Ethereum Could Break Higher Big Time Once it Stabilizes at $500
Ethereum (ETH) has faced a rather strong surge throughout the last few days that has taken it from the $360 line to highs of $420. According to analysts, the coin will make a macro move higher as soon as it turns $500 into support.
The cryptocurrency is now prone to move higher as it holds the $390-$400 level.
Ethereum to Break Higher Once It Holds $500
Analysts are arguing that if Ethereum manages to make the $420 level into support, it is prone to move to $500.
One crypto-asset analyst discussed the matter and said: “A nice break above the $395 flat top on $ETH. ETH doesn’t always give throwbacks, so a $395 throwback is certainly possible before higher, but I wouldn’t be on it. Otherwise, this looks good for a run back near the $490 highs.”
If ETH flips $500 into support, analysts say it will explode higher. The chart below was shared on October 23rd, and it suggests that if Ethereum turns $500 into support, it will begin to rally to four digits on a macro basis.
Chart of ETH’s price action over the past few years with analysis by crypto trader CJ. [Image Source: @irncrypt on Twitter]
The $500 line is significant because it is just around where the market topped throughout August’s rally. Above the $500 level, there is also a bit of historical price action, suggesting that the coin could enter ‘price discovery.’
Major Setback Regarding ETH2
At the same time, Ethereum is encountering a setback as reports suggest that the ETH2 upgrade may be delayed. In a comment, Ethereum Foundation researcher Danny Ryan said that the deposit contract for the update would not launch until an audit is completed.
“This 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,” Ryan said. “Given 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.”
The audit could end up being delayed until November, Ryan said.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.