By
Temitope Olatunji
April 18th, 2024
Ethereum bulls have continued to outperform themselves in April in spite of the coronavirus-related volatility. Ethereum (ETH) price proves that it has the potential to rise to $200 despite retreat to $170 support.
One of the teams that helped develop Ethereum, the second strongest cryptocurrency, Prysmatic Labs introduced the ETH 2.0 Topaz test network as a substitution for the preceding Sapphire test network and finally managed to deliver it successfully. Right now, the Ethereum network can handle just 15 transactions per second (TpS), which represents the pretty small number. The team, however, decided to change this with Ethereum 2.0. And it’s clear that the closer these updates get, the more talks about Ethereum (ETH) price are there.
Working Product as Ethereum ‘Very Complex’ Changeover
However, let us try to explain why has the whole thing only runs on a test network. A test network is an environment that is meant for test purposes only. It allows application developers to experiment without destroying the network.
Especially with a “working product” like Ethereum, a changeover is very complex and has to be done with great care.
ETH 2.0 would, as it is planned, remove all possible problems that afflict the Ethereum network. This includes relatively limited scalability and security. Also, it will apply the possibility to stack Ether (ETH) in order to validate transactions on the network and earn extra tokens as payment.
Also, It should be mentioned that Ethereum 2.0 will be faster and more vigorous because it supports sharding. Sharding, just for the reminder, is an approach that divides the processes in the Ethereum network into smaller nodes so that it can handle more transactions.
Analysts say that Ethereum 2.0 is expected to have a categorically positive effect on the value of its native cryptocurrency.
Ether Should Be Burned?
Also, there is an idea that Ether should be burned when transactions take place, which would only intensify the supply-demand dynamics in favor of bulls.
Meanwhile, the number of smart contracts deployed that opened on the Ethereum network reached 1,971,632 in March, hitting a new all-time high and marking a 75% increase from the previous month.
Online analytics platform, Dune Analytics, said the number of contracts deployed on Ethereum during the last year with the average only registering around 670,000 contracts per month.
However, even though the number of smart contracts has increased, there wasn’t any apparent rise in the number of transactions as a result. That might actually suggest that numerous contracts were either not properly handled, or either didn’t translate to an increase in end-user engagement.
Ethereum co-founder Vitalik Buterin commented:
“Note that this is likely not quite yet ‘THE Multiclient Testnet™,’ as we are likely going to do one or two restarts soon to have more chances to test the genesis mechanism.”
At the time of writing, Ethereum (ETH) price was climbing by 3.74% and was $184.01. However, that means it rose above the $180 resistance and analysts think it is likely to rise even more towards the $195 and $200 levels pretty much soon.
Be it as it may, this also means that the bulls are now in control and they are likely aiming a test of the $200 level. However, if we look at the charts we can see there was a break above a major bearish trend line with resistance near $177 on the hourly chart of ETH/USD.
Any Ethereum (ETH) Price Movement Possible
It is possible that the pair could even go lower, but fall remains supported near $178 and the 100 hourly simple moving average.
Ethereum should definitely surpass the 100 hourly simple moving average for a fresh rally against the US Dollar. ETH price stood above the $170 level and it did break the 100 hourly SMA.
The bulls again gained control and they were able to clear a couple of important hurdles near the $175 and $180 levels.
The price also went above the 61.8% Fib retracement level of the main drop from the $190 swing high to $165 low.