ETH/USD testing critical decision point ahead of ETH2.0 decision
Like other risk assets, Ethereum has had a rough month.
Since the world's second-largest cryptoasset peaked above $3500 early in the month, it has trended steadily lower consistently lower for the last three weeks, hitting a 2-month low under $2800 earlier this week.
It's flying a bit under the radar, but there is a critical catalyst for Ethereum coming up at the end of the week. Ethereum developers will make a critical "go / no go" decision on the transition to Ethereum 2.0 on a developer call tomorrow, April 29. If approved, developers will set a date for the network's formal transition to proof-of-stake, which will dramatically reconfigure Ethereum's tokenomics (with some analysts suggesting that total supply of Ethereum may start to fall) and reduce the network's energy consumption by 95%+.
Looking at the chart, this month's bearish channel is now pressing against the bullish trend line off the January lows, hinting that Friday's decision could mark a key "decision point" for Ethereum. Confirmation of a transition to ETH2.0 (likely in Q3) could be a bullish catalyst that could take ETH/USD back above $3,000, whereas a "no go" decision could lead to a break of the 4-month bullish trend line and a retest of the February/March lows near $2500 next.
Since the world's second-largest cryptoasset peaked above $3500 early in the month, it has trended steadily lower consistently lower for the last three weeks, hitting a 2-month low under $2800 earlier this week.
It's flying a bit under the radar, but there is a critical catalyst for Ethereum coming up at the end of the week. Ethereum developers will make a critical "go / no go" decision on the transition to Ethereum 2.0 on a developer call tomorrow, April 29. If approved, developers will set a date for the network's formal transition to proof-of-stake, which will dramatically reconfigure Ethereum's tokenomics (with some analysts suggesting that total supply of Ethereum may start to fall) and reduce the network's energy consumption by 95%+.
Looking at the chart, this month's bearish channel is now pressing against the bullish trend line off the January lows, hinting that Friday's decision could mark a key "decision point" for Ethereum. Confirmation of a transition to ETH2.0 (likely in Q3) could be a bullish catalyst that could take ETH/USD back above $3,000, whereas a "no go" decision could lead to a break of the 4-month bullish trend line and a retest of the February/March lows near $2500 next.