Cryptocurrency Update: Now It’s Time To Start Buying Ethereum
The Ethereum Rally 2.0
For those of you out there still interested in Ethereum the world’s most advanced cryptocurrency isn’t dead. Far from it, in fact, after yesterday’s news it is now time to start buying ETH again. Why? What happened to make things so different? Well, the ETH development community has finally signaled when Ethereum 2.0 will launch.
The bad news is that the system-wide upgrade won’t be happening in the second quarter of 2020 like we’d been expecting. No surprise there because the upgrade has been pushed back several times already. First slated to launch in Q1 of 2020, developers are now eyeballing the blockchains 5th anniversary. What is surprising is that developers are confident it will launch this year, despite all the delays, and one even put a 95% probability on the event. According to the team anything less will count as a complete failure.
What we can expect is the initial ground-work and testnets to launch sometime in the 3rd quarter with a more full-scale launch once those systems are proofed. In an Ask Me Anything discussion hosted on Reddit the ETH 2.0 teams said the network won’t go live until three clients and run their testnets consistently for eight weeks. With this in mind there are still some significant hurdles for the team to overcome but the outlook is brightening.
What is ETH 2.0 exactly? Well, it is all those upgrades we’ve been expecting that are intended to boost throughput and improve security. The biggest shift for the network is a change from Proof-of-Work to Proof-of-Stake and those details are still not hammered out. There are two schools of thought on how to address the shift, ways to account for previous blocks created by POW and the new ones created by POS. Once solution is to issue “receipt contracts” that can function on the network as placeholders for previous transactions, the other is to form some kind of interoperability bridge that allows old ETH 1.0 to function alongside the new ETH 2.0.
Ethereum Is On The Move
Shares of Ethereum were on the move even before the announcement was made. The worlds “most advanced” cryptocurrency has been edging higher with the entire market but got a boost after the AMA event. Up more than 17% in the last three days, ETH is now attacking resistance at a very key level.
The $225 resistance level is consistent with the September peak and a 5-month high. When broken, ETH will be trading at the highest levels in over half a year and the technical are positive. MACD momentum and stochastic are both bullish and pointing higher, the only negative is that stochastic indicates the possibility of overbought conditions in the near-term.
What traders can expect is to see ETH/USD continue to test resistance at this level and possibly enter consolidation. Consolidation may take several weeks or even months depending on the news that comes out relating to the upgrade. The risk is that news will come out contrary to this latest update and sap demand for this market. If that happens don’t be surprise when ETH plummets by double-digits.
