Can Ethereum Resume Uptrend As the Shift to Proof-of-Stake Gets Postponed?
Ethereum launched the ETH 2.0 hard fork in September last year, which was a much anticpated upgrade. Although gas fees have continued to remain high, which is driving people and investors to other competitors. ETHEREUM coin was on a decline since November, after failing to push above the $5,000 level which is a major resistance zone.
Ethereum reversed lower and fell below $2.200 by January, as the pick up in the global crypto crackdown turned the sentiment negative for cryptocurrencies. The 50 daily SMA (yellow) was acting as resistance for ETH/USD, but last month the sentiment improved in the crypto market and Ethereum pushed above that moving average and the $3,000 level as well.
Ethereum Daily Chart – The $3,000 Level Holding As Support
Will the bullish trend resume again for Ethereum?
But, buyers couln’t overome the 200 daily SMA (purple) whihc has provided support before so this time it seemed like it turned into resistance. We saw a pause at the 20 SMA (hray) for several days, but the decline resumed again althugh it has stalled again at the 100 SMA (green) now, which stands right at $3,000.
So, there might be a bounce from here if the bullish momentum of last month was to resume, but the sentiment has to improve in the crypto market as well.
Ethereum Merge with Beacon Chain Might be Delayed Despite Successful Testnet
As Ethereum approaches its long-awaited transition to proof of stake during the Merge with Beaco Chain, developers have launched the mainnet’s first “shadow fork”. The purpose of this is to stress-test the assumptions about testnests and the mainnet.
This upgrade will be the official switch from proof of work to the proof of stake consensus for Ethereum. Both mechanisms enable a distributed network of participants to verify blockchain transactions, but they differ in how they achieve consensus.
The test aimed to ensure that “The Merge”, which will join the proof-of-stake Beacon Chain with the Ethereum mainnet, replacing energy-intensive mining with staking, doesn’t run into problems. The Merge was scheduled for June but has been postponed for sometime after July now for no apparent reason.
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