By Dmitriy Gurkovskiy, author at RoboForex Blog
On Tuesday, May 19th, the ETH rate is correcting slightly after steady growth. The cryptocurrency is generally trading at 214.17 USD.
On D1, the pair keeps developing an uptrend. Currently, it is testing 61.8% Fibo again. If it breaks the level away, we may speak about further growth inside the ascending channel. The potential aim of the growth is still at 240.00 USD. The MACD goes on working off the Golden Cross that formed last week. The histogram is above zero, signaling the continuation of the uptrend.
On H4, the pair keeps growing inside the ascending channel. A bounce off the lower border led the price to the resistance level at 61.8% Fibo. As on D1, the breakaway of this point will let the quotations rise higher. The Stochastic keeps working off the Golden Cross, confirming the growth. The aim of the uptrend is still at 240.00 USD.
This week, the trade volume of the ETH is nearing its all-time high. According to Tradingview, the volume of long positions has been growing since the beginning of the year reaching 1.63 million ETH. Investors think that this may mean further growth of the altcoin. After the halving in the BTC network that reduced the reward per mined block two times, the attention of the crypto market switched to the ETH. Here, investors are greedy for any information about testing or implementing the Ethereum 2.0 network.
On the platform, they think that switching to the second version of the ETH will influence the market more than the BTC halving did. The point is that the update of the network has its fundamental peculiarities and will change the conditions for users. There is still some uncertainty about this but it is normal.
In the Ethereum 2.0, several important aspects must be realized at once. Firstly, the update will solve the problem of scalability this or that way. The Optimistic Rollup development is meant for this which will increase the capacity of the network up to 1,000 transactions per second. Secondly, the algorithm will change from Proof-of-Work to Proof-of-Stake. Thirdly, they plan to introduce the sharding system that will distribute the transactions and smart contracts between the existing blocks.
Altogether, this will make the ETH principally different. This is probably the reason for which the ETH rate is growing.
Disclaimer: Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.