The Ethereum Rally Is The Real Deal
New All-Time Highs, Here We Come
It is certain that HODLrs ofEthereum have been waiting a long time for this day for today is the day I can say without (much) doubt that the really in Ethereum is real. Real because, after years and years of set backs and waiting, it looks like ETH 2.0 is finally going to start happening. The test net has been live about two weeks ago and so far there is every indication it is working as expected. To date, there are over 1 million ETH staked to the network with over 20,000 validators taking part in the test. What this means for the market is enormous, far beyond mere trading or a paltry all-time high. If Ethereum 2.0 starts working it will open the door to all that cryptocurrency has to offer.
Yet another reason why ETH is moving higher is the rise of DeFi or decentralized finance. Decentralized finance is a means in which users can stake crypto and leverage it for loans against other tokens. The purpose is to disrupt the banking system once and for all providing an easy method for tapping credit. There are already billions of dollars locked up in DeFi applications including my favorite, the Ripio network.
On a technical basis, you can tell the market likes what it is hearing. Ethereum prices rallied strongly in the two weeks leading up to the testnet launch and then consolidated. The consolidation confirmed as a bullish flag just yesterday when the world’s most advanced cryptocurrency advanced another 10%. Now, with the pattern unfolding before my very eyes, it looks like ETH/USD could easily move up to the $480/$500 level in the very near term. I get this target projecting the flag pole rally leading up to the consolidating and adding it to the baseline of that consolidation. That’s a $120 advance added to support at the $360 is an easy $480.
The $500 level will be the next big hurdle for price action. I suspect the market will get to this level before the testnet becomes the real net. When that happens a move above $500 is very likely. In that scenario, the next target for resistance is near the $800 level and then in the $1200 to $1400 range. Longer-term, the all-time highs are going to be reached well before the roll-out of ETH 2.0 is complete. The developers are expecting that to take 2 years or more, a target I have full faith they will meet or exceed.
