ETH 2.0 Upgrade Could Boost the ETH Prices to New All-Time-Highs

The cryptocurrency market is finally getting intro track with altcoins making a move to the upside. It was just Bitcoin that had been surging higher and higher, which mildly broke the all-time highs as well. Now, with BTC crypto taking a halt around its highs, altcoins, including Ethereum, have begun with their impulsive moves. Of course, not many have headed to their all-time high as of yet, but the momentum can certainly help them reach the highs.

Speaking of the current price action of altcoins, almost all have taken a sudden dip. Initial thoughts were that the move was simply minor profit-taking in the market, but the interpretations changed as the market continued to march lower.

Ethereum, for instance, which was moving in line with Bitcoin, took a major plunge today from the resistance it had formed a few sessions ago. Although the momentum of the buyers on the way was strong, the sellers at the supply had other plans. The dip came in quite significantly, which brought the prices back to the support levels.

ETH 2.0 Upgrade Continues to Cut Down Supply

It is a known fact that Ethereum cryptocurrency has no cap on the number of coins that can be minted. To bring equilibrium in supply and demand, ETH 2.0 upgrade was announced. 

Over 118 million Ether coins are now in circulation. Despite the fact that the coin has no supply limit, don’t anticipate that figure to grow considerably. The quantity of ETH would fall by 2% each year following the switch to proof of stake. With each new block, the blockchain will begin to burn more Ethereum than it creates if present rates remain.

The year 2021 has been a historic year for Ethereum cryptocurrency as the team brought by far the most significant upgrade in Ethereum this August. EIP-1559, an Ethereum reform proposal, was included in the London hard fork, which increased the batch size of each block to cope with data traffic and annihilated transaction fees rather than sending them to miners.

The idea was to apply downward pressure to the crypto that has a circulation volume 6 times that of BTC. And the team has already progressed far to achieve the goal. Speaking of current figures,  ETH issuance has decreased by 57 percent to date, with over 630,000 ETH destroyed and about a million distributed to the miners.

Ethereum Gears Up for Altair Upgrade

The day October 27, is indeed a big one for Ethereum (ETH), as the network is all geared up to bring in the next update for Ethereum 2.0 Beacon Chain, Altair. With this upgrade, ETH 2.0 will become a completely proof-of-stake (PoS) network, which the ecosystem has been planning for over a year.

Altair is a version of the Beacon Chain that adds support for lightweight clients, pre-validator idleness leak reporting, a boost in cutting severity, and smoothness to validator incentives, according to an Ethereum Foundation blog post outlining the work. The blog also mentioned that t  this update is a “warm-up upgrade” for the Beacon Chain and its customers. The upgrade will essentially introduce numerous major improvements to the Ethereum 2.0 infrastructure.

Because the monetary stakes are now minimal, it is indeed logical that this update is being used as a “warm-up” for subsequent Beacon Chain enhancements. Because the node operators will have previously gone through a chain upgrade at the same time, all further upgrades leading up to the Integration should go more easily.

Although the Altair update may not have much impact on Ethereum’s end users, it is extremely important for developers and other community members who are looking forward to the Integration.  Earlier this month, about forty officials from the ETH and ETH 2.0 projects, the Ethereum Foundation, and ConsenSys successfully established a testnet running Proof-of-Stake with several Ethereum clients of both versions.

Final Consolidation in Ethereum Prior to Breakout?

As mentioned earlier, the markets are back on the bull run, with the altcoins taking charge as of late. Ethereum, the largest altcoin, has followed to become an outperformer.

Shedding light on the entire trend, the ETH market has never essentially gone into a downtrend, as there is no evidence sequence of lower highs and lower lows.

But as the prices transited to the upside since August, a clear design of an uptrend with higher highs and higher lows is in motion. Bottoming out at $1750, the price of ETH crypto has surged all the way up to $4300 in a couple of bullish impulsive pushes. The market did touch the ATH but did not make a new high as of yet.

As of writing, the ETH market took resistance for the second time, which brought a major dip in the market to levels of $4000. Considering the strong momentum of the sellers, an instant recovery is too much to expect for. However, there is a high probability for the price to take support around $3,750 and a potential ride for a new all-time high.

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