Ethereum price rally to $2,000 likely fueled by this developmental catalyst in ETH


  • Ethereum network’s developers completed their consensus call, discussing the progress of three key Ethereum Improvement Proposals. 
  • The EIPs are focused on improving the Ethereum blockchain for liquid staking protocols and enhancing the security of Ether. 
  • ETH price tested resistance at $2,000 earlier today and experts noted that institutions are lining up to buy Ether. 

Ethereum price climbed to key resistance at $2,000 on May 6. Ethereum blockchain’s developers recently discussed Ethereum Improvement Proposals (EIPs) to include in future upgrades and boost scalability of the ETH blockchain. 

Also read: Ethereum active deposits explode, wiping out decline from the FTX collapse

Ethereum price rally catalysts

Ethereum, the second-largest cryptocurrency by market capitalization, recently witnessed an eight-month peak in deposits to its ETH2 Beacon Chain contract. An increase in the volume of Ether deposited to the contract implied a reduction in the altcoin circulating supply. Coupled with the recent consensus call of ETH developers, these updates have acted as bullish catalysts for Ether. 

Ethereum network’s developers concluded their consensus call #108, where the focus was on three key Ethereum Improvement Proposals (EIPs), EIP 4788, EIP 6987, and EIP 6475. The three EIPs will improve the blockchain for liquid staking protocols and boost the security of Ethereum. 

EIP 4788 is useful for liquid staking protocols that want to prove new balance updates for their validators. EIP 6987 will prohibit penalized nodes from being elected as block proposers on Ether network and EIP-6475 boosts the compatibility of the network. 

ETH tests resistance at $2,000, what’s next

Ethereum price is currently in an uptrend, climbing towards the bullish target of $2,500. ETH tested resistance at $2,000 today before correcting lower. ETH price is currently above three Exponential Moving Averages at 10, 50 and 200-day. Immediate support is at $1,912, the 38.2% Fibonacci level. 

ETH price could face immediate resistance at $2,104, a level that has acted as resistance for nearly ten months. The next key resistances are the 50% Fibonacci level at $2,231 and $2,341, that acted as support during Ethereum’s run up to $3,500 in mid-2022. 

ETH/USD 1D price chart

ETH/USD 1D price chart 

A decline below key support at $1,774 could invalidate the bullish thesis for Ethereum. Three EMAs and the 23.6% Fibonacci level of $1,517 could act as support for the asset in the event of a decline. 

Analysts at TradingAlpha.io evaluated the ETH/USD price chart and noted institutional buying, represented by an orange thrust candle in the chart below. When ETH price crossed $1,952, institutions lined up to scoop up the altcoin, according to the experts. 

ETH/USD 1D price chart

ETH/USD 1D price chart 

Typically, institutional buying is a bullish sign for Ethereum and hints at a prolonged upward trend in the altcoin. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Zilliqa price poised for a rally on positive on-chain data; bullish technical indicators

Zilliqa price poised for a rally on positive on-chain data; bullish technical indicators

Zilliqa price has broken above a falling wedge pattern, indicating a shift in market structure from bearish to bullish. Bullish divergence on the RSI and the Awesome Oscillator indicators signal a potential reversal and upward movement in ZIL price in the coming days.

More Cryptocurrencies News

MATIC sets for a rally as Polygon Foundation confirms the migration date

MATIC sets for a rally as Polygon Foundation confirms the migration date

Polygon (MATIC) price has broken above a falling wedge pattern, indicating a shift in market structure from bearish to bullish. The Polygon Foundation officially announced on Thursday that September 4 is the migration date for MATIC to POL.

More Polygon News

Top 10 crypto market movers as Bitcoin and Ethereum hold steady ahead of $1.8 billion options expiry

Top 10 crypto market movers as Bitcoin and Ethereum hold steady ahead of $1.8 billion options expiry

Bitcoin and Ethereum hold steady above $64,000 and $3,400 as $1.8 billion in options expire on Friday. WazirX hack of $230 million potentially linked to Lazarus Group ushers correction in Shiba Inu, among other assets. 

More Cryptocurrencies News

Bitcoin Weekly Forecast: Will BTC continue its bullish momentum?

Bitcoin Weekly Forecast: Will BTC continue its bullish momentum?

Bitcoin price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166. By Thursday of this week, U.S. spot Bitcoin ETFs observed cumulative positive inflows totaling $861.50 million.

More Bitcoin News

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin (BTC) stabilized around the $57,000 mark this week, while the German Government persists in transferring Bitcoin to exchanges. Concurrently, US spot Bitcoin ETFs have recorded inflows.

Read full analysis

BTC

ETH

XRP