The future of the second largest cryptocurrency is hampered by the recovery of the US dollar index. On Thursday, the price of Ethereum (ETH) showed a slight decrease.
On July 21, price action in the cryptocurrency market as a whole was mostly muted as it took traders a day to digest recent gains and lock in profits after the strongest bounce since early June.
Ethereum Merge remains at the top of the list despite rumors about what caused the recent surge. After the tentative date of September 19 was chosen for the mainnet merger, market growth accelerated.
Ether (ETH), which peaked at $1,620 on July 20, retraced to a low of $1,463 in the early hours of trading on July 21, according to TradingView data, and has since recovered above the $1,500 support, according to TradingView data.
ethereETH/USD back around $1,500. Source: TradingView
After the initial price spike driven by the merger news, here’s what various analysts believe will happen as the Ether mainnet transition to Proof-of-Stake approaches.
Market analyst Rekt Capital released the following chart showing the value of Ether’s weekly close above $1,300 and the subsequent rise above, calling the July 21 retreat a good thing.
Rekt Captial said:
“While #ETH may just continue rising to reach the upper orange area, it would be more beneficial for ETH to fall. Such retesting of the lower orange area will only increase the likelihood of a continuation.”
Given this forecast, a pullback on July 21 raises the possibility of an early rally to $1,700.
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Vitalik hints at the future of ETH
Ethereum co-founder detailed his future plans Thursday at the Ethereum community conference in France, which go far beyond the network’s transition to proof of stake. Often referred to as a “merger” as it integrates the Ethereum mainnet with the Proof-of-Stake beacon chain, the update is actually the first in a series of planned changes.
Ethereum will then go through additional improvements that Buterin calls “splash”, “edge”, “cleanup” and “bust” after the merger, which he believes is very close because “the only thing left to do is to do the merger on Ropsten [test network]”, he said during the conference. Buterin mentioned the goal of strengthening the Ethereum network, which is the reason for the network’s constant updates.
Ethereum will be about 55% ready after the integration, which is expected to be completed in September this year.
The surge is due to the addition of Ethereum sharding, a scaling solution that, according to ethereum foundation, will make layer 2 blockchains even more accessible, reduce the cost of rollups or pooled transactions, and make it easier for users to run nodes that secure the Ethereum network. Buterin added that after the surge
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Featured image from Shutterstock, chart from TradingView.com
Credit : www.newsbtc.com