Ethereum's 2.0 upgrade might be the catalyst for a new bull run

Possible bullish signals pop up as core ETH devs lock funds in Eth 2.0 smart contract
Eth 2.0 deposit contract dropped over the past few days

Data from Dune Analytics reveals that 52,801E TH have been sent to the Ethereum 2.0 deposit contract over the past few days. This amounts to 10% of the 524,000 tokens threshold needed to launch the upgrade into mainnet. As core developers continue to lock up their coins in the contract they are incentivized for a quick launch, which could positively affect prices.

Ethereum 2.0 Network Statistics

Ethereum turns bullish as speculation around ETH 2.0 mounts

To push for scalability on the Ethereum network, the need for ETH 2.0 has gained a lot of attention from the crypto community. Market participants seem to believe that the upgrade may have a bullish effect on the smart contract token as it further pushes its buying pressure to meet up with the 500,000 ETH threshold.

This milestone is important to ETH 2.0 as the launch had been divided into four phases, with the first being phase 0. This part of the network upgrade is meant to facilitate the transition of the Ethereum protocol into Proof-of-Stake.

Taking a look at the ETH/USD chart on a weekly timeframe, we can see the formation of a double bottom pattern which has been confirmed by the breakout from the $364 support zone, with possible resistance at the $800 mark towards the end of the year. This bullish reversal pattern and the build-up of trading volume indicates that a major bullish trend could be close.

ETH/USD Daily chart

On the one hand, it might appear that there has been a decline in the number of ETH 2.0 deposits as shown by CryptoQuant. A Twitter poll reveals that one of the main reasons behind the sudden decline is that market participants are "just not interested" in having their tokens held until phase 1 launches.

ETH 2.0 Deposits

Despite the lack of interest from the Ethereum community to contribute to the development of ETH 2.0, core developers seem committed. Vitalik Buterin, the cryptocurrency’s co-founder, sent 3,200 ETH to the deposit contract address, worth over $1.4 million. Such interest to make sure that the upgrade is delivered in a timely manner will likely play a key role in Ether’s price action over time while speculation continues rising.

Share: Cryptos feed

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.