3 Signs That Suggest Upward Movement of Ethereum
It was back in June 2022 when the trading price of Ethereum (ETH) experienced the worst plunge of the year. Its value ended up touching the 12-month low when its price landed at $885 in the month of June.
Ether’s Push after the Bottoming Out
After having bottomed out, the trading value of Ether experienced a rebound. This helped the trading price of Ether to cross the $1,000 mark once again.
The data shows that since the bottoming out, the trading price of Ether has more than doubled. As per the analysts, this is not the current high price the investors and analysts are expecting for Ether.
The analysts are hoping that they will see the trading price of ETH rise to $2,500. It is to be kept in mind that the rise being expected by the investors/analysts is not just a blind one.
Instead, the benchmark set for $2,500, is based on fundamental and technical indicators.
Chain Split Would Result in More Tokens
The first factor is the implementation of Merge which is highly anticipated throughout the crypto-verse. Although the mainnet for the Merge is to take place in September, still, it has filled the Ethereum community with a lot of excitement.
People have been accumulating Ether and other cryptocurrencies channeling through the Ethereum blockchain, which would increase their trading prices.
It is already working as a strong positive factor in boosting the trading price of Ethereum. With the implementation of the Merge, the PoW consensus of the Ethereum blockchain would change to PoS consensus protocol.
With the implementation of the PoS consensus, the PoW consensus is obsolete, suggesting that mining would not help and will be shifted to validation. However, the mining companies from around the world, especially from China are resisting the move, and want to keep it intact alongside PoS.
If Ethereum decides to go for a chain split instead of a complete shift, more coins will be added to the Ethereum network, increasing its traction.
Bulls are Feeling Strong
For days, Ether has successfully sustained the bears’ selling pressure, keeping ETH hovering between the ranges $1,625 and $1,975.
The particular range is the resistance level for ETH, and if ETH is able to sustain the pressure, then its price may rise significantly.
If the bulls keep sustaining the pressure, soon, the particular range may become the support level. Going forward, the price of ETH may grow over $2,000 and then rise to 50-week EMA, which is $2,340.
As the momentum keeps rising, the trading price of ETH may grow up to $2,500.
Institutional Investors are Joining In
As ETH’s trading price keeps rising, institutional investors such as investment funds based on Ethereum are gaining momentum.
As more institutional investors keep joining the crew, the trading price of ETH may continue rising. This would help the trading price of ETH to grow all the way up to $2,500.