Following last nights sudden price surge for Bitcoin and the overall cryptocurrency market, Ethereum has followed suit and could soon break a new yearly high if the growth continues. Ethereum is up to $267.36 against the U.S. dollar (USD) and hit $271.09 earlier, close to it’s May 16th high of just over $280. Earlier this week it looked unlikely to break through resistance at $260 after failing to break the level for the third time.
Ethereum 2.0 is coming, but not tomorrow
There has been much hype surrounding Ethereum 2.0, the next significant upgrade for the network which hopes to give it a shiny new operational base. However, Ethereum researchers and analysts have warned investors that the process will be rolled out in several phases that could take “several years”.
A blog post by crypto assets dealer SFOX outlined the Ethereum 2.0 process over a three-year period. It begins by noting the significant limitations that the network suffers, mostly related to speed and scalability. With the ability to only process 15 transactions per second, Ethereum needs to greatly improve upon this number if it hopes to reach its full potential and support millions of users across its multiple decentralized applications (dApps).
It goes on to reveal stages in which Ethereum 2.0 will be implemented, including various different ‘chains’ over the next three years in what Ethereum cop-founder Vitalik Buterin says will eventually become a “World Computer”. The two main goals of Ethereum 2.0 are the introduction of a proof-of-stake (PoS) consensus method and ‘sharding’ to improve speed.
Ethereum (ETH) vs US dollar (USD) Price Analysis
As many analysts predicted, ETH/USD has now broken upwards out of its bull pennant flag pattern it was trading in the past few weeks. This opens up a clear avenue towards $300 for the ETH/USD price should the upward trajectory continue. With the rest of the cryptocurrency market experiencing similar gains and sentiment in the community strong, further gains seem highly likely at this point.
Trading View trader ‘Sherem’ has a strong bullish case for Ethereum going forward. In the long-term, resistance at $300 is naturally going to be strong and could result in a retracement to support at the previous $276 resistance level. However, if fresh buying power surfaces in early June then a break above $300 could take ETH all the way to initial resistance at around $374 and stronger resistance at 431.
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