A Biden victory weakens the dollar against other currencies
The price of Ethereum (ETH) rose today by about 6% and reached a new 2-month high of $447.50
A possible correction to $420 will probably facilitate further buying as the bulls are targeting $490 if $445 gives way.
The price of Ethereum (ETH) rose another 6% today to quickly close the gap between two resistance lines of $415 and $445.
Fundamental analysis: Ethereum 2.0 to be launched on December 1
The entire crypto-currency market is crying out after the dollar came under strong selling pressure due to a likely victory for Joe Biden in the U.S. elections. Further impetus is likely to come soon as Biden is sworn in, which will weaken the greenback against other currencies.
Elsewhere, the Ethereum Foundation said that the long-awaited network update Ethereum 2.0 will be introduced on December 1, a change from the original plan, which called for the update to be introduced on January 3, 2021, the platform said in its official blog posting.
After the upgrade, the Ethereum block chain will change its operating model from a proof-of-work (PoW) model to a proof-of-stake (PoS) model, thereby coupling its crypto currency to the network as security.
In order for the upgrade to take effect, 16,384 validators will need to use at least 32 ethers, which is about $12,800 at the time of writing.
The first phase of the upgrade is the introduction of the Beacon Chain, which will facilitate the transition, which is considered the Genesis event of Ethereum 2.0.
“We have hardened Ethereum 2.0 as much as possible with simulated test environments, formal reviews and audits,” said Joe Lubin, co-founder and CEO of Ethereum.
“We are incredibly excited to see how the community is moving around the first phase of Eth2, now that real value is at stake.
As noted earlier, the most important aspect of this upgrade is the move from Proof-of-Work (PoW) to Proof-of-Stake (PoS), allowing the block chain to be maintained more efficiently.
Apart from this change, the second most important upgrade is the inclusion of sharing in the Ethereum network, which is planned to be released at a later stage. Sharing means that only a fraction of the nodes are required to authorize a transaction, improving the flow rate of the network.
The 2.0 upgrade will be introduced in several phases over the coming months, with the introduction of the beacon chain being the very first phase.
Technical analysis: a new 2-month high
The price for Ethereum (ETH) rose today by about 6% and reached a new 2-month high of $447.50. Buyers were able to quickly close the gap between the previous resistance line at $415 and $445 as the crypto market is in a strong dynamic.
Ethereum (ETH) Price Daily Chart (TradingView)
In last month’s analysis, I predicted that given the recent upward momentum in November, ETH buyers are likely to push towards USD 415 and USD 446. From here, any drop to $420 is seen as an opportunity to go long and set the next target at $490 if the $445 should weaken.
The price for Ethereum (ETH) rises and reaches a new 2-month high. Elsewhere, the upgrade to Ethereum 2.0 is expected to go live on December 1, the Ethereum Foundation wrote in a blog post.