Ethereum Price Analysis: ETH aims to rise above $475 following chain split drama – Confluence Detector
- More than 52,800 ETH has been locked up in the Ethereum 2.0 deposit contract.
- Ethereum went through a chain split this Wednesday after infrastructure provider Infura faced technical issues.
Ethereum has had a tumultuous 48 hours as the network preps for the ETH 2.0 upgrade. Let’s quickly recap all the major events surrounding the smart contract protocol before reading the confluence detector tool.
Ethereum 2.0 deposit contract update
Data gathered from Dune Analytics reveals that 52,801E TH have been sent to the Ethereum 2.0 deposit contract, amounting to 10% of the 524,000 tokens threshold needed to launch the upgrade into mainnet. As core developers continue to lock up their tokens, it will speed up the network grade and encourage a quicker launch.
Unannounced hard fork causes panic
Ethereum infrastructure provider Infura faced significant challenges this Wednesday, which caused the community to go into panic mode. It looks like the company working silently on a dormant bug, and the resultant update triggered a fork from a buggy chain to a good one. In essence, this resulted in an unannounced fork.
Nikita Zhavorinkov, the lead developer from Blockchair, explained that the code change silently introduced by ETH developers split the chain from block 11234873. Those nodes that failed to upgrade on time got stuck in a minority chain.
Binance CEO, Changpeng Zhao, tweeted that the chain split has caused the exchange to block ETH withdrawals temporarily. He assured users that their funds are safe.
There was a possible ETH chain split at block 11234873. Etherscan and Blockchair are showing two different chains and data after this block. We’re resolving now but have temporarily closed withdrawals. Funds are #SAFU.
— CZ Binance (@cz_binance) November 11, 2020
eg,https://t.co/nhaCTcpacuhttps://t.co/bYfVAIkBCx
Crypto.com also paused Ethereum and ERC20 deposit and withdrawals citing ETH network issues.
ETH climbs up as network preps for ETH 2.0
Between September 20 and September 23, the price dropped by 19.50%. Since then, the price has been on an upswing going up from $320.50 to $460 at the time of writing. However, the price has met major resistance, which has managed to reject the bulls once. The 50-day SMA has crossed above the 100-day SMA to form the bullish cross pattern.
ETH/USD daily chart
Looking at the daily confluence detector, ETH faces two strong resistance barriers at $463 and $475. If the buyers gain enough momentum to break past the $463 barrier, they should reach $475. Any break above that take Ethereum into the $500-zone.
ETH daily confluence detector
Three healthy support walls protect the downside. $455, $420 and $400. These levels look strong enough to absorb a lot of selling pressure. A break below these levels will see the price fall to $385, which sees a confluence of the 50-day and 100-day SMAs.
Author
Rajarshi Mitra
Independent Analyst
Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.
