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- Bitcoin (BTC) and Ethereum (ETH) fundamentals with an upward trend indicate an imminent price increase.
- Bitcoin’s mining rewards stand at $20 billion while the network records strong health.
- Bitcoin Jack analysts predict an Ethereum price of $2000 for Q4 2020 or early 2021.
Despite the severe measures that the trading platforms BitMEX and OKEx have faced due to investigations by authorities, the fundamentals of Bitcoin and Ethereum remain strong. Both blockchains are in record moments of activity that indicate an imminent price increase.
Adoption drives Bitcoin price (BTC)
A report from research firm Arcane revealed that there has been a positive change in market sentiment after Bitcoin once again broke through the $11,000 resistance. Two days ago, Arcane recorded a change in the Fear and Greed Index that rose to 50 to place it “outside the fear zone,” as shown in the image below.
This is combined with an increase in the Bitcoin hash rate to an all-time high of 140 exahashes per second (EH/s) at the time of publication. In contrast to the beginning of 2020, the Bitcoin hash rate has increased by 36%, as shown in the image below.
The main reason behind the increase in Bitcoin’s fundamentals seems to be its high adoption levels. Investment announcements from companies like MicroStrategy and Square have had a positive impact. Analyst Chris Russi said that this is evidenced by reviewing the health of the network activity.
The daily number of active Bitcoin addresses are at higher levels than in 2017, when BTC reached its all-time high in price, and stands at one million active addresses per day. In addition, transactions and transfers have been increasing since the beginning of the year. Mining and block rewards stand at $20 billion.
8/ Network Activity is Thriving & Signaling Strong Adoption
-The # of Daily Active Addresses has eclipsed 2017 levels & is routinely >1M / day
-# of trxns & trnsfers has been trending⬆️ since Jan.
-# of New Addresses continues to⬆️
-& # addresses w/ a Non-Zero Balance is at ATHs pic.twitter.com/qV52FZ0gVB— Chris Russi (@chrisrussi) October 13, 2020
Ethereum 2.0 to new ATH price in the short term
In that line of a bullish trend, Ethereum follows with 68% of its investors presenting profits at the current price of ETH ($365), according to Blockchain.com. In one year, ETH has shown an increase of 105.96% and 57.06% in the last three months. The above has been reflected in the increase of Ethereum’s network hash rate, as shown below.
As the image above shows, the Ethereum hash rate is at high levels with a daily average of over 262,450 terahashes per second. The analysis firm Glassnode indicates that the hash rate of the Ethereum network has increased by 80% since the beginning of the year. Unlike Bitcoin, Ethereum seems to have multiple reasons for strengthening its fundamentals.
First, the launch of Ethereum’s 2.0 phase 0 is very close. Analysts such as Adam Cochran have stated that the upgrade will cause an ETH supply shock. In addition, the emergence of the DeFi sector in Ethereum which stands at $11 billion, according to DeFi Pulse. Looking at the fundamentals and health of the Ethereum network, analyst firm Santiment expects Ethereum to head into its sixth consecutive month of “bullish divergence,” as shown below.
In that sense, trader Bitcoin Jack has predicted a new all-time high for Ethereum’s price. Via his Twitter account, the trader stated that the cryptocurrency could approach $2000 by the end of this year or early 2021 as two “not impossible” possibilities.
Ethereum new ATH is programmed
Q4 or early next year is not impossible pic.twitter.com/8v0MD68eBd
— //Bitcoin 𝕵ack 🐐 (@BTC_JackSparrow) October 11, 2020
