- Ethereum 2.0 release becomes apparent with the launch of the final Medalla testnet.
- Ethereum and Bitcoin see an overwhelming increase in on-chain activity as markets price roll upwards.
- Ethereum 2.0 launch could be Ethereum’s one-way ticket to $1,000.
Ethereum price action in the last week of July and the first week of August left everyone tremendously surprised. The journey of breaking barriers was not only a success but also helped bring back attention to other products within the Ethereum market such as the futures. As we will discuss later in this article, on-chain activity has also surged massively.
In the meantime, Ethereum is trading at $394 after a lower correction from levels closer to $400. Ether traded highs at $415 on Sunday last week. This move saw Ethereum make a comeback to levels it had not seen since August 2018. In 2019, Ethereum only managed to trade highs around $361.
Ethereum 2.0 testnet debuts with 20,000 validators
Ethereum developers finally released the final as well as official public testnet for the much-anticipated Ethereum 2.0 network. The test network dubbed Medalla is the final step of phase 0 of the long journey to the launch of Ethereum 2.0 hopefully by the end of 2020.
According to CoinDesk, more than 20,000 validators have joined Medalla. Impressively, about 650,000 ETH has already been staked in the testnet. Note that, every testnet has used its own token that is not in any way equivalent to the actual ETH. Medalla is a multi-client protocol that currently supports Prysmatic labs’ Prysm, ChainSafe’s Lodestar, PegaSys’ Teku, Status’ Nimbus and Prime’s Lighthouse.
Grayscale Ethereum Trust files to become US SEC reporting company
New York-based fund manager, Grayscale wants its Ethereum Trust fund to be accepted by the US Securities and Exchange Commission (SEC) as a reporting company. Grayscale Bitcoin Trust was given the mandate to be a reporting company to the SEC in January. According to a recent report by Grayscale the Ethereum Trust currently holds more about $745 million in Ether. Bitcoin Trust is the leading among its crypto holdings with a whopping $4.7 billion in BTC. As per the announcement made by Grayscale:
This is a voluntary filing that, if it becomes effective, would designate the Trust as an SEC reporting company and register its shares pursuant to Section 12(g) of the Securities Exchange Act of 1934, as amended.
Ethereum on-chain activity swells
The surge in cryptocurrency prices in the last couple of weeks especially for Ethereum and Bitcoin has caused a positive ripple effect in on-chain activity for the world’s two largest cryptoassets. The increase has been attributed to decentralized applications (dApps) and blockchain casinos.
These dApps mainly execute on Ethereum blockchain by paying gas fees hence the higher activity within the network. Daily transactions on the network are closing in on all-time highs according to the data by BitInforCharts. Besides, on-chain transfers are said to have already clocked 1 million per day.
Ethereum technical analysis
Ethereum price appears to be settling for consolidation a few days after trading new yearly highs at $415. Support at $400 held for a short while but profit-taking investors are arming the bears who continue to force ETH towards the next support at $390.
The weekly chart shows the RSI holding comfortably above 70. This indicator has been overbought since July 21. This means that while buyers are in the driver seat, their rain could soon end with bears likely to take over.
On the other hand, the MACD shows that buyers have an upper hand. In addition to having a bullish divergence, the MACD is still grinding gradually upwards. This means that that Ether is in the hands of the bulls only that it lacks a catalyst and the volume to sustain gains to $500.
Ethereum has already proved that it has the ability to rise to new yearly highs. As the network draws closer to the launch of Ethereum 2.0 which will call for staking among the members of the community. ETH/USD could get the ultimate boost not just above $500 but towards $1,000. For now, support above $390 is key for the bullish case above $400 as we usher in the weekend session.
ETH/USD weekly chart
 (78)-637323886704570228.png)
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
Editors’ Picks
PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange
Pendle (PENDLE) price is among the top performers in the cryptocurrency market today, posting double-digit gains. Its peers in the altcoin space are not as forthcoming even as the market enjoys bullish sentiment inspired by Bitcoin (BTC) price.
Ethereum shows signs of a potential rally as suspected Justin Sun wallet buys heavily
Ethereum's (ETH) recent price movement hints at a potential rally despite ETH ETPs recording outflows. The recent price improvement follows the fourth Bitcoin halving and a suspected Justin Sun wallet purchasing large numbers of ETH.
Floki poised for growth after listing on Revolut
Floki's (FLOKI) team announced in an X post on Monday that the meme coin would be listed on the popular neobank and Fintech platform Revolut. Floki could rise further following key partnerships to boost retail usage.
Jupiter DEX second Launchpad vote concludes, JUP price rises 5%
Jupiter, a Solana-based decentralized exchange (DEX) has completed the second launchpad (LFG) vote to identify the two projects that will debut on its platform. On March 30, the aggregator network had unveiled its Core Working Group (CWG) budget proposal voting.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?