Price Preview November 9 - 15
ETH dips on the news of a Covid-19 vaccine and Phase 0 deposit rate slows.
Hello Ethereans!
On the news of a Covid-19 vaccine today the price of Ethereum rallied sharply from $452.44 to $458.75 before seeing its gains wiped and more. Gold saw a much more devastating decline with its price dropping over 4% as investors rushed into equities, lifting the S&P 500 to an all time high.
This news, while providing enormous relief for global markets, has clearly not had the effect on crypto that many had expected.
ETH investors are instead turning to the ETH 2 genesis event that is expected to occur on December 1st; anticipating that confidence will surge as Ethereum developers finally execute and deliver on a multi-year promise.
There is, however, some worry.
The genesis event cannot start until 524,288 ETH have been deposited. As it stands, after nearly a week of the deposit contract being live, only 49,540 ETH have been deposited (you can track deposits in the header of https://ethereumprice.org)
There are now concerns circulating on Twitter that Ethereum will fail to reach this target by December 1st. Many argue that the yields available on ETH 2 are not high enough to warrant the 1-way trip, particularly as there are relatively safe 20% yields to be found on ETH 1.
This concern, however, may well be unfounded. Those looking to deposit tens of thousands of ETH into the ETH 2 deposit contract are unlikely to do so immediately. There is no financial advantage to depositing early. In fact, there is only opportunity cost (the cost of earning those 20% yields on ETH 1). So while the current rate of deposits in ETH 2 may seem slow, it is very possible that as the deadline approaches (and the opportunity cost diminishes), the target of 524,288 ETH may be rapidly breached, generating community euphoria in the process and - hopefully - bolstering confidence among investors.
In this preview we look at:
Analysts eye $800 ETH
ETH breaks correlation with BTC
DeFi struggles to break all time high TVL
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