Ethereum’s Ongoing Breakout Suggests a Move to $500 Is Possible

Ethereum Expected to Move Towards $500 as Key Levels Are Passed

Ethereum has undergone a strong rally over the past few days as Bitcoin has gained steam. The price of ETH currently trades for $420, $100 higher than the September lows and around 15% higher than the coin was trading at last week.

ETH is expected to push higher in the weeks ahead as it surmounts pivotal technical levels on a short-term basis.

One crypto-asset trader shared the chart below on October 22nd. It shows that because ETH is moving past the “major resistance” of $420, it could be cleared for a move to $500.

Chart of ETH's price action since the start of July with analysis by crypto trader Cactus (@TheCryptoCactus on Twitter).
Source: ETHUSD from TradingView.com

The expectations of a move to retest the year-to-date highs near $490 have been echoed by other market participants.

Jonny Moe, a crypto swing trader, shared the chart below after the move higher. Like the aforementioned chart, it shows that ETH’s recent move to the upside is technically important due to the resistance levels the coin is crossing

“Nice break above the $395 flat top on $ETH. ETH doesn’t always give throwbacks, so a $395 throwback is certainly possible before higher, but I wouldn’t be on it. Otherwise, this looks good for a run back near the $490 highs.”

ETH2 Around the Corner

Ethereum’s strong price performance comes as the ETH2 upgrade, also known as Serenity, has drawn closer.

In a blog post, ConsenSys developer Ben Edgington said that the ETH2 Deposit Contract is expected to be published this week. The publishing of this contract will confirm that the Beacon Chain Genesis, which will launch ETH2 officially, will launch in the next few days.

“Basically, as I understand it, we are good to go: deposit contract in the next few days; beacon chain genesis 6-8 weeks later. (This is not an official statement!). Meanwhile, be careful out there. Many fake deposit contracts and Launchpad front-ends will erupt in the coming days. Look out for the official anouncements: do not send Eth to random contracts; this is not DeFi.”

This upgrade is expected to boost Ethereum’s value proposition as it will give the coin the ability to be staked, restricting supply. On a long-term basis, ETH2 is expected to result in long-term bull trend as the upgrade increases the network’s usability.

Featured Image from Shutterstock
Price tags: ethusd, ethbtc, ethusdt
Charts from TradingView.com
Ethereum's Ongoing Breakout Suggests a Move to $500 Is Possible
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