Ethereum price has been relatively boring to watch in the past few day. The currency is trading at $463, where it has been in the past few days. Still, the currency is up by more than 400% since March and analysts believe that the uptrend will continue eventually.
ETH 2.0 is happening on December 1
A key catalyst for Ethereum price is the upcoming ETH 2.0 launch on December 1. For starters, this will be the biggest update to Ethereum network and will shift it from proof of work (POW) to proof of stake (POS). This update will make the network relatively faster and safer to use.
In the past few months, the update has been going through a testnet that is known as Spadina. Before the launch, it will go through another test known as Zinken that is aimed at “giving client teams a chance to iron out issues in their release process.”
Still, some analysts believe that the transition to phase zero of ETH 2.0 will be a bit challenging because of the work that will go into the process. For example, Beacon Chain final version will be ready on November 24, just 6 day to the eventual launch.
Investors believe that Ethereum price will rise before the update as demand rises.
Ethereum price long term chart is bullish
Short-term charts can be deceiving. For example, in June this year, I analysed gold price using a longer-term chart and predicted that the price would surge to more than $2,000. A similar set-up is happening in Ethereum price.
When you look at the weekly chart, you notice several things. First, ETH has been rallying since March this year when it reached a low of $90. A closer look shows that this was slightly above its December 28 low.
Also, we see that the price managed to pull above $363 in August. It has remained closer to this range since then. Again, this price is the highest level since June 19.
Third, we see that the price has managed to find strong support at $309. Finally, it is slightly below the 38.2% Fibonacci retracement level.
All these factors send a signal that Ethereum price is in a bullish trend when you look at a longer chart. For this to happen, it will need to move above the 38.2% retracement. If bulls are able to defend this level, the next point to watch will be the 50% retracement level at $707.
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ETH technical chart
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