There is an evolution, characteristic of the blockchain and cryptocurrency space. As project creators strive to create the best experience and reach that critical mass where both developers and users can’t get enough of the network, the ball is on Ethereum’s court. The metamorphosis was simply inevitable.
Ethereum’s Istanbul will Open doors for ETH 2
Acknowledging that the smart contracting space has grown by leaps and bounds since Vitalik and team trailblazed and built on the Bitcoin source code, ushering in the age of tokenization, their shift from a Proof-of-Work consensus algorithm to a Proof-of-Stake model, analyst say, will be shaping for the staking world.
Presently, the network is in the early stages of initiation and as they edge closer to Q1 2020 where the implementation of Istanbul will set the ball rolling for Serenity and high throughput, a recent research from Binance is hinting that Ethereum migration could trigger a mass migration from Proof-of-Work systems.
Behind this rationale are the benefits associated with staking and energy efficiency.
Binance Paints a Bright Staking Future
However, it is staking that Binance based their study on, saying “staking is expected to take a most substantial portion of the market’s attention.” For users and owners of ETH, the benefits would be two-fold as Ethereum is financially anchored.
One is that the new network will be scalable without talks of environmental degradation. Secondly, the activation of Serenity will see ETH issuance drop as a new monetary policy is adopted.
ETH/USD Price Analysis
ETH prices are cooling and after a strong end of week ending Oct 27, prices are consolidating.
In the last day, ETH has registered modest gains against the USD and BTC. However, from a top-down analysis, ETH has added 7.83 percent against the greenback in the last week as the coin had a boost after BTC resurgence.
Considering the positivity around the market and development towards ETH 2, the prevailing sentiment is bullish.
Technically, there is room for more upsides. First, looking at the chart, there is a three-bar bullish reversal pattern that printed from Oct 23-25. Although Oct 25 posted low volumes relative to Oct 23 bear candlestick, the uptick on Oct 26 cemented buyer’s case.
Given the arrangement, buyers have a chance. Risk-off trader can buy at spot rates and fix their stops at $150-$160 support while risk-averse traders waiting for a signal can wait for a confirmation of Oct 25. That means a high-volume break and close above $200 complete with high trading volumes preferably exceeding $242k of Oct 26. If that is fulfilled and prices rally, ETH could easily surge to $230 and later $300.
Chart courtesy of TradingView-Coinbase
Disclaimer: Views and opinions expressed are those of the author and is not investment advice. Trading of any form involves risk. Do your research.