Ethereum » ETH 2.0 upgrade could bring price down to $1000 USD

It appears that the price of the Ethereum cryptocurrency is set for a significant rally as the highly anticipated ETH 2.0 upgrade is expected to launch in less than two weeks.

  • The Ethereum cryptocurrency price is gearing up to move further as the fundamentals behind it have yet to be realized.
  • Technicals also support a long-term bullish outlook.
  • During this time, the network experienced a spike in activity, as evidenced by rising gas prices.

ETH 2.0 boosts bullish outlook for Ethereum price

Scalability has been one of the major drawbacks inhibiting the Ethereum network, hence the need to introduce features to address these challenges.

Serenity is the last step to increase the user-friendliness of the network and allow it to become “the computer of the world” as its founder Vitalik Buterin envisions. This protocol upgrade will incorporate proof of stake and other features that will improve the speed of the blockchain while maintaining its security.

Another important feature is sharding, which according to blockchain service provider Consensys will dramatically increase the throughput the Ethereum network can process.

“Chunked chains are a scalability mechanism in which the Ethereum blockchain is “split” into 64 different chains, allowing parallel transaction, storage and processing of information. At its most conservative estimate, it will allow 64 times the throughput of Ethereum 1.0, but it is designed to be able to handle several hundred times more data than Ethereum 1.0.

Ethereum 2.0 by Hsiao-Wei Wang

As Ethereum moves away from proof-of-work and enters a new era of proof-of-stake, market participants will need to hold 32 ETH to collect staking rewards. This factor can trigger a spike in demand for the smart contracts token, subsequently affecting the price action of the ETH cryptocurrency.

A new progression on the horizon

The weekly chart of the Ethereum cryptocurrency shows that its price action has developed a double-bottom chart pattern over the past two years. Following the recent breakout of the 78.6% Fibonacci retracement level, it seems that the price of the cryptocurrency Ethereum could surge towards the 23.6% Fibonacci retracement level at $1100 USD.

But first, one would have to cut through three more resistance barriers represented by the 61.8%, 50%, and 38.2% Fibonacci retracement levels. These hurdles are located at $600, $750 and $900 USD respectively.

Ethereum (ETH/USD) Weekly Chart

ethereum eth/usd crypto 21112020

Buyers of the Ethereum cryptocurrency do not seem to be showing any signs of fatigue. If buying pressure continues to build at the current rate, the smart contract token could be on the verge of reaching new all-time highs within the next year.

It is worth mentioning that the cryptocurrency community is increasingly concerned about whether the Ethereum Foundation will be able to reach the 524,000 ETH threshold required to launch ETH 2.0 on the mainnet. Failure to do so could have serious consequences for the price of Ethereum, as it could invalidate the bullish outlook.

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Disclaimer: The information and opinions contained in this report are provided for general information only and do not constitute an offer or a solicitation to buy or sell foreign exchange contracts or CFDs. Although the information contained herein is from sources believed to be reliable, the author does not warrant its accuracy or completeness, and assumes no responsibility for any direct, indirect or consequential damages that may result from anyone relies on such information.

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