Ethereum price has been closely tracking BTC over the past several weeks, caused it to see some intense instability
The Ethereum price rose all levels to as high as $ 255 before retracting and entering a period of several weeks consolidation. At this point, you will be asking whether the consolidation will lead to an uptrend movement because there are still some factors suggesting that the bear may be strengthening its control over ETH.
Ethereum price merges with Bitcoin and the aggregate market
According to analyst Josh Olszewicz, after closely monitoring the development of the head and shoulders (H&S) pattern over the past several days, it seems any further weakness could confirm its validity. The chart shows ETH has still yet to post any confirmed break below the pattern’s neckline at $ 232.
Source: Josh Olszewicz
However, there is also a strong possibility that the hype surrounding the upcoming launch of the Ethereum 2.0 testnet will generate some significant hype that will help propel cryptocurrencies higher in the coming months.
While this is certainly not the cleanest H&S model at the moment, it can still prove to be valid if buyers are unable to push crypto higher in the near term.
ETH price action since the 2018 highs looks almost identical to Bitcoin
According to crypto analyst Wolf, Ethereum’s price action since the 2018 highs looks almost identical to Bitcoin’s price action in 2014 and 2015, prior to the explosive rally to $20,000.
He stated:
“If you don’t see an accumulation, we can’t be friends.”
Until now, ETH is up more than 170% from the March lows of ~$88. This is a performance that has allowed it to outperform basically any other asset worth $10 billion or more, even Bitcoin.
The launch of ETH 2.0 is not necessarily a price driver
Any potential technical weaknesses seen by Ethereum at present could be negated by the hype surrounding the impending launch of the ETH 2.0 testnet. It looks like it is expected to happen sometime in the third quarter of this year.
ETH/BTC really coiling for a move leading into 2.0 phase 0 shenanigans
Cloud leans bull (not shown) for first time since mid-2018
golden cross poss soon
0.025 key res, 0.035 target
expect mETHeads to come out of the woodwork soon pic.twitter.com/WhoNvasZ4z
— Josh Olszewicz (@CarpeNoctom) June 7, 2020
Still, according to Josh, he believes that ETH could soon achieve some significant gains compared to his BTC trading pair due to the news surrounding 2.0.
The genesis nodes running on ETH 2.0 will receive generous staking rewards of over 20% annually, but this number will fall towards 6% after 5 million ETH has been staked. These rewards are likely to spark both hype and potential accumulation.
You can also check Ethereum Price here.
Read more:
- Top Analyst Suggests That ETH Price Still Has The Opportunity To See Some Considerable Upside
- Ethereum Wallets With At Least 32 ETH, The Amount Required For ETH 2.0 Staking, Have Grown By 13% This Year