Ethereum price is in a strong footing today ahead of the important ETH 2.0 launch. The currency, which is the second-biggest digital currency in the world, is up by more than 5% in the past 24 hours, pushing its value close to the three-year high of $610.
Today, at noon UTC time, the ETH 2.0 update will happen after developers and contributors contributed 867,000 ETH worth more than $528 million to support the update. Ideally, the upgrade will shift Ethereum from a proof-of-work to a proof-of-stake (PoS). In PoS, holders of ETH will be rewarded by just locking their assets in the network.
After the ETH 2.0, the next step towards improving the Ethereum network will be the creating of shard chains. This is an important upgrade that will help improve the speed of the network. The sharding will happen in 2021, followed by phase 1.5. In this stage, ETH 1.0 and ETH 2.0 will meet.
So, what next for Ethereum price?
Ethereum price technical outlook
Looking at the daily chart, we see that Ethereum price has pared-back the losses sustained on Friday last week when it fell by 22%. At the current price of $611, it is slightly below November’s high of $622. The price has formed a double-top pattern and is still above the short and long-term moving averages. It is also slightly above the important support level at $490. Therefore, while the long-term outlook of ETH is bullish, we can’t rule out another pullback as some traders take profit.
ETH technical chart
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