Ethereum price jumps higher today and returns above the rising trendline that started from the March lows. The number two cryptocurrency also managed to return inside the consolidation area that began since early June. So, for now, the support at 230 seems to be a strong base that provides a safe cap for Ethereum.
The upcoming Ethereum 2.0 upgrade to a new proof-of-stake model would boost confidence for Ethereum. One of the main new features is that the new model would allow receiving passive income for the validation of ethereum transactions. The ethereum users will be able to choose between two different options: The first implies depositing 32 ETH and running a validator node software, while the second allows for staking without the deposit by joining third-parties’ pools.
Analysts expect that staking might help stabilize the cryptocurrency prices, as it encourages crypto users to execute market purchases and set limit sell orders. The Ethereum 2.0 update will also reduce costs and speed up network transactions while it is expected the price of gas to drop.
Ethereum price is 4.87% higher at $238.82 cancelling the recent negative momentum that formed below the rising trendline from March lows. The technical outlook for Ethereum is bullish as long as the price trade above the rising trend line, while a break below the 50-day moving average might cancel the bullish momentum.
On the upside, initial resistance stands at $240.00 the daily high. The next resistance will be met at $247.45 the high from June 12. In case the ETHUSD breaks higher, the bulls will be looking for an extension above 251.01 the high from June 11.
On the other hand, the first support for Ethereum stands at 227.31 the daily low. The next level for ETHUSD traders to watch in case of further selling pressure is at 220.57 the 50-day moving average. Bears will take control below the 50-day moving average targeting 717.43 the low from June 15.