Ethereum Price Forecast – Choppy Session in Play, Brace for a Breakout!
The ETH/USD was closed at 1825.79 after placing a high of 1845.32 and a low of 1729.05. the Ethereum prices surged on Thursday and reached 1
Arslan Butt•Friday, March 12, 2021•2 min read
ETH/USD closed at 1825.79 after placing a high of 1845.32 and a low of 1729.05.
Ethereum prices surged on Thursday and reached 1800 level despite miners’ protest against the upcoming upgrade in the network. The scheduled upgrade to the Ethereum network that will start destroying ether coins raised anger amongst most miners of the cryptocurrency as some analysts estimated that this upgrade named Ethereum Improvement Proposal (EIP) – 1559 could cause up to 50% loss in the profits of Ethereum miners.
The said upgrade EIP-1559 is scheduled to go live in July and significantly impact miners’ revenue. This upgrade seeks to replace the existingh bidding–based on the Ethereum network with a fixed price and burn mechanism. Under this mechanism, the users will send a base transaction fee to the network that would destroy or burn the Ether tokens. It will reduce the number of Ether coins in circulation. This has led to many Ether miners’ anger as it would slash their fees, and those angry miners have signaled opposition to this upgrade as a protest by planning a 51-hour show of force for April 1. The miners will redirect their mining power to Ethermine.org, a miners’ pool for 51 hours on April 1. It will show that miners have enough power to alter the network themselves.
Some miners have shown willingness to go on strike by shutting down their mining power to disrupt the Ethereum network. However, despite these negative developments surrounding the Ethereum network, the cryptocurrency ETH/USD rose on Thursday and posted gains for the day.
The rise in Ethereum prices could be attributed to the effects of token burning as it will reduce the number of ether coins in circulation. The high gas fees of the Ethereum network have urged many users to abandon the blockchain in search of alternative blockchains with less fess and fast transactions. To overcome this issue, the network has announced a planned upgrade named EIP-1559.
Furthermore, the co-founder of Ethereum, Vitalik Buterin, said that he sees the Ethereum network scaling by a 100 factor and predicted that the Optimism’s Layer 2 solution would be released in the coming two weeks. He was confident that the layer-2 solutions would sustain the network before the establishment of sharding. He continued to forecast that Optimism was set to launch its fully EVM-compatible Virtual Machine in a month. He also shed some light on rollups as an interim scaling solution to improve the existing scalability issues related to network congestion and high gas fees.
Sharding is a layer-1 solution apart from the layer-2 resolution introduced by rollups. The Sharding protocol and Ethereum 2.0 are expected to release alongside, and Buterin has claimed that rollups will be enough to increase the performance of Ethereum by 100 times.
Daily Technical Levels:
Support Resistance
1800.51 1835.15
1777.42 1846.70
1765.87 1869.79
Pivot Point: 1812.06
The ETH/USD pair forms three black crows on the four hourly timeframes at 1,774 level, and it’s likely to drive more selling in the pair. On the lower side, ETH/USD is likely to find support at 1,694 areas and a resistance level of 1,880. Simultaneously, the bullish breakout of 1,881 level can lead the price towards 1,989 level. The MACD and RSI are also in support of a selling trend; therefore, we can extend a continuation of selling in the ETH/USD pair. On the lower side, ETH/USD pair may target 1,694 today. Good luck!
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.
His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.
His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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