Ethereum price (ETHUSD) is bouncing back as the focus among market participants shift to ETH.20 as the hype of Bitcoin halving disappears. The currency is up by about 2 per cent today and is well above the important $200 mark.
What is ETH 2.0?
One reason why Ethereum price (ETHUSD) has been rising recently is because of the hype about ETH 2.0. It has also been rallying because of the hype surrounding Bitcoin halving, which reduces the supply of blocks awarded to miners.
ETH 2.0, also known as Serenity or Sharding, is an ongoing process that is aimed at upgrading the Ethereum platform to make it better and faster. By creating a faster and efficient platform, analysts believe that ETH 2.0 process will increase the amount of usage for Ethereum in smart contracts.
The serenity phase will be the fourth phase in the development of ETH. The first phase was the frontier, the first version of the ETH platform. It was followed by Homestead, which was launched in 2018. The third phase was Metropolis, which involved two hard forks known as Byzantium and Constantinople.
Ethereum price dropped this week after the media misquoted Vitarik Buterin. According to reports, the developer of ETH was quoted saying that serenity would be delayed. He later clarifying, saying that he expected the process to go on in July.
From a fundamental perspective, I expect the Ethereum price to rally as the focus shifts to the new upgrade after the halving ends.
On the daily chart, we see that Ethereum price formed a Doji pattern on Monday this week. It followed this with three white soldiers candlesticks. Also, we see that the ETHUSD pair is trading between the 50% and 61.8% Fibonacci retracement level. Therefore, if the pair ends in the green today, it will complete the white soldiers pattern, which means that bulls will be in total control. This will likely see it attempt to retest the 61.8% retracement level at 213.
On the flip side, if it closes in the red today, it will mean that bulls have failed to hold the upward trend. This could see Ethereum price retest the 50% retracement and the 50-day EMA at 188.