Ethereum (ETH) continues the historical metamorphosis of its network, which will transition from Proof of Work (PoW) to Proof of Stake (PoS) consensus. To start the chain, the deposit contract must receive 524,288 ETH from validators by November 24, a total of 16,384 deposits (32 Eth each).
According to analysis, a little more than 50 thousand ETH has been deposited for the ETH 2.0 update at the moment. This shows that it is 10 times lower than the required 524,288 ETH.
There may be a delay in initiating PoS due to insufficient deposits. This can lower the token value of ETH as before, when Ethereum postpones major updates. There are a few other reasons why Ethereum holders are not in a hurry to deposit their tokens, the first being that the price of Ethereum has soared in the past weeks, the other is the growing number of DeFi projects and, according to popular metrics, 8.5M ETH is locked in DeFi.
According to a share by Agah Sesli, one of the important names of the local cryptocurrency community, the best prospect for ETH 2.0 is January 23. It is predicted that the transition will be completed on January 23, based on the amount sent so far.
There Are Those Waiting For Ethereum To Rise
Investors and traders want to get the most out of trading this token against the US Dollar as ETH / USD is showing new bullish signals. As seen in the chart, ETH / USD formed a symmetrical triangle pattern. As a general rule, you should follow the price action of the pair and expect a break from both thresholds of the triangle. The breakout could be confirmed at any time in the near future, as the price is now near the upper threshold.
Although Ethereum’s price increase played an important role, it was not mainly supported by the ETH 2.0 transition, but instead by the weakening USD and uncertainties during the US Presidential Election. Although the election is concluded, the process is still not over, and tension continues, especially over Biden’s incentive plans and Trump’s lawsuits, so the price of Ethereum may continue to rise.
Delaying the chain release can also have a negative impact on Ethereum. The key level to watch if the break from the ascending channel is confirmed is $ 477-500, if the price breaks the lower threshold of the triangle, the price could drop to $ 431 and below it $ 416.