The cost of purchasing one Ethereum token has just surged to a two-year high in the days before the transformation to a proof of stake asset so let’s read more in today’s Ethereum price news.
The ETH/USD exchange rate hit $600 on Monday after a 6.21 percent increase which is the highest level recorded since May 2018. Traders increased their bullish bets on the pair since they were all waiting for a supply deficit on the Ethereum market. looking back at it, Ethereum expects to see a huge upgrade to the network under the name ETH 2.0 and this upgrade will increase the blockchain scalability, energy efficiency, and security without having to compromise the decentralization.
The closer we get to 100% of 524K threshold, the higher the price of $ETH… pic.twitter.com/NO3uCVLoJU
— SpartanBlack (@SpartanBlack_1) November 23, 2020
In the meantime, ETH 2.0 proposes to change ETH as an asset which will attract three subdivision attributes to the token like Commodities, Capital Assets, and Stores of Value. The Eth Foundation required the ETH users to stake their holdings into a smart contact so they will be able to activate the mainnet of ETH 2.0. The contract requires 524,288 ETH tokens and in return, it could provide stakers with an attractive annual return.
However, as of today, the cost of purchasing one ETH hit a 2-year high and the ETH 2.0 smart contract collected about 50 percent from its targeted amount. If it manages to obtain the 524,288 ETH by today, the team will launch 2.0 on December 1. If they don’t collect the required number of ETH tokens they will delay the launch until further notice. Escalating the ETH deposits will remove a chunk of the tokens out of circulation and the deficiency along with the rewards will boost more holders to deposit their holdings into the ETH 2.0 smart contract which explains why ETH/USD is rallying upwards. One member of the Spartan Group explained:
“A steadily rising ratio signals the community’s confidence in ETH 2.0 and the fact that people are willing to forego higher yields elsewhere to bet on the future of Ethereum.”
ETH is now looking at a resistance-free zone as it eyes for another extension thanks to the upside momentum. The trade setup against some of the fundamentals looks like this: ETH trades upwards inside the Rising wedge pattern, it then pulls back while testing the upper trendline and it bounces back to the upper trendline on testing the lower one as support. The uptrend will continue until ETH/USD tests the Wedge apex where both of these trendlines will converge. The level is set at $832. After that, ETH/USD pair will break out of the downside falling by about the height of the wedge which is $156.
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