Ethereum saw a sharp rise in Q3, largely due to the prospects of the Ethereum 2.0 testnet Madella launch that took place on August 4th. The launch of the mainnet in Ethereum is scheduled for October-November this year.
From August 1st to August 12th, Ether followed a horizontal trend, consolidating above $ 378. After that, it quickly rose to $ 431.5 and traded between $ 413 and $ 447 over four days, gradually declining to $ 389. Ethereum price dropped drastically with the news of a glitch in Madella that put almost all of its nodes out of service. However, the nodes were quickly recovered and the test network was recovered.
Ether started to rise at the end of August and rose to $ 488 on September 1st. However, the gains did not last long. Between 2-5 September, Ether dropped to $ 307. The price tried to recover from this point but Ethereum then fell to $ 358.5 over the next few days and consolidated on it.
Bear Market Is On The Way For Ethereum
Now that the 0.5 Fibonacci level has become resistance, it has become a new upside target for Ethereum. Ether remained below the 0.5 Fibonacci level, a clear indication of the continuing downtrend in the Ethereum market.
Surprisingly, according to the CoinMetrics report, the record cumulative Ethereum transaction fees of $ 350 million from the beginning of the year on September 29 and the highest average gas fee reached on September 2, $ 8.25, would not allow Ethereum to reverse the downtrend. did not provide concrete assistance.
More downward price movements stand out as the most likely continuation scenario, with the clearly visible downtrend replacing Ethereum’s uptrend from July 18th to September 1st. If buyers want to correct the continuing downtrend, they must first prevent further dips by consolidating their positions above the 0.382 Fibonacci level.
Impact of the Ethereum 2.0 Update
The launch of the Ethereum 2.0 network could be positive for Ethereum as it is expected to double its current throughput, an average of 15 transactions per second. This may be what Ethereum users need the most these days due to the most intense levels of congestion in the Ethereum network, due to the rise in the DeFi industry that has greatly impacted Ethereum’s network. If Ethereum 2.0 is implemented successfully and in accordance with the program, it can positively reflect on Ethereum’s market positions.