Ethereum is the second-largest cryptocurrency, and it has been in the news because of the Ethereum 2.0 upgrade, where it will switch from Proof of Work to Proof of Stake consensus. One of the Ethereum developers announced that they have successfully launched the Hard Fork upgrade, which means they are getting one-step closer.
The green MACD histograms are due to the recent news from Meta (earlier Facebook). According to a media report, they will roll out NFTs for US creators, and it will be in the Beta stage where they will use Ethereum and Polygon networks. After this news, the trading volume of Ethereum jumped significantly in the last week.
Indeed, Ethereum is one of the most fundamentally strong cryptocurrencies, and we will not wonder if it will take the place of Bitcoin in the future. After this upgrade, Ethereum will be more secure, flexible, scalable, and eco-friendly than its previous version.
At the time of writing, ETH was trading around $1055. ETH broke the trend line around $2500. After that, it has been consolidating in a range and has also broken the $1600 level. Despite the good news, it has been in a downtrend concerning its price. For deeper insights on where the Ethereum price is headed, check the latest Ethereum price prediction.
Though we can find bullishness in some technical indicators, it is tough to predict how long it will sustain. On the daily chart, the RSI is around 32, with a bullish crossover in the MACD indicator. Moreover, candlesticks are also forming around $1055, which is the baseline of the Bollinger Bands.
On the weekly chart, ETH has been in a downtrend since November last year. It is a significant level because if it turns green, it may create a lower high than its previous lower high, suggesting bearishness despite the recovery of the Ethereum price. However, if it breaks the previous lower high, we can suggest it can turn to bullish for the long term.
Indeed, it is a good time to accumulate more coins because Ethereum uses eco-friendly consensus to increase security. It will provide a good return in the long term, but you have to hold it for at least a few years.
In the short term, we think the price will consolidate between a range. You can take the benefits, but it will be risky to trade. Thus, a long-term investment would be more suitable from the current price level.
