Ethereum Price Analysis: ETH/USD bears flip on the bulls, downside unstoppable towards $240
|- Ethereum price fails to sustain gains towards $300 instead explores levels under $260.
- Ethereum 2.0 release still on track for 2020 even as developers work through the phases.
Ethereum bulls once again failed to rise above the selling pressure at $84. Instead, the price dived beneath the key support levels at $270 and $260, respectively. Besides, there is still is potential for lower correction likely to test $240.
At the time of writing, ETH/USD is exchanging hands at $259. The bulls are working hard to reclaim the ground above $260. However, technical analysis shows that there is going to be limited movement northwards unless Ethereum is boosted by a unique catalyst or a positive change in the sentiments among investors.
Ethereum technical picture
Applied technical indicators currently sent bearish signals. The Relative Strength Index (RSI) has retreated from the overbought region. The downward sloping motion shows that the bears are in control and continue to gain traction.
If the buyers manage to keep the support at $260, there is a possibility that Ethereum price will settle in sideways action otherwise known as consolidation before any form of breakout comes.. The momentum indicator supports the sideways trading scenario by the horizontal movement at 78.
ETH/USD daily chart
Ethereum 2.0 2020 release on track
The launch of the new protocol to execute smart contracts in the Ethereum network is still on track, likely to hit the market in 2020. According to the co-founder of Ethereum, Vitalik Buterin, Ethereum 2.0 will accord users with increased capacity supported by sharding as well as scaling. The protocol will also bring into the picture privacy features under the new Proof of Stake consensus algorithm. Buterin explained the four phases that must be accomplished before the full rollout of Ethereum 2.0 at The Hong Kong Jockey Club University of Chicago Academic Complex:
Phase 0, get proof of stake running. Phase 1, sharding, so scalability, but starting with data. Then Phase 2, add stake and execution, which basically just means computation and smart contracts. And Phase 3 is basically other stuff that we want to add down the line.
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