Analyst argues that Ethereum price could rise 40% versus Bitcoin if London Fork comes
Ether (ETH) could rise almost 40% against Bitcoin in the coming trading sessions, according to an analyst.
So believe Michaël van de Poppe, a market analyst based in Amsterdam, who suspect that the ETH / BTC exchange rate will soon rise from the current range of 0.05-0.06 sats to a high of 0.07 sats.
The technical chartist is basing his bullish analogy on the pair’s support at 0.063 sats. The price floor was critical in sustaining the uptrend in ETH / BTC during the infamous crypto market crash in mid-May 2021. It also served as a solid support during the pair’s uptrend in the first trading session in May 2020.
“Ethereum continues its race against the Bitcoin pair,” said Van de Poppe.
“A beautiful flip of 0.063 zones and a bull run at this point. As long as 0.063 holds, I expect a continuation to 0.075. “
What the fork
Similarly bullish came when ETH / BTC extended their price rally from June 27 low of 0.0552 sats by 21.28%. It shows that many traders prefer to sell their Bitcoin holdings in the past few days in search of opportunities in the Ethereum market. In the year to date, the second largest cryptocurrency has risen by more than 160% against Bitcoin.
The transition is based on the excitement surrounding the transition of the consensus layer of Ethereum from the previously energy-intensive proof-of-work to a cheaper and scalable proof-of-stake. The project started the first phase in December 2020, called Phase 0 or Beacon Chain. It introduced the so-called fragmented network architecture for the Ethereum blockchain.
Sharding is a technique for scaling Ethereum network shards into different pools (so-called shards). Then it assigns nodes to each shard. These nodes need to track and validate their respective shards, eliminating the need for each node to validate every transaction, which is the case in the current proof-of-work consensus.
The #Ether The London hard fork consists of 5 EIPs:
1.EIP-1559: Fee market change for $ ETH 1.0 chain
2. EIP-3554: Hard bomb delay until December 2021
3.EIP-3529: Reduced cashback
4.EIP-3541: Rejection of new contracts from byte 0xEF
5.EIP-3198: BASEFEE opcode
– Young and investing (@QuintenFrancois) June 27, 2021
The next level that brings Ethereum closer to the Proof of Stake is EIP-1559, also known as the London Hard Fork. The upgrade plans to replace Ethereum’s “auction at first price” fee model with a basic network fee that can be changed depending on the network’s needs. It hopes to solve the blockchain problem with higher gas and transaction fees. It also aims to turn ETH into a deflationary token by burning off the underlying network fees.
Due to the impending shortage, analysts and traders see enormous upside potential in the Ethereum market. The bullish formula is simple: the dwindling supply of ether floating around against the increased demand will make it more valuable than it is now. As a result, the cryptocurrency has risen against Bitcoin by 2021.
In addition, CryptoQuant, a cryptanalysis company based in South Korea, reported on the increasing holding behavior of ether traders and oriented itself on their declining ETH reserves on all cryptocurrency exchanges.
The amount of ETH held in all Exchange wallets hit a 2.5-year low on Monday.
The decline in ether on the exchanges is clearly a positive sign given investor confidence in the future of blockchain, said Yuriy Mazur, head of data analytics at CEX .IO Broker.
The CEO added that investors are using alternative means to secure their ETH holdings during the price corrections rather than directly dumping for cash. He cites ETH-based investments in the decentralized financial sector as a prime example.
“The total value of caged Ethereum has skyrocketed over the past year. The upcoming entry into Ethereum 2.0 (proof-of-stake consensus model) has also absorbed the exit from Ethereum trading platforms, “said Mazur, adding:
“The exhaustion of ether on the exchanges will contribute to a shortage of the circulation, which can have a positive effect on the price.”