Ethereum Price Analysis: Eth2 Beacon Chain Mainnet is Live
Ethereum price is below $ 600 less than 12 hours after the Eth2 launch. It's monumental for the network, ushering in a period of better usability and efficiency.
The launch of Eth2 marks the activation of a project that has been worked on for more than six years. The transition from Homestead to Metropolis, and now the Beacon Chain mainnet signals how deep Ethereum is and how dense the project is for developers.
Unlike Bitcoin, Ethereum is more than a transactional layer. Your native currency can be used to pay fees and send value, but it can also be combined with other processes.
The rise of DeFi points to one of its advantages. In less than a year, DeFi dApps now blocks more than $ 14 billion.
As it stands and with changes being made to the protocol layer to improve the network and integrate new features, Ethereum's eventual scalability will eliminate high gas rate issues and really open up finances.
At the height of the DeFi craze in September, gas rates soared, benefiting farmers but at the expense of other facets of the network like gaming and more.
While Eth2 is live, the revamped network will also be the most decentralized. At the time of writing, the Beacon Chain mainnet is protected by over 21,000 validators.
Like miners, they play a crucial role in validating transactions. For your participation, Validators who blocked 32 ETH prior to Genesis will receive 22 percent in APR.
Ethereum price analysis
Ethereum price is trading within a bullish breakout pattern. At the time of writing this article (Dec 2), the currency was slightly below the USD in the last trading week, but had recovered some of the losses from last week.
However, for the trend to continue, there must be more highs above the consolidation. In particular, the ETH / USD pair is within a breakout pattern.
After last week's choppy price movement marked by contraction and correction of the November 23-24 overstretch, the reversal of the 20-day moving average with an increase in trading volumes is targeting buyers.
As the price of Ethereum enters what is possibly the second wave, the first bullish target is at $ 660. It's the 161.8 percent Fibonacci extension level based on the July-August trading range.
The breakout above the August highs and $ 500 was, as mentioned above, marked with high levels of participation, a significant clue.
Previous resistance now support is the divide between bears and bulls. Yesterday's rejection of bears, which resulted in a lower wick, suggests high demand in lower time frames. So every low could be an immediate target loading opportunity at $ 660.
A reversion to the consolidation of early last week could pour cold water on the bulls' ambitions.
Opinions are those of the author and are not investment advice. Do your research.
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