Though Ethereum price is falling now, many traders think that a massive rally is underway as ETH 2.0 upgrade is getting closer.
Ethereum (ETH) price has fallen by 1.27% in the past 24 hours. This comes as the new upgrade to Eth 2.0 is just around the corner. Current price levels at $168.63 have made everyone believe that Ethereum holds promise and may do even better in the markets this year.
The first fundamental thing to change for Ethereum this year would be the shift to proof-of-stake (PoS). This shift creates a new scenario for the world’s second-largest cryptocurrency.
Proof-of-stake (PoS) is seen by many to be the next big thing to hit the crypto space. There are already many problems surrounding proof-of-work systems (PoW). Ethereum’s shift from PoW to PoS is seen as the first fundamental shift that will allow for new variables within the Ethereum ecosystem.
The scaling solutions that are coming in Eth 2.0 are going to enable transactions within the Ethereum ecosystem to become faster. This also raises the bar for the Dapps within the Ethereum ecosystem.
Ethereum (ETH) Price Could Rise after Eth 2.0 Upgrade
Ethereum founder Vitalik Buterin had already indicated in a recent interview that the final stages to Eth 2.0 launch were close. This announcement was viewed by many as a positive development after years of moving the goal post of the upgrade.
This also comes as the Bitcoin halving event is only around 35 days away. Ethereum price levels already indicate that a price rally might just be in the works. With prices being around the $170 region, many think that this is an indication of a bullish trend that is set to occur anytime soon.
The monthly high of $176 in the short term and a retracement to below $170 indicates that support levels for the cryptocurrency token are being tested.
It also is an indication that price momentum has returned to the cryptocurrency markets. COVID-19 seems to batter all the markets within its path. Cryptocurrency markets have been the exception so far.
So far, Ethereum price hasn’t broken the 200 moving average line. If it breaks through the 200 MA, then a rally could be confirmed.
Analysts Believe that Ethereum Is Undervalued
Certain analysts in the crypto space believe that Ethereum is highly undervalued by almost a quarter of its current price values.
#Ethereum's MVRV Ratio, a metric used to assess if price is above or below "fair value", currently sits at 0.8 – indicating that it is currently undervalued.$ETH's realized price is currently $202 while current market value is $164.https://t.co/1Ds0PoTar9 pic.twitter.com/etfwk8t4WW
— glassnode (@glassnode) April 6, 2020
Other bullish analysts believe that the breakout season for the crypto space is just around the corner.
This seems to be perfect for “crypto-twitter” and “crypto-Reddit”. The reason being that the social media effect on cryptocurrency prices is still felt; albeit to a lesser degree than previously thought.
Of such rosy scenarios to occur without challenges, one thing must occur and then the bulls can then take a full swing: mass adoption.