- A Biden win is weakening the greenback against other currencies
- Ethereum (ETH) price is up about 6% today to print a fresh 2-month high at $447.50
- A potential correction to $420 is likely to facilitate more buying as bulls target $490 in case $445 gives way
Ethereum (ETH) price has soared a further 6% today to quickly close the gap between two resistance lines of $415 and $445.
Fundamental analysis: Ethereum 2.0 will launch on December 1
The entire cryptocurrency market is screaming higher after the dollar faced a strong selling pressure on a likely Joe Biden win in the U.S. elections. More stimulus will likely come soon once Biden is sworn in which will weaken the greenback in relation to other currencies.
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Elsewhere, Ethereum Foundation said the long-anticipated network upgrade Ethereum 2.0 is set to launch on December 1, a change from its initial plan according to which the upgrade was expected to roll out on January 3, 2021, the platform said in its official blog post.
After the upgrade, Ethereum blockchain will change its operating model from a Proof-of-Work (PoW) model to Proof-of-Stake (PoS), thus linking their cryptocurrency to the network as collateral.
In order for the upgrade to come into effect, 16,384 validators will have to stake at least 32 ether, which amounts to around $12,800 at the time of writing.
The first phase of the rollout of the upgrade is the launch of the Beacon Chain, which will facilitate the transition which is classified as the Ethereum 2.0 genesis event.
“We’ve hardened Ethereum 2.0 as much as we can with simulated test environments, formal verifications and audits,” said Joe Lubin, Ethereum co-founder and Chief Executive.
“We are incredibly excited to see the community galvanize around the first phase of Eth2, now with real value at stake.”
As already noted, the most important aspect of this upgrade is the switch from Proof-of-Work (PoW) to Proof-of-Stake (PoS), which will help maintain the blockchain more efficiently.
Apart from that change, the second most significant upgrade is the inclusion of sharding to the Ethereum network which is expected to come out in a later phase. Sharding means that only a fraction of nodes is needed to authorize a transaction, thus improving the network’s flow rate.
The 2.0 upgrade will be launched over several phases in the coming months and the rollout of the Beacon chain represents the very first phase.
Technical analysis: A new 2-month high
Ethereum (ETH) price is up about 6% today to print a fresh 2-month high at $447.50. The buyers were able to quickly close the gap between the prior resistance line at $415 and $445 given a strong momentum that the crypto market finds itself in.
Ethereum (ETH) price daily chart (TradingView)
In the last month’s analysis, I predicted that ETH buyers are likely to push towards $415 and $446 in November given the recent bullish momentum. From here, any dip to $420 is seen as an opportunity to get on the long side with the next target set at $490 in case $445 gives way.
Ethereum (ETH) price is ramping to tag a new 2-month high. Elsewhere, Ethereum 2.0 upgrade is expected to go live on December 1, the Ethereum Foundation wrote in a blog post.