Ethereum NewsEthereum Price Analysis

Ethereum priced at $ 600; Examine the 3 main reasons


Ethereum prices have crossed the $ 580 mark in recent days and are currently fluctuating in the $ 590 range. Many believe that the whispers of launching Ethereum 2.0, the technical situation and the fundamental factors support this upward jump.

To Report Coin Telegraph, launching the second version of Ethereum, breaking technical patterns at higher timeframes, and network fees are some of the most important factors in the recent leap.

Ethereum 2.0

The Ethereum 2.0 core network will be up and running when Ethereum 2 shares Ethereum 2 reach 524,288 units.

CryptoQuant data show that the value of the Ethereums of the network’s deposit agreement correlates with the price of the Ethereum.

Ethereum prices compared to stock currencies
Ethereum prices compared to stock currencies

“As we get closer to launching Ethereum 2, this correlation will increase,” said Ki Young Ju, CEO of Cryptocurrency.

As we get closer to the launch date of Ethereum 2.0, we seem to see an increase in the correlation between the value of the shares owned and the price of this digital currency.

Given the high importance of Ethereum 2.0 and its impact on price, its launch is also one of the most important issues of this network at the moment. With the launch of the new version of the Ethereum network, we are expected to see an increase in transaction capacity and scalability.

With about $ 300 million in ether in the Ethereum 2 deposit agreement, it can be said that in the long run we will see a reduction in sales pressure in this network.

Higher time frames

Ethereum prices managed to cross the $ 500 mark for the first time since May 2018. The $ 500 resistance was broken while the 2-year channel of this digital currency was also broken. The $ 580 resistance is currently broken and the price of Ethereum is fluctuating in the range above $ 590. According to many experts, the price of Ethereum up to more than $ 620, does not see much resistance.

If the Ethereum price breaks $ 620, the next resistance at higher timeframes will be $ 782, $ 915 and $ 1,200.

Ethereum Price Chart
Ethereum Price Chart

Traders expect Ethereum to break $ 620 in the short term and possibly fluctuate in a certain channel until the next jump.

An Ethereum analyst, nicknamed Rookie, estimates that the price of Ethereum will exceed $ 620 in the coming days; Because its technical condition shows this.

It is worth noting that the price of Ethereum and Bitcoin is likely to return in the last days of this week. Analysts say TWAP algorithms could cause prices to jump again. Qiao Wang, a trader and analyst, says:

The reason for the weekends is the fall of timid investors. After that, and on Mondays, large-scale buyers turn to their TWAP algorithms.

Fundamental factors

Based on data within the Etherscan chain, Ethereum’s daily fees are breaking its all-time high.

Gas is the fee paid in the Ethereum network. As the volume of fees increases, it indicates an increase in users’ use of the Ethereum network.

Volume of Ethereum fees
Volume of Ethereum fees

Most likely, the increase in fees is due to two factors: the increase in Ethereum 2.0 addresses that offer shares, and the increase in decentralized finance projects (DIFA).

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