Victor Ugochukwu · Dec 14, 2020 . 5min read
Ethereum price inches closer to $500 as ETH 2.0 launches
Ethereum continues its bullish tendencies as it trades at $470. Analysts predict that its strong resistance target at $490, owing to ETH 2.0 launch
By Komal Joshi · Nov 10, 2020 . 6min read
Ethereum price has been trending in an up motion in the past 24-hours. Ethereum climbed from a low of $380 to a crack above $400. It surged as high as $470 yesterday. Following its underperformance against bitcoin in October, the possibility of a new ETH rally is starting to develop.
Analysts state that they are two significant reasons behind the uptrend in Ethereum’s price. They say that the primary reason is the outflow of capital from the bitcoin market to ethereum following ETH 2.0’s launch. Another reason would be ethereum recently trialled a critical resistance level. Thus, increasing the probability of a broader rally.
Ethereum trades in a rising wedge pattern
Currently, ether is trading inside a rising wedge pattern. For the uninformed, a rising wedge is a technical indicator. It implies a repudiation pattern often seen in bear markets. However, the bulls tried to push the price above the wedge, though failed to sustain the higher levels. Nevertheless, bulls are recently trying to resume the move. The upsloping 20-day EMA ($405) and the RSI above 66 implies that the bulls have the upper hand.
Provided they can drive and stop the price over the resistance line of the wedge; it will nullify the bearish pattern. The traders may strive to delay the rally at $488.134. However, if the bulls can drive the ETH/USD pair over this resistance, a rally to $520 and then to $550 is possible. Additionally, a break beneath the wedge may shift in favour of the bears.
However, the 4-hour chart exhibits that the bulls have retained the 20-EMA. This is an optimistic move. This notes that the view is bullish and, the buyers are concentrating on solutions to secure support levels. Provided the bulls can push the price above $455, the pair will then attempt to continue the uptrend by defeating above $468. This bullish view will be cancelled if the pair rolls down from the current levels and plunges below $424.
ETH 2.0 launch may increase prices
ETH 2.0 will possibly launch on Dec. 1. Some critics consider that this could result in a supply shortage. Following the ETH 2.0 staking system, users can stake 32 ETH and can get a 15% incentive on their holdings. The process of staking involves allocating ETH to the ETH 2.0 contract addresses. Throughout staking, users cannot utilize or transfer their ETH except they wish to stop staking. If the demand for staking increases, it can produce a stable yield with comparatively low risk, it would make the circulating supply of ETH decline, especially on exchanges. This could generate a higher demand and result in Ether price existing above the $490.
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