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Ethereum Is Cleared to Nearly Double In the Months Ahead: Analysts

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  • Ethereum has seen a strong bounce since the September lows near $310.
  • The coin now trades for $455, though peaked at $465 a few days ago.
  • Technical trends show that the cryptocurrency will likely continue its ascent in the months ahead.
  • Analysts are specifically eyeing a move toward $800, as that’s where macro resistance lies.

Ethereum Technical Trends Suggest Growth Toward $800 Possible

Ethereum has seen a strong bounce since the September lows near $310. The price of the leading cryptocurrency recently peaked near $465, surging as a risk appetite has returned to global markets.

Technical trends show that the cryptocurrency will likely continue its ascent in the months ahead. This comes in spite of widespread sentiment that ETH may be left on the sidelines as Bitcoin is expected to rocket to all-time highs. The sentiment goes that because the cryptocurrency turned the $400 region into support, it will act as a springboard to $800.

Ethereum investors have long seen the $400 region as one of importance. It acted as a springboard during a rally in late 2017 and marked the highs in medium-term rallies over the past two years.

An analyst recently noted that Ethereum’s long-term trend remains positive for the cryptocurrency. Referencing the macro chart for ETH, he added that traders should have exposure to the asset:

“In a vacuum, $ETH is face meltingly primed for markup. In our world, it has the unfortunate mandate to be priced relative to bitcoin. Or, you can find derivatives that enable exposure to both. Either way, I need exposure to this.”

Analysts are specifically eyeing a move toward $800.

The chart below was shared with the following comment. The chart shows that Ethereum has little macro resistance until $800-900. That region is the point at which a relief rally in early 2018 topped:

“Stop charting ETH against BTC it under performs USD. HTF trend is heavily bullish going into 2021, I really hope we get the chance to buy around $350 again at some point before we really start to see price clear $600 and $800… I have a large USD position to spend.”

Chart of ETH's price action over the past three years with analysis by crypto trader Cactus (@Thecryptocactus on Twitter).
Source; ETHUSD from TradingView.com

ETH2 Set to Drive Prices Higher

ETh2 is expected to drive Ethereum higher. ETH2 is the long-awaited upgrade that will give Ethereum a Proof of Stake consensus mechanism, allowing ETH holders to earn regular yields on their holdings.

Analysts think that ETH2 launching this year will spark an influx of accumulation of Ethereum.

Some specifically think that it will drive Ethereum to new all-time highs in the coming years, especially as ETH2 is fully rolled out.

Featured Image from Shutterstock
Price tags: ethusd, ethbtc
Charts from TradingView.com
Ethereum Is Cleared to Nearly Double In the Months Ahead: Analysts



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Ethereum

Ethereum London upgrade launches on testnet as 100K staked in a day on Eth2

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Ethereum’s forthcoming London upgrade, containing the highly-anticipated Ethereum Improvement Proposal (EIP) 1559, has been deployed on the Ropsten testnet.

Following the June 24 launch on Ropsten, London is now expected to progress through Ethereum’s Goerli, Rinkeby, and Kovan testnets at roughly weekly intervals — from which point the Ethereum community expects a date for mainnet deployment to firm up.

The new upgrade will see transaction fees burned. According EIP-1559 tracking website, Watch the Burn, roughly 88,500 testnet ETH nominally worth $177.6 million has been burned on Ropsten over the day since London’s deployment.

The high rate of Ether being burned on Ropsten has reignited discussion regarding whether EIP-1559 will render Ethereum deflationary — where more ETH is destroyed than new supply enters into circulation — and what this could mean for Ethereum’s price moving forward.

However, EIP-1559 is not the only upgrade that the community is looking forward to from London, with David Mihal of CryptoFees describing EIP-3074 as “fixing one of Ethereum’s most overlooked security issues” to do with approvals.

Related: A London tour guide: What the EIP-1559 hard fork promises for Ethereum

Coincidentally or not, crypto data aggregator, CryptoQuant, identified that 100,000 Ether had been deposited into Eth2’s staking contract around the same time as the launch, worth roughly $200 million.

CryptoQuant also noted that more than 5% of ETH’s supply is currently locked in staking worth approximately $11.75 billion.