Important point
- Ethereum has gone back more than 18% in the last two weeks.
- Losses expanded after Ethereum Foundation’s Tim Baiko hinted that the “merger” could be months ahead.
- Ethereum should hold $ 3,000 or more to avoid brutal modifications.
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Ethereum followers were frustrated this week after the Ethereum Foundation’s Tim Baiko hinted in June 2022 that the proof of stake transition would not occur. An update was made as Ethereum was trying to find stable price support.
Ethereum sits on unstable ground
Ethereum seems to be trading above the most important level of support in the trend.
The second largest cryptocurrency by market capitalization has fallen by nearly 18% in the last two weeks. Losses have been extended this week after Ethereum Foundation’s Tim Baiko hinted at a delay in “merging” into the long-awaited Proof of Stakes. “It won’t be June, but it will probably be months later,” he says. Tweet Tuesday. In particular, Marge has no fixed date yet, but June 2022 has been discussed by the community for some time as a rough target date.
It’s not June, but it could be months later.There is no fixed date yet, but we are definitely in the final chapter of Ethereum POWs
— Tim Beiko | timbeiko.eth ?? (@TimBeiko) April 12, 2022
The second blockchain has built a reputation for slow development times. The “merger” to Proof of Stake has been planned for several years, and Vitalik Buterin initially suggests that it will be ready in 2016. Further delays can affect the trading price of Ethereum.
Ethereum is testing a 50-day moving average as a support for the last 5 days. This demand zone has been able to maintain Ethereum so far, but soaring sales pressure around current price levels can have bullish and cruel consequences. Violation of the $ 3,000 support level can reduce ETH to $ 2,400.
Despite the bearish outlook brought about by the $ 3,000 suspension of support, the asset has some strong fundamentals to support a bullish dissertation. The Eth2.0 deposit agreement deposits over 11.5 million Ethereum, burns over 2.1 million Ethereum via EIP-1559, and the exchange balance is the lowest 20.6 million Ethereum in four years.
Such market movements suggest a significant drop in sales pressure and potential supply shocks. If Ethereum prints a daily candlestick above the 200-day moving average of $ 3,500, it could go further. In that scenario, the first bullish target would be $ 4,120.
Disclosure: At the time of writing, the author of this work owned ETH and BTC.
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