Despite the long-awaited successful launch of the main Ethereum 2.0 network, the price of ether has plummeted as bitcoin prices have plummeted.
To Report The price of Ether, the native digital currency of the Ethereum network, fell more than the price of Bitcoin in the recent correction.
The price of Bitcoin fell by more than 9% in a few hours after reaching its historic high in several exchanges such as Coin Base and Bainance. During the same period, the price of ether fell by 11%.
With the launch of the Ethereum 2.0 update, the profound correction of the Ethereum price was a surprise. On December 1, Ethereum Bacon China 2.0 was launched on the main network. This is an important event and a turning point for the Ethereum.
Ethereum 2.0 is an important upgrade in the Ethereum blockchain network that improves the scalability and capacity of network transactions. Prior to the update, the network had a capacity of 15 transactions per second.
After the upgrade, and possibly as the number of sharing chains increases in the long run, Ethereum will be able to process thousands of transactions per second.
For the Ethereum network, this upgrade is fundamentally positive, as it allows decentralized applications to operate in the Ethereum network without barriers to scalability. It will also allow new cycles to operate more consistently and have a better user experience for their users.
The correction of the price of ether after the upgrade of the network was expected due to the tendency of the market to buy rumors and sell news (news feed). For example, when the news of the Ethereum 2.0 update was officially confirmed in late November, prices dropped from around $ 620.
However, an 11 percent drop in ether prices in just two hours has left traders stunned. The importance of updating Ethereum 2.0 and its implications will most likely make the market expect Ethereum to be more flexible in the short term.
Following the launch of Bacon China, the leaders of the digital currency industry are now very optimistic about Ethereum’s medium- and long-term growth. This has probably reinforced the positive market sentiment towards Ethereum.
Joseph Lubin, co-founder of Ethereum and founder of ConsenSys, sees the Ethereum 2.0 update and change in the stock-proof consensus mechanism as an important upgrade. He said:
Launching Bacon China Ethereum 2.0 is a manifestation of a new feature and text that attracts a large number of people to Ethereum. More than 270,000 validators from around the world are now participating in the new Ethereum 2.0 consensus mechanism. Proof of stock is an important boost to the economic incentives of digital currencies, which has established Ethereum as an automated and targeted foundation for building trust. Overall, we are committed to building a network with maximum decentralization.
Traders expect to see a deeper pullback or at least a relative correction in the short term. The futures market was hit hard by the sudden fall in the price of bitcoin, which also disrupted the derivatives market.
A trader nicknamed “TraderKoz” believes that if the ether stabilizes above $ 620, it will be convincing to buy it. But if the current pullback continues, the $ 561 level will be an important support point in the short term. He believes:
We are currently witnessing good preparations for the Ethereum price movements, which started on Monday and the weekly Ether candle is opened at a good price. It will not be a surprise if we see fluctuations in this range for a short time. If the $ 620 price stabilizes, it will be a good opportunity to open up long positions.