Ethereum Price Analysis: ETH/USD breakdown eyes $190, ETH 2.0 staking the ultimate store of value

Ethereum price is slightly in the green following attempts to correct from the dip to Friday’s low at $196.22. The prevailing trend is strongly bullish and the expanding RSI means that rapid price actions are still possible in the coming sessions. ETH/USD is exchanging hands at $199.42; slightly above the $198.55 (opening value).

From Monday, Ethereum bulls fought tooth and nail to break the resistance at $220. It became increasingly difficult to sustain gains above $210 after hitting a snag at $216. This called for more losses as bears got more confident. Tentative support areas at $205 and $200 did little to stop the losses. Fortunately, the buyer congestion at $195 came to the bulls’ rescue.

The technical picture has started to turn bullish after the $195 support. The RSI has slowed down the negative gradient movement and is now horizontal at 51. As long as the indicator stays above 50 (average), sideways trading could lead to a consolidation around $200; a situation that is preferable to the buyers as opposed to suffering more losses to $190. Apart from $195, other support areas of interest to Ether include the confluence formed by the 50% Fibo and the 100-day SMA, the 50-day SMA and the zone between $175 and $180.

ETH/USD daily chart

Ethereum token dynamics

Ethereum network is moving closer to the launch of ETH 2.0 which will introduce features such as staking for investors, expanded transaction capacity, Proof of Stake (PoS) consensus algorithm among others. After Bitcoin halving took place, attention has started to shift to Ether.

Experts now believe that the platform future as the powerhouse of decentralized apps is bright. Moreover, staking is one of the features investors are eagerly waiting for. This will allow them to earn an interest on the coins staked in the network. Staking is also good for the network as it makes sure security is heightened while making the network even faster.