The reversion of Ethereum for a massive breakout

The reversion of Ethereum for a massive breakout

  • The reversion of Ethereum for a massive breakout. Ethereum price crossed $3,000 as the community prepared for the milestone update, the merge on the ETH mainnet. 
  • As the proof-of-stake transition draws closer, a total of $5 billion Ethereum tokens have been burned. 
  • Analysts believe Ethereum is poised for a 20% upswing, following a bounce in the altcoin’s price. 
  • Ethereum price could post 20% gains in the current uptrend. The community is keen on the arrival of the long-awaited upgrade on the Ethereum mainnet. Analysts have noted a bounce in the Ethereum price trend and predicted a bullish outlook on the altcoin’s price. 
  • Ethereum price ready for 20% upswing ahead of major upgrade

Analysts arguments

  • Ethereum price is set up to break out of a long-term bearish trend line, according to crypto analyst Willy Woo. Woo argues that Ethereum price was on a bearish trend for over three and half months, and the altcoin is on track for a trend reversal. 
  • The merge, considered a milestone event on the Ethereum mainnet, is drawing closer after its arrival on the testnet. There is a spike in Ethereum tokens being burned ahead of the upgrade. Over $5 billion in Ether has been pulled out of circulation through the implementation of the burn. 
  • Previously, the EIP-1559 was considered a key upgrade in the Ethereum ecosystem, as it worked towards introducing predictability and stability in transaction fees. Proponents argue the merge could put deflationary pressure on Ethereum. 
  • As burn reduces the overall supply of Ethereum, it could positively influence the price, fueling a rally in the altcoin. 
  • Analysts have evaluated the Ethereum price trend and predicted a trend reversal in the altcoin. Michaël van de Poppe, a crypto analyst and trader, believes that Ethereum price could hit highs at around $3,000. 
  • FXStreet analysts argue that an Ethereum price close above $3,033 could result in an ideal Ichimoku bullish breakout for the first time since October 2021. Analysts predict a 20% upswing in Ethereum price. 

As per data from CoinMarketCap, cryptocurrencies Bitcoin Cash (BCH) and Ethereum Classic (ETC), are trading higher by 10% and 11.73% in the last 24 hours. The cryptocurrency market is posting a recovery as Bitcoin and altcoins were adding value at press time.

Ethereum Classic (ETC) was created in 2016 as the result of a spinoff or “hard fork” of the original Ethereum network. The Ethereum Foundation is expected to migrate from proof-of-work to proof-of-stake consensus in Q2, 2022, through “The Merge.” Proof-of-work cryptos are highly dependent on mining, while proof-of-stake cryptos are not. This might present an opportunity for ETC, being a proof of work consensus operating a modified version of Ethash called ETChash.

Ethereum’s upcoming Merge event might disenfranchise the largest EVM Proof of Work mining ecosystem, but Ethereum Classic says it is well-positioned to absorb much of this abandoned Ethash hashrate.

In addition, In an official blogpost titled ”Migrating to ETChash Post ETH Merge,” the Ethereum Classic project welcomes “disenfranchised” ETH miners who may lose out on their stream of income when the Merge occurs. The reported success it is seeing in the migration likely contributed to the recent rise.

Per CoinMarketCap data, in the last seven days, ETC is up over 70.89% at a present price of $43.30. The daily transaction volume on the chain is reportedly about 100,000 ETC.

Bitcoin Cash is a Bitcoin spin-off or hard fork that was created in 2017. As covered previously by U.Today, Sint Maarten, a constituent country of the Kingdom of the Netherlands, could make Bitcoin Cash, the most prominent fork of Bitcoin, its legal tender.

Rolando Brison, the head of the United People’s Party, says that he has already started exploring such a bill. As per CoinMarketCap data, in the last seven days, BCH is up over 27.69% at a present price of $362.43.

Ethereum Price Analysis: ETH Rally Stalls, Can It Break Above $3,000?

ETH is still seeking its footing after not being able to break above $3,000 on two occasions in March.

Key Support levels: $2,500, $2,330

Key Resistance levels: $3,000, $3,400

ETH reached $2,987 (Bitstamp) on Friday and was unable to move higher as the key resistance at $3,000 has so far stopped buyers from advancing further. This puts ETH in a large price range between the key resistance and support at $2,500.

Technical Indicators

Trading Volume: The volume continues to decline on an aggregate basis and is making lower highs since the year started. This is a bearish signal.

RSI: The daily RSI has remained around the 50 points mid-area and appears unable to move away from this range.

MACD: The daily MACD is bullish, but in the past few weeks, the price action, as well as the MACD, remained rather flat. This is a lack-of-trend scenario that requires caution.