Ethereum is preparing the network for a major upgrade via a planned hard fork. How this can influence the ETH price, considering code changes and the difficulty of staking in 2020? Let’s find out.
Key metrics show the possible huge outbreak in price dynamics in the coming days. Now, the market is in the so-called flat zone: Bitcoin only gained 0,1% in lat 24 hours, while Ethereum got +0,6%. Despite the calm beginning, such silence may promise the storm.
On Twitter, the crypto analyst CryptoHamster writes that the market is full of preparations before the rally. Per his analysis, Bitcoin now trades with a broadening wedge. Bollinger Bands are moving to the bouncing point. Indicators show that the market is ready for an upward trend.
— CryptoHamster (@CryptoHamsterIO) February 23, 2020
Previously, when the Bollinger Bands were as tight as now, the market then performed into price explosion. Bitcoin has gained steam growing fast from $9,700 to $10,300. After that, the unexpected 10% rollback got the traders with pants down.
RookieXBT Says Ethereum (ETH) Price Will Hit the Heights
Per the popular analyst from Twitter, RookieXBT, during the past few days, a falling wedge trend was forming itself. And the Relative Strength Index just made a breakout from that falling index which is a measure of asset’s overbuy and oversell volume.
So he suggests that the price will move upwards during RSI breakout:
THIS IS GETTING INTERESTING https://t.co/ckSjJtSMzZ pic.twitter.com/3pZEVSFueW
— RookieXBT (@RookieXBT) February 23, 2020
During the preparation of this data, Ethereum shows a 4% price action, which means there is still time to jump in. Per the analyst, a hidden bullish ascending triangle has formed a gradual increase in the lows. The top has received a stable resistance as well.
Aayush Jindal Gives Expert Opinion
Per the analyst, Ethereum price is in the struggle to reach the $280 level in a pair vs. the U.S. dollar. The $285 mark seems to be the last Resistance level on a path towards 300. He points out that the Kraken data feed suggests the ascending triangle mentioned above, which has formed support near $266.
While the Ethereum has recovered from a short downside correction, analyst claims it is ready for a bullish trend to start. Substantial supports on the $260 and $266 levels will help this happen. The 100 hourly simple moving average provides data that Ethereum risks to lose more if the price will reach $260 zone. Bearish pressure may follow to dive the price deeper into the $250 bottoms.
Ethereum 2.0 Developing Brilliant Code Solutions
The Ethereum 2.0 deposit contract was successfully verified by the Runtime Verification Inc. The developers have made a cool GUI. People will see it in two weeks during the next Ethereum gathering.
Runtime Verification is a private coding entity that is dedicated to checking the software for bugs. They can analyze, improve and extend given code to empower it. The Deposit Contract is a very important piece of Ethereum’s code. It sets out the mark for a beacon chain and Phase Zero.
Via the contract, people and entities are joining the Ethereum 2.0 network. This is essentially a gateway to validator’s private club, where one validator is expected to have at least 32 ETH to join. Proof of Work blockchain is the one where classic hash power and PoW mining rule. Proof of stake blockchain, in its turn, is the one where the staking rules. In Ethereum, they call it the ‘Beacon chain’.
The function of the contract is to be the bridge between Ethereum 1.0 and the Beacon chain. So, when you send Ethereum to the contract from the old Ethereum 1.0 network, it will freeze the coins on the Proof of Work blockchain. The coins within the Proof of Stake blockchain will be unchained as soon as you deposit the contract. What is bad here, is that you won’t be able to send Ethereum back from Ethereum 2.0 blockchain to Ethereum 1.0 blockchain. Be extremely sure that you understand what this means in terms of irreversibility.
The Ethereum Foundation is working with ConsenSys on the GUI code for the network client. They will showcase it during the Ethereum Community Conference in Paris, March 3-5, 2020. Currently, the contract is not open for payments. According to the Ethereum developer’s earlier claims, the launch date is set on April 2020.
Ethereum 2.0 and ConsenSys Developer Gives Testnet Details
Ben Edgington is from the Ethereum 2.0/ConsenSys team. Ben is rolling out detailed information about the incoming software release. He features a revolutionizing Pryzm testnet, which works with 41,866 validators and grants support for more than 300,000 of system slots.
He claims that the developer team Quilt has a good look into the future of PoS staking. They announced the explanation of Ethereum’s Phase 2 Sharding idea. Buterin’s old idea about Ethereum Operating System lies as the fundament of the sharding principle. Here, all the network shards become united with each other to ensure integrity.
Jeff Fawkes is a seasoned investment professional and a crypto analyst covering the blockchain space. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.