Solid News

Pending Ethereum Network Upgrade

8/9/2022 3:37 PM

The ETH/USD pair started the current week with growth, rising to the 1818.30 area.

The quotes are supported by the upcoming transition of the Ethereum network to the Proof-of-Stake (PoS) proof algorithm, which is scheduled for September. However, with the approaching date of the merger of Ethereum and Beacon Chain, the issue of accepting a new update suddenly escalated. The fact is that several mining companies, which are at risk of losing a significant part of their income, oppose and declare their readiness to fork with the creation of a new Ethereum PoW network that supports the old Proof-of-Work (PoW) proof algorithm. Experts note that the new blockchain may be viable if cryptocurrency exchanges support them, but Ethereum will not be able to resist the renewed Ethereum network seriously. Also, the community is interested in what to expect after the merger: most investors hope that ETH will become more in demand and seriously rise in price, but there are also opposite opinions. So, a major investor Benjamin Cowen last week did not rule out that the fork would lead to an outflow of funds in BTC, while the observations of analytical projects do not yet confirm this opinion. According to CoinShares, major market players invested 16.3M dollars in ETH-based products last week alone, and this is the seventh consecutive week of positive dynamics.

In general, the transition of Ethereum to PoS can provide an increase in the prices of digital assets in the coming month, but any hint of a new update delay will be able to disappoint investors seriously.

The trading instrument maintains an upward trend, as evidenced by the upward reversal of Bollinger bands and the stabilization of the MACD histogram in the positive zone. Upside targets are 1895.00 (Fibonacci retracement 38.2%) and 2000.00 (Murrey [8/8]). Stochastic reversal down in the overbought zone does not rule out a correction to the area of ​​1625.00 (the middle line of Bollinger bands, Murrey [5/8]) but is unlikely to lead to a break in the current trend.

Resistance levels: 1895.00, 2000.00, 2125.00. | Support levels: 1625.00, 1500.00, 1375.00.

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