420. The coin currently trades for $412 as it positions to move higher.

The strength in the price of ETH comes as Bitcoin has held the $13,000 support, which many feared would mark the top of the rally. Bitcoin currently trades for $13,150.

With BTC holding above $13,000, ETH is expected to move towards $433 to “catch up” to Bitcoin.

One analyst shared the chart below, showing that ETH will likely move to $433 before the weekend finishes, then continue towards the yearly highs at $490 by the end of the month.

Chart of ETH's price action over the past few weeks with an analysis by crypto trader Steve (@Thetradingtramp on Twitter). 
Source: ETHUSD from TradingView.com

Other analysts agree with this sentiment. One crypto-asset trader shared the chart below, showing that Ethereum’s recent price action has allowed it to flip the $407 horizontal into support. This suggests that it will push towards the next important horizontal level at $445 in the days ahead.

Image

 

Chart of ETH's price action over the past few weeks with an analysis by crypto trader Nekoz (@CryptoNekoz on Twitter).  
Source: ETHUSD from TradingView.com

Ethereum Has Strong On-Chain Trends

Ethereum has decent on-chain trends that suggest the uptrend will persist in the days ahead.

Santiment, a blockchain analytics firm, shared the chart below just recently with the following comment:

“There is good news and bad news for #Ethereum’s quest to again surpass the $420 price barrier. The good news is that miners aren’t selling, and there is a big increase in new $ETH addresses being created, and pre-existing addresses have shown an increase in activity. The bad news is that social sentiment is bordering on euphoric territory, and daily active deposits have jumped in a big way.”

Ethereum

Chart of ETH's price action over the past few months with an overlay of miner balances. Chart from Santiment

As the company notes, there are a few reasons to be concerned, namely around Ethereum social sentiment and the number of daily active deposits to exchanges.

Bitcoin rallying higher would likely be enough to drive ETH higher in the days ahead, though.

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Price tags: ethusd, ethbtc, ethusdt, btcusd, btcusdt, xbtusd
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Analysts Think Ethereum Will Surge as Bitcoin Holds $13,000 Support





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Ethereum Could Break Dramatically Higher Once It Holds $500

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Ethereum has undergone a strong surge over recent days that has brought it from the $360 range to highs of $420. Analysts say that it will undergo a macro move higher once it manages to flip $500 into support.

Ethereum Set to Break Dramatically Higher Once It Holds $500: Analyst

The cryptocurrency is currently positioning to move higher as it holds the $390-400 region.

As reported by Bitcoinist previously, analysts say that if the coin manages to flip $420 into support, it is likely to move to $500. One crypto-asset analyst commented on the matter:

“Nice break above the $395 flat top on $ETH. ETH doesn’t always give throwbacks, so a $395 throwback is certainly possible before higher, but I wouldn’t be on it. Otherwise, this looks good for a run back near the $490 highs.”

Should ETH flip $500 into support, analysts say it will be cleared to explode higher.

The chart below was shared on October 23rd. It suggests that should Ethereum manage to flip $500 into support, it will begin a rally to four digits on a macro basis. $500 is important because it is just shy of where the market topped during August’s rally. Above $500, there is also little historical price action, indicating that the coin could enter “price discovery.”

Commenting on the significance of the chart, the trader who made the chart wrote:

“Happy playing this relatively large range until I’m ready for a full swing. I’d want to see the mid point of this pivot zone acting as support to take it.”

Chart of ETH's price action over the past few years with an analysis by crypto trader CJ (@irncrypt on Twitter).
Source: ETHUSD from TradingView.com

Fundamental Setback Regarding ETH2 

Ethereum is facing a setback though as reports indicate that the ETH2 upgrade may be pushed back.

In a comment first obtained by CoinDesk, Ethereum Foundation researcher Danny Ryan said that the deposit contract for the upgrade will not go live until an audit is completed:

“This library is critical to creating keys, signing messages. Critical, in early phases, [means] that if you use this library, they need to be secure; if you use it to generate your wallets, it needs to have good randomness; and if you are signing your deposits which have a signature associated, it needs to be correct,” Ryan said. “Given that how critical this library is, and given that, if there is a fundamental error in this library we could f*ck some sh*t up in terms of genesis deposits, that is the blocker.”

This audit could result in a delay until November, Ryan suggested.

Another Ethereum developer working on the upgrade said that once the deposit contract is released, there will likely be a 6-8 week gap between the release and ETH2 deployment.

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Price tags: ethusd, ethbtc
Charts from TradingView.com
Ethereum Could Break Dramatically Higher Once It Holds $500





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Anonymous devs behind a DeFi yield farm could steal $1B in 12 hours

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Harvest Finance, a decentralized finance project that succeeded in attracting over $1 billion in funds locked has an admin key that gives its holders the ability to mint tokens at will and steal users’ funds.

As noted by auditing companies PeckShield and Haechi, the governance parameters are not set by a contract with clearly defined rules. An admin key, presumably held by the anonymous developers behind the project, could be used to arbitrarily mint new FARM tokens.

This power could allow the governance key holders to create an unlimited number of tokens and drain funds in the token’s Uniswap pool, which currently holds $12 million in USDC.

Harvest Finance is an automated yield management system, featuring vault-based strategies similar to Yearn Finance. Haechi highlighted that in addition to the minting mechanics, the governance key holder has the ability to change the vault functionality at will, which could be exploited by submitting a bogus strategy that simply sends the funds to an attacker-controlled address.

The holders of the governance key would thus have the theoretical possibility of stealing all of the $1.05 billion in assets committed to the protocol, in addition to the funds in the Uniswap pool.

Source: DeFi Pulse

In response to the audits, the team introduced a 12 hour time lock that should give enough advanced warning to users if any foul play is detected — but that requires constant community vigilance.

The project is currently running a classical yield farm similar to many of the “food coins.” Users can commit Ether (ETH), Wrapped Bitcoin (BTC) and other assets, but the highest FARM yield can be found by submitting FARM tokens themselves, without necessarily requiring the additional layer of abstraction of Uniswap pool tokens. Such a circular dependency is characteristic of many crypto Ponzi schemes.

The team is completely anonymous, though the project succeeded in attracting a relatively sizable community and has been involved in the community by doling out grants.

While nothing would suggest malicious intentions for now, the project is strongly centralized and prospective farmers should be aware that they are trusting an anonymous group of developers to resist the temptation to run off with their money, similarly to how the community initially trusted SushiSwap’s founder.



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