The recovery of the US dollar index is hampering the future of the second largest cryptocurrency. On Thursday, the price of Ethereum (ETH) showed only a slight decrease.
On July 21, price action in the cryptocurrency market as a whole was mostly muted as it took traders a day to absorb recent gains and lock in profits after the strongest bounce since early June.
The Ethereum consolidation remained at the top of the list despite rumors regarding what triggered the recent rally. After an initial date of September 19 was chosen for the main network integration, the market rush accelerated.
Ether (ETH), which reached a high of $1,620 on July 20, surged to a low of $1,463 in the early trading hours of July 21, according to TradingView data, and has since recovered above the $1,500 support level.
ethereETH/USD back around $1,500. Source: TradingView
After the initial price spike caused by the merger news, here’s what many analysts expect as the Ether mainnet’s shift to Proof of Stake approaches.
Market analyst Rekt Capital has published the following chart explaining the significance of Ether’s weekly ending above $1,300 and the subsequent rally higher, describing the July 21 pullback as a good development.
Rekt Captial said:
“Although #ETH could continue rising to reach the upper orange zone, it would be more correct for ETH to go lower. This retest of the lower orange zone will only increase the probability of a continuation.”
With this outlook in mind, a pullback on July 21 raises the potential for a rally to $1,700 soon.
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Vitalik hints at the future of ETH
Co-founder of Ethereum Hinge His plans for future developments Thursday at the Ethereum Community Conference in France go beyond converting the network to Proof of Stake. The upgrade – often referred to as “merging” because it will integrate the Ethereum mainnet with the Proof of Stake beacon chain – is in fact the first in a series of modifications that are being planned.
Ethereum will then undergo additional optimizations that Buterin refers to as “surge,” “edge,” “purge,” and “splurge” after the merger, which he believes is very close because “the only thing left to do is merge into Ropsten.” [test network]He said during the conference. Buterin mentioned that the goal of strengthening the Ethereum network is the reason behind the network’s continuous updates.
Ethereum will only be 55% complete after the merger, which is expected to expire in September.
The reason for the rise is due to the addition of the Ethereum hash, which is a scaling solution, according to ethereum foundation, It will make Layer 2 blockchains more affordable, reduce the cost of pools or bulk transactions, and make it easier for users to operate the nodes that protect the Ethereum network. Buterin added it after the sudden rise
Featured image from Shutterstock, chart from TradingView.com