- Ethereum 2.0 has generate huge buzz around the project again
- The fundamental and technical aspects of Ethereum are marrying up to put a bumper few weeks firmly in sight
- Ethereum 2.0 delay could temporarily scupper plans
Ethereum has been a hot topic among the cryptocurrency community in recent weeks with Ethereum 2.0 supposedly only weeks away from launch, leading to plenty of people believing that Ethereum is on the verge of 2017-esque gains. But how viable are these claims, and what do we need to look at to determine if Ethereum is indeed on the verge of a bumper or a dumper of a month? Let FullyCrypto be your guide.
Ethereum 2.0 Brings Epic-strength Fundamentals
From a fundamental perspective, Ethereum is looking incredibly strong. Ethereum 2.0, which has been in the works for months, is coming soon, potentially in a matter of weeks, bringing with it substantial changes to the network. Some of the biggest changes include:
- Shift from proof-of-work to proof-of-stake consensus mechanism
- Introduction of validator nodes, allowing passive income
- Massive reduction in ETH issuance
- Faster transaction speeds thanks to sharding
All these fundamental changes equate to not so much as a facelift as an entire skeletal and cranial swapout for Ethereum, making it a much more tempting proposition going forward for developers who have started to see newer, more agile networks come online.
The upgrade will address numerous flaws in the system that started life in 2015 and will bring Ethereum into line with these more modern offerings. Ethereum is heavily testing Ethereum 2.0 at the moment, and while we don’t know exactly when it will launch, the latest estimates are for July, just a few weeks away.
Buying Pressure From Would-be Validators
Given that 32 ETH is the minimum amount required to stake Ethereum independently, it is no coincidence that we have seen the number of wallets holding exactly 32 ETH growing exponentially in recent months.
When a launch date for Ethereum 2.0 is finally announced we can expect this number to increase sharply as people realize that they are running out of time to accumulate the required number of ETH, leading to huge buying pressure.
Ethereum Looks Set for a Bust Out
Looking at the Ethereum price chart, Ethereum is perfectly placed to go on a major run:
As we can see from the ETH price chart, Ethereum broke a two year resistance at the start of the year which gave us the first clue that it was ending its post-2017 bear market downturn. Since then it has been under the thumb of a second trendline which started around the end of 2018:
Ethereum is now testing this 18-month downtrend for the third time this year, and with alts breaking ground left, right and center, it looks like it is only a matter of time before Ethereum can do the same. We may drop down and retest the ₿0.0215 region first, especially if Bitcoin goes on a tear, but the price action so far this year suggests that everything is gearing up for a breakout very soon.
Looking at how the fundamental and technical aspects of Ethereum line up, all the evidence points to Ethereum is looking primed for a bumper few weeks. The narrative around Ethereum 2.0, the buying pressure generated by the requirement for 32 ETH for staking, and the bullish nature of the charts all point in one direction – up.
The only fly in the ointment would be if there were delays in launching Ethereum 2.0, although any resulting dip would only be temporary and would represent a great chance to pick up more staking collateral before the uptrend inevitably resumes.