Ethereum Price May Gain 40% On Bitcoin, Analyst Says As London Fork Approaches

[ad_1]

Ether (ETH) could rise nearly 40% against Bitcoin in the next few trading sessions, analyst says.

That’s what Michal van de Poppe, an Amsterdam-based market analyst, thinks, predicting that the ETH / BTC exchange rate would drop from its current range of 0.05 to 0.06 sat to 0.07 sat. soon.

The technical chartist based his bullish analogy on the pair’s support level at 0.063 sat. The floor price was instrumental in maintaining ETH / BTC’s bullish bias during the notorious crypto market crash in mid-May 2021. It also served as a strong support during the bullish trend of the market. pair during the early May 2020 trading session.

“Ethereum is continuing the race against Bitcoinpair,” Van de Poppe said.

“A nice reversal of the regions of 0.063 and creeping up at this point. As long as 0.063 holds, I would expect a continuation of 0.075.” Ethereum trade setup presented by Michal van de Poppe. Source: TradingView.comWhat the Fork

The bullish analogy appeared just as ETH / BTC stretched its price rebound, from its June 27 low of 0.0552 sat, 21.28%. This has shown that more and more traders prefer to sell their Bitcoin holdings to seek opportunities in the Ethereum market in recent days. Since the start of the year, the second largest cryptocurrency had already jumped over 160% against Bitcoin.

The transition was inspired by the euphoria surrounding the transition of Ethereum’s consensus layer from its previous power-hungry proof of work to a more scalable and cheaper proof of stake. The project launched the first phase, called Phase 0 or Beacon Chain, in December 2020. It introduced a so-called partitioned network architecture in the Ethereum blockchain.

Partitioning is a scaling technique that segments the Ethereum network into various groups (called fragments). It then assigns nodes to each partition. These nodes must monitor and validate their respective shards, eliminating the need for each node to commit every transaction, which is the case in the current proof of work consensus.

The #ethereum London hard fork consists of 5 EIPs: 1.EIP-1559: Changed fee market for the $ 1.0 chain ETH2.EIP-3554: Difficulty bomb delay until December 20213.EIP -3529: Reduction of refunds 4.EIP-3541: Rejection of new contracts starting with 0xEF byte5.EIP-3198: BASEFEE opcode

Young and investor (@QuintenFrancois) June 27, 2021

The next phase that brings Ethereum closer to proof of stake is EIP-1559, also known as the London hard fork. The upgrade proposes to replace Ethereum’s “first-price auction” fee model with a core network fee, which can be changed based on network demand. He hopes to solve the problem of gas and higher blockchain transaction fees. It also aims to make ETH a deflationary token by burning core network fees.

Therefore…

Due to the looming shortage, analysts and traders see huge upside potential in the Ethereum market. The bullish formula is simple: The supply of circulating drying ether against increasing demand would make it more valuable than it currently is. And as a result, cryptocurrency has risen relative to Bitcoin until 2021.

Additionally, CryptoQuant, a South Korea-based crypto analysis company, has reported increasing holding behavior among ether traders, drawing inspiration from their declining ETH reserves on all crypto exchanges. -change.

The prices of ether generally move in reverse of its reserves on cryptocurrency exchanges. Source: CryptoQuant

The amount of ETH held in portfolios across all exchanges hit a 2.5-year low on Monday.

The reduction of Ether on exchanges is clearly a positive indication that boosts investor confidence in the future of blockchain, explained Yuriy Mazur, head of the data analysis department at CEX.IO Broker.

The executive added that investors were taking other means to secure their ETH holdings during its price correction instead of throwing it away for money. He cited ETH-based investments in the decentralized finance sector as the best example.

“The total value of Locked-in Ethereum has skyrocketed over the past year. Staking in the upcoming Ethereum 2.0 (Proof of Stake Consensus Model) has also absorbed trading venues leaving Ethereum. “said Mazur, adding that:

“The depletion of the ether on trade will contribute to a scarcity of circulation which can have a positive impact on prices.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.

[ad_2]