Ethereum Breaks $ 2,000 What Should You Prepare For?

Ethereum has struggled a lot over the past few months. Following the general market crash pattern over the past few months. The coin hit a new high of over $ 4,000. Before falling again after the market crash over a month ago. Within a few weeks you will lose over 50% of your value. But still the coin held out.

A week ago, Bitcoin fell below the $ 30,000 stronghold. After that, Ethereum lost its foothold in its $ 2,000 stronghold and fell below.

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At first it looked like the coin was not going to recover. The entire market seemed to sink further into a bear. But all is not lost.

Ethereum has since regained some control. The price is back in the green area.

Bull run after $ 2,000?

A bull rally for Ethereum does not seem unlikely at this point in time. Projects are running on the Ethereum blockchain that promote the use of the coin. Ethereum’s scalability alone puts it in a remarkable position to post further recovery. Projects like ETH 2.0 will completely revolutionize the crypto industry.

Once the lower fees are implemented, it means the small transaction bottleneck is resolved. Lower fees mean the coin can be used as a currency rather than a fixed asset.

Ethereum breaks $ 2,000 | Source: ETHUSD on TradingView.com

$ 2,000 has been the main breakpoint for Ethereum since the decline. Traders have struggled to keep the coin above this point. It is speculated that another bull rally is more likely above this price point than below.

Staking is also another big driver for Ethereum. People can use their ETH in liquidity pools and be rewarded with tokens. For this reason, more and more people are buying ETH Coins only to stake out.

Staking from ETH is also less complicated than trading. It offers investors a low entry point to get into the market without risking too much. These tiny entries, albeit small individually, add up over time to add to Ethereum’s market cap.

Ethereum London Hard Fork

Ahead of the London hard fork, Ethereum has seen a slight spike in the past few days. The London hard fork is due to take place in July. It is planned to be packaged with the EIP 1559 as part of an effort to scale the network.

This is to make transactions easier for users. With a proposal, the gas charge is sent to the grid as a kind of incineration. With an optional tip paid to miners.

Obviously, this went hand in hand with resistance from the mints. But users and investors are equally enthusiastic about it.

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High gas charges have been onerous for some time as the networks are overloaded with the large number of new tokens issued. The London hard fork is part of the plan to address this congestion problem.

Before that there was a hard fork in Berlin. It took place in April of that year.

According to market speculation, there could be another rebound on the horizon if ETH holds the $ 2,000 resistance point.

But with so little momentum, it is possible that the coins will fall under it again. This could mean that the coin will suffer further downturns before another rebound occurs.

Ethereum is still holding a price above its previous all-time high. If it breaks, the next major resistance point would be at $ 1,500.

Developments in Ethereum are still ongoing to ensure full scalability of the entire network. A complete overhaul to ETH 2.0 is planned for 2022.

Featured image from Press Insider Daily, chart from TradingView.com

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