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Ethereum has undergone a strong surge over recent days that has brought it from the $360 range to highs of $420. Analysts say that it will undergo a macro move higher once it manages to flip $500 into support.
Ethereum Set to Break Dramatically Higher Once It Holds $500: Analyst
The cryptocurrency is currently positioning to move higher as it holds the $390-400 region.
As reported by Bitcoinist previously, analysts say that if the coin manages to flip $420 into support, it is likely to move to $500. One crypto-asset analyst commented on the matter:
âNice break above the $395 flat top on $ETH. ETH doesnât always give throwbacks, so a $395 throwback is certainly possible before higher, but I wouldnât be on it. Otherwise, this looks good for a run back near the $490 highs.â
Should ETH flip $500 into support, analysts say it will be cleared to explode higher.
The chart below was shared on October 23rd. It suggests that should Ethereum manage to flip $500 into support, it will begin a rally to four digits on a macro basis. $500 is important because it is just shy of where the market topped during Augustâs rally. Above $500, there is also little historical price action, indicating that the coin could enter âprice discovery.â
Commenting on the significance of the chart, the trader who made the chart wrote:
âHappy playing this relatively large range until Iâm ready for a full swing. Iâd want to see the mid point of this pivot zone acting as support to take it.â
Chart of ETH's price action over the past few years with an analysis by crypto trader CJ (@irncrypt on Twitter). Source: ETHUSD from TradingView.com
Fundamental Setback Regarding ETH2Â
Ethereum is facing a setback though as reports indicate that the ETH2 upgrade may be pushed back.
In a comment first obtained by CoinDesk, Ethereum Foundation researcher Danny Ryan said that the deposit contract for the upgrade will not go live until an audit is completed:
âThis library is critical to creating keys, signing messages. Critical, in early phases, [means] that if you use this library, they need to be secure; if you use it to generate your wallets, it needs to have good randomness; and if you are signing your deposits which have a signature associated, it needs to be correct,â Ryan said. âGiven that how critical this library is, and given that, if there is a fundamental error in this library we could f*ck some sh*t up in terms of genesis deposits, that is the blocker.â
This audit could result in a delay until November, Ryan suggested.
Another Ethereum developer working on the upgrade said that once the deposit contract is released, there will likely be a 6-8 week gap between the release and ETH2 deployment.
Photo by Oz Seyrek on Unsplash Price tags: ethusd, ethbtc Charts from TradingView.com Ethereum Could Break Dramatically Higher Once It Holds $500
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