The future of the second-largest cryptocurrency is hampered by the US dollar index’s recovery. The price of Ethereum (ETH), fell only slightly on Thursday.
Ethereum Consolidates
The cryptocurrency market was mostly quiet on July 21 as traders took time to process recent gains and record profits following the biggest relief rebound since June.
Even though rumors about the cause of this recent surge have circulated, the Ethereum Merge remains at the top. Market rallies increased after the initial date for mainnet Merge was set at Sept. 19.
According to TradingView data, the Ether price (ETH) climbed to $1620 on July 20 and then fell to $1463 at early trading hours of July 21. However, it has since rebounded above $1500 support.
ethereETH/USD back around $1,500. TradingView
Following the initial price spike caused by the Merge news, here is what various analysts anticipate will happen as Ether’s mainnet switch to proof-of-stake draws near.
Market analyst Rekt Capital posted the following chart showing the significance of Ether’s weekly finish over $1,300 and subsequent rise higher, describing the retreat on July 21 as a good development.
Rekt Captial said:
“Though #ETH could just continue higher to reach the upper orange region, it would be healthier for ETH to dip. Such a retest of the lower orange area would only increase probability of continuation.”
This is the outlook for the future. The pullback of July 21 increases the likelihood that the price will rise to $1700 within the next few days.
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Vitalik shares his thoughts on the future of ETH
The co-founder of Ethereum detailed his plans for future developments on Thursday at the Ethereum Community Conference in France that go far beyond the network’s switch to proof of stake. The upgrade—often referred to as “the merge” since it will integrate the Ethereum mainnet with the proof-of-stake beacon chain—is actually the first in a series of modifications that are being planned.
Ethereum will then go through additional improvements that Buterin refers to as the “surge,” “verge,” “purge,” and “splurge” after the merging, which he believes is extremely close because “the only thing left to do is do a merge on Ropsten [test network],” he said during the conference. Buterin stated that the constant updates to the Ethereum network are due to a goal of strengthening the network.
Ethereum is expected to only reach 55% completion after integration. This will occur in September.
It is believed that Ethereum sharding has caused the increase in demand. According to the Ethereum Foundation this scaling solution will lower the costs of rollups and bundle transactions, make them more accessible, make it cheaper to use layer-2 blockchains, make it more cost-effective, simplify the operation of nodes that safeguard the Ethereum network, and reduce their complexity. Buterin said that the surge was due to Ethereum sharding.
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Featured Image from Shutterstock. Chart from TradingView.com