After the fall of Terra Luna, decentralized finance investors are focusing on Ethereum’s journey for long-term growth. Due to soaring inflation, the Federal Reserve is tightening the monetary system. At that time, Ethereum will launch a new ‘Merge’ upgrade, and it is one of the much-needed upgrades for the long-term sustenance of cryptocurrencies.
The core developers of Ethereum made major progress in the form of this upgrade. The co-founder of Ethereum, Vitalik Buterin, announced the upgrade would take place in August this year. After that, the mining process of ETC coins will change because the Ethereum blockchain will switch from proof-of-work consensus to proof-of-stake consensus. In short, it will replace the miners with Ethereum holders performing more or less the same tasks.
It is a more eco-friendly development for the crypto world. With a smaller carbon footprint and a higher yield, DeFi investors assume a rally in Ethereum.
Besides that, it also makes the transactions affordable and less costly because it will reduce the Ether miner fees for every transaction. Now ETH holders will play the role of a blockchain validator and get rewards for staking the coin, and they also get higher yields for staking.
It also improves the supply of ETH because miners usually sell their coins for cash to cover their operational costs, and in this way, they reduce the supply of currency. Indeed, the price of Ethereum will grow in the next five years, but read ETH predictions to know more about the possible future price levels.
At the time of writing this post, ETH/USD is trading around $1900. We think $1950 will be a resistance level, and the price may retrace further from that level. If it crosses the level, the next resistance will be around $2400.
On the daily chart, most of the technical indicators are neutral, which means the price may consolidate between the range of $1950 and $1690. That is why it is a good time to get a short-term profit. Candlesticks are forming around the baseline of the Bollinger band. Then a question definitely comes to your mind, is it the right time for long-term investment? We have to analyze the weekly chart of Ethereum.
It had been forming higher highs and higher lows in the past, but it broke the trend in the second week of January this year. After that, the ETH price is in a downtrend, and we cannot say it is a long-term bullish until the coin price crosses the level of $2500.
Though the chart seems bullish, we do not think it is the right time for the short-term investment. However, you can invest for the long term because Ethereum is a popular cryptocurrency, and it will grow in the future. Please follow our website to get the latest updates on Ethereum and other cryptocurrencies.
Credit: Source link
Leave a Reply