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Analysts Still Expect Ethereum Rally to $500 Despite $40 Flash Drop

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  • Analysts think that Ethereum is primed to press higher despite last night’s $40 drop.
  • One analyst noted that Ethereum remains in an extremely advantageous position on a macro time frame.
  • He shared a chart showing that ETH is currently sitting above macro supports, meaning it has room to stretch toward $800 and beyond as it continues to hold those technical levels.

Ethereum Could Move Toward $500

Analysts think that Ethereum is primed to press higher despite last night’s $40 drop, which took place in the span of two minutes.

One crypto-asset trader noted that even after the drop yesterday, Ethereum remains in an extremely advantageous position on a macro time frame. As the chart shows, ETH is currently sitting above macro supports, meaning it has room to stretch toward $800 and beyond as it continues to hold those technical levels.

“Has not even started its parabolic run like BTC yet, still huge room for upside over the coming few weeks, also major macro support is just below just limits downside risk. Still incredibly bullish across all timeframes.”

 

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

Another analyst, one that predicted Bitcoin would hit the $3,000s in 2020 months before it did, also recently shared a chart indicating Ethereum will move higher.

The chart suggests that ETH will soon retest its year-to-date highs at $485-495.

Image

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

ETH2 Update

Boosting the expectations of a further ETH rally is the expectation that soon enough, Ethereum 2.0 will launch. ETH2 is a fully-fledged upgrade that will overhaul how the blockchain operates to increase transaction efficiency and reduce transaction costs while reducing the energy usage of the blockchain.

Ethereum Foundation researcher Danny Ryan recently commented on the concerns that the ETH2 deposit contract won’t get enough in deposits prior to the launch:

“I personally think that for initial launch, the 100k+ ETH in the contract is sufficient, and that adjusting the threshold down to not leave that ETH in limbo for too long makes sense. Rewards will be very high for these early adopters and the ETH validating will likely grow over time. Planning on adjusting this constant immediately at November 24 or December 1 is a bit aggressive, imo. We don’t know exactly what will happen in the next couple of weeks so we should observe first. On that linked to thread, clients engineering teams seem to want to wait through December, and adjust the constant at the start of January if needbe. This seems reasonable.”

Ethereum could see further gains as ETH is accumulated to be deposited into the ETH2 contract.

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from ethusd, ethbtc
Analysts Still Expect Ethereum Rally to $500 Despite $40 Flash Drop





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Ethereum

Ethereum 2.0 still has a long road ahead, MEW founder says

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Ethereum 2.0 launched its Beacon Chain on Tuesday, marking the project’s transition to a proof-of-stake, or PoS, mining algorithm. With Phase 0 now in the rearview mirror, the founder and CEO of MyEtherWallet, Kosala Hemachandra, recently explained the next hurdle for Eth2. 

“I think the question should be, what is not the next hurdle for ETH 2.0,” Hemachandra told Cointelegraph, adding:

“Basically, after the beacon chain launch, Ethereum will focus on phase 1 specs. It will go through a lot of iterations similar to phase 0 and tons of bug fixes. It is hard to define a specific issue as the next hurdle since there will be a lot.”

Aimed at scaling the Ethereum network, Eth2 results from years of work and numerous delays. Most recently, facing a Nov. 24 deadline, validators deposited enough total Ether (ETH) coins to enable Tuesday’s Beacon Chain launch, thanks to several last-minute transfers. Phase 1 comes next in Ethereum 2.0’s progression, which Hemachandra believes may not finish until the end of next year.

“With what I’ve seen in the past, I believe ETH 1 will take approximately 1 yr, then 1.5 should take another 6 months,” Hemachandra said. “Phase 2 might take at least 1.5 yrs.”

Hitting the Nov. 24 deadline means validators locked up at least 524,288 ETH total across the board. Since then, that number has grown to more than 900,129 ETH. With the asset trading around $600 at the time of publication, 900,129 ETH totals roughly $540 million.

Given that ETH is a tradable asset involved in the whole ordeal, one might wonder how its price plays into the progression of Eth2. “One thing I like about Etereum developers is the fact that they don’t depend on the price of ETH,” he said, adding:

“Everyone I know is equally motivated towards accomplishing and advancing ETH2 to the next phase. ETH price went through various phases with ups and downs; however, Ethereum development has always been very consistent. I believe it will continue to be like that, and ETH price won’t play any role in the development of Ethereum 2.0.”

In line with Eth2’s transition to PoS, Coinbase recently announced its plan to launch Ethereum 2.0 staking sometime next year.