Ethereum Price (ETH) is in an Uptrend – Is it Still a Buy?
Ethereum price (ETH) is gaining today, partly helped by the weak US dollar and the ongoing ETH 2.0 update. The digital currency is trading at $354, which is slightly lower than yesterday’s high of $370.
Ethereum enthusiasts are focusing on the launch of Spadina that will happen today. For starters, Spadina is part of the ETH 2.0, the update that started a few months ago. It is simply a phase where developers test the upgrade so far. The testnet will start today and have a 3-day end-of-life. The goal of this process is to ensure that the upgrade will work well when it is fully launched.
If you are unfamiliar with ETH 2.0, it is a simple process in which developers work to update how ETH is got. Today, like Bitcoin, Ethereum is mined through a process that is known as mining or proof-of-work. This process is usually relatively expensive and often inefficient. This is what the upgrade wants to solve. After the new framework, new ETHs will be developed by what is known as proof of stake (PoS).
Ethereum price is also reacting to the overall weaker US dollar today. The dollar index, an important benchmark that measures the strength of the greenback against key currencies, is down by 0.10%. This is its second consecutive day in the red.
Ethereum price technical forecast
The daily chart shows that Ethereum price has been gaining in the past few days. In this period, it has moved from last week’s low of $310 to the current $354. The price has also formed a head and shoulder pattern, with the neckline at about $310. Also, ETH is above the ascending trendline that is shown in pink.
Therefore, I suspect that bulls will remain in control in the near term as they attempt to move above the resistance at $400. This bullish trend will remain so long as the price is above the ascending trendline. However, a decline below the support at $310 will send a signal that there are still bears in the market who will be keen at pushing it below the trendline.