Ethereum has been the recent talk of the crypto town. ETHUSD gained a lot more than BTCUSD in the past three weeks. Investors are anxiously waiting for a breakout over the $250 level.
Ethereum co-founder said ETH 2.0 will now likely come in the third quarter of 2020. ETH 2.0 is brilliant and could be disruptive in several ways.
Decoding the ETHUSD accumulation
The hype around Ethereum 2.0 is rapidly growing. Two broad reasons spur the accumulation.
- The herd-following investors are merely doing what their peers are doing.
- Informed investors know and understand the benefits of ETH 2.0 in the long run.
Ethereum 2.0 offers a staking mechanism. Users can stake their ETHUSD and get rewarded for the same. It is a similar analogy to ‘making your money work for you.’
Not all ETHUSD users will be able to stake their holdings. It will apply to users who have more than 32 ETHUSD in their wallets. Hence, the rapid accumulation of ETHUSD.
Arcan Research is a group that works on data-driven analytics and research in the cryptocurrency space. They recently tweeted:
“almost 120,000 ethereum wallets are ready for staking. This number has grown by 13% over the past year.”
Technical analysis and price movement of ETHUSD
The four-hour timeframe shows ETHUSD is still moving within a small range. The good news is that Ethereum is above the Exponential Moving Average of the Bollinger Bands.
The day’s range for ETHUSD is $238.91 — $249.99. The peak was just shy of the $250 mark, which suggests that $250 could be a psychological barrier.
In that case, ETHUSD could witness selling pressure once it reaches $250, and we can expect a more profound drop than the current levels.