ETH 2.0 transforms Ethereum into the blockchain, but what about ETH the asset and the affected on Ethereum price?

Ethereum price traded to a new annual high of $ 636 before correcting lower. ETH is showing signs of decline and it could plummet if there is a break below $ 570. At press time, ETH is trading around $ 600, down almost 2% over the past 24 hours.

Ethereum price began a downward correction after trading to a new yearly high at $ 636

There is a significant increase in Ethereum above the $ 600 and $ 620 levels. ETH price has even broken the previous highs and traded to new yearly highs at $ 636. The bulls, however, have no strength. strong, resulting in a sharp drop below $ 620.

The price broke the $ 600 support level to move into the short-term bearish zone. The last high near $ 620 before the price dropped towards the support of $ 575. The low is formed near $ 574 and the price is currently consolidating losses.

what-about-eth-the-asset-and-the-affected-on-ethereum-price

There is also a major downtrend line forming with resistance near $ 590 on the hourly chart of ETH/USD. The 50% Fib retracement level of the recent decline from $ 620 high to $ 574 low is located at $ 597. A clear break above trendline resistance and then $ 597 could begin a decent increase. The next major resistance level is near $ 600. A successful close above $ 600 can lead the price to the $ 620 resistance in the near term.

ETH 2.0 transforms Ethereum into the blockchain, but what about ETH the asset?

Elsewhere, ETH price is still affected by the launch of Ethereum 2.0. And at the moment, people are questioning that when Ethereum 2.0 launched, what about ETH as an asset, or not in ETH, 1.x ETH was used as a currency and a commodity. In ETH 2.0, ETH will also be used to generate income through staking. The combination of all 3 will make ETH one of the most unique assets in cryptocurrency.

First, in ETH 1.x, ETH owns a store of valuable properties through its use as collateral in DeFi and used as the native token of the Ethereum Blockchain.

Meanwhile, ETH 2.0 introduces staking that will give ETH capital asset properties – it will be used to generate income through staking. Annual yield planners can expect gains at maturity can be in the 4% – 6% range. Currently, they are around 20%.

Ethereum can guarantee payments to investors as long as the Ethereum Blockchain persists. The reason is that Ethereum pays investors in its own currency. Ethereum’s bond-like characteristics, however, are only half the picture. The two main characteristics that make ETH like equity are its perpetual nature and its requirement for Ethereum transaction fees.

Unlike a bond with a maturity at which point holders are returned their principal, the depositor can stake their ETH and receive the return forever.

Similarly, ETH’s requirement for transaction fees makes ETH behave like equity in that it has future fee requirements from users requesting transactions on Ethereum.

EIP 1559 will likely burn most of the transaction fees, but some of the change fees will be paid to contractors.

ETH is conceptualized into:

“The Internet Bond which is an entirely new asset for financial markets. It allows anyone in the world to invest, participate, and profit off an open-sourced, decentralized digital economy.”

Why are all these attributes important? All of them are sources of demand for ETH in ETH 2.0. It may not be an exaggeration to say that there has never been such an asset as ETH. ETH does not fit into a well-defined pool. It’s what a complete reimagination of money is in a blockchain-based economy. The best way to understand ETH is to simply look at it from its first principles and appreciate its various value dynamics.

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