Ethereum, the second-largest cryptocurrency to date, sparked the flame of speculation, as Bitcoin’s runner-up managed to record a yearly high of $230.58. This price point is the highest since August 2019, when the crypto sector saw a massive downward push. As of press time, Ethereum corrected its price, losing 2,4% of its momentum.
Crypto traders are observing Ethereum’s price movements, as the ERC-20 token might become one of the largest gainers in the following few years. Switzerland-based crypto trader Bitcoin Macro made his forecasts about Ethereum’s bullish run on twitter, stating that Ethereum might go over $10,000. However, he noted that his outlook is not for 2020.
The primary cause for Bitcoin Macro’s price forecasts is the long-awaited Ethereum 2.0 update, which will remove mining and upgrade Ethereum to a “proof-of-stake” consensus algorithm. Proof-of-Stake means Ethereum holders may choose to put their savings into a “staking” account, receiving an interest rate for using their tokens on Ethereum’s blockchain. The massive upgrade still doesn’t have an exact timeframe, but the initial phase is scheduled for July 2020. The new protocol might be a turning point in Ethereum’s price movement, skyrocketing the #2 crypto.
Financial experts, however, are seeing signs of a deeper correction, as the short-term price per one ETH token dropped below the 50-day SMA at $225. Ethereum’s price swing settled around the $223 mark. Trading experts are cautious about giving strong predictions because Ethereum’s price suggests a period of consolidation. Bears might try to overcome the $221 support zone, and if so – Ethereum could fall down below the $210 mark.
For a positive correction, crypto experts suggest a massive move above $230, which will mitigate factors such as the 23,6 Fibonacci retracement line, as well as the 4-hour Bollinger bands chart. Looking at the 7-day charts, Ethereum made a 25% price increase – from $185.40 on February 4th, to a high of $229,86 on February 10th. The monthly chart is even more impressive, with Ethereum gaining 61 percent from January 10th.