Traders Eye Continuation For Ethereum Toward $900 After ETH2 Launch
- Ethereum is expected to shoot higher in the weeks ahead despite the recent price consolidation.
- The cryptocurrency has held well in the high-$500s despite some downward pressure in the Bitcoin price.
- Analysts think that ETH could push toward $900 and beyond in the near future, especially due to the positive fundamental event of the ETH2 launch.
- Boosting Ethereum’s prospects, analysts are also bullish on Bitcoin.
Ethereum Could Shoot Even Higher, Leading Analysts Say
Ethereum is expected to shoot higher in the weeks ahead despite the recent price consolidation. The coin has maintained the high-$500s, holding below its year-to-date highs of $620.
One leading crypto-asset analyst thinks that this may be a precursor to a strong upward breakout. He recently shared the chart below, which shows that Ethereum is consolidating above a key support level on its macro chart. This consolidation could be a precursor to a breakout toward $900, the analyst believes.
Boosting Ethereum’s prospects, analysts are also bullish on Bitcoin. BTC is expected to push higher as institutional players continue to embrace this space. This buying pressure from Wall Street will drive Bitcoin toward $100,000, say some investors, such as the CIO of Off the Chain Capital and Preston Pysh, a financial analyst.
Chart of ETH's price action over the past few years with an analysis by crypto trader Cactus (TheCryptoCactus on Twitter). Source: ETHUSD from TradingView.com
Fundamentals Bullish
The expectations of a strong Ethereum rally come as the ETH2 upgrade has finally been rolled out. The first phase of the upgrade launched on December 1st, giving users the ability to stake their coins in exchange for rewards should they maintain their nodes correctly.
Analysts think that this upgrade will result in a decrease in the issuance of Ethereum. This should help to increase prices in the long run, assuming that demand is consistent or grows to meet this shrinking demand.
As Messari analysts wrote about the potential effects of the upgrade on the Ethereum supply:
“Further reducing the potential issuance of ETH 2.0 until Phase 1.5 are the likely shape of the staking adoption curve, validator performance, and transaction fee burns (EIP 1559). Staking participation will likely start low and increase over time as holders gradually become more comfortable with the Beacon Chain and deposit more ETH into the deposit contract. The result of these three factors is that net issuance from ETH 2.0 could be significantly lower than what’s projected on the above chart.”
Analysts are also optimistic that ETH2 will mark a decisive upgrade for the usage of the protocol. This improved user experience could also drive further grow in the Ethereum ecosystem over time.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Macro Analysis Predicts Bitcoin Has Begun Rally Toward $100k
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Nick Chong, @Khareem Sudlow