With only days to go before ETH 2.0 launch, Ethereum is showing a big green signal for traders and hodlers.
The Eth2 mainnet will be launched when the amount of Ether (ETH) staking in the direction of the Eth2 deposit contract reaches 524,288. CryptoQuant data found that the staking value at the Eth2 deposit contract address shows a correlation with the ETH price.
Ki Young Ju, CEO of CryptoQuant, noted that the correlation appears to be growing as the release date approaches. Wrote:
“As the ETH 2.0 release date approaches, there appears to be an increase in the correlation between the price of $ ETH.”
This trend has been anticipated by analysts due to the importance of Eth2. When activated, Eth2 is expected to improve the transaction capacity of the Ethereum blockchain network.
Since nearly $ 300 million worth of ETH would be deposited in the direction of the Eth2 deposit contract, it could also lessen the selling pressure on ETH in the long term.
The price of ETH surpassed $ 500 for the first time since May 2018, breaking a two-year range. It has since rallied above $ 580, demonstrating strong momentum and little resistance above $ 620.
If ETH breaks above $ 620, the next high time frame resistance levels are at $ 784, $ 915 and $ 1,200.
Traders expect ETH to hit $ 620 in the short term and possibly consolidate until the next breakout occurs.
A trader known as “Rookie” said that ETH could hit $ 620 in a matter of days as it shows strong technical momentum.
Although the prices of Bitcoin (BTC) and ETH fell back over the weekend, analysts say that TWAP algorithms could make momentum resurface once again. Qiao Wang, a trader and quantitative analyst, wrote:
“The reason weekends exist is to shake weak hands before institutional buyers re-enable their TWAP algorithms on Monday.”