Ethereum is about to implement a major update to its blockchain. So far, the most well-known for investors is the launch of EIP-1559 and the transition from proof of work to proof of equity. Therefore, there are reasons to continue to bet on Ethereum before the introduction of these updates, or bet on value investment beliefs in the long-term investment field.
ETH2.0 upgrade soon
ETH 2.0 is a set of major upgrades to the Ethereum network, making it more scalable, safer and more energy efficient. At present, Ethereum only supports about 15 transactions per second. These transactions are already twice as fast as Bitcoin, but ETH 2.0 aims to become more scalable by increasing the transaction speed to 1,000 transactions per second.
ETH2.0 aims to make 51% attacks more difficult and more secure by changing from proof of work to proof of equity. 51% attacks are theoretically possible in ETH 2.0, but controlling 51% of ETH seems to be much more difficult because you need to actually own so much ETH. Unlike the current proof-of-work system, here you can use 51% of the computing power to attack the network.
The proof-of-work mechanism currently used by ETH consumes too much energy, because with the development of the network, more and more miners are needed. The goal of ETH2.0 is to improve energy efficiency by adopting POS.
ETH2.0 aims to use sharding technology to split its blockchain into 64 shard chains after the upgrade, which will allow multiple transactions to be run on each single shard chain. This is very suitable for scalability, as the new ETH network may handle thousands of transactions in each part depending on how much the network grows.
ETH still outperforms BTC
First of all, there is no doubt that ETH is currently performing better against BTC. The latter is considered the least volatile cryptocurrency. Of course, “less volatility” here still means very unstable. After all, we are in the cryptocurrency space.
We know that many people will choose to invest directly in Ethereum and are therefore more interested in the performance of its USD trading pair. The price of Ethereum has been moving sideways between US$1,700 and US$3,000 since the crash in May.
However, unlike Bitcoin, Ethereum’s drop test does not seem to be so frequent. Another difference is that ETH did not experience a longer sell-off phase at the top of the market. In the long run, the valuation of ETH depends on its own upgrade progress. However, we still have to predict short-term price trends. We can see that the price of Ethereum is forming a higher pressure level, and its initial upward structure is also suitable for the behavior pattern of the price in the range of shocks. Usually, long and short will be tested alternately here until a trend break occurs. Therefore, the suggestion at this time is to wait for the breakthrough direction.
Where will Ethereum rise?
Based on current market conditions, we expect the price of Ethereum to reach at least the upper limit of $2,400 in the next few weeks. If the breakout occurs and the price goes up, it is foreseeable that the initial top of Ethereum will be between $2800 and $3000. Failure to break through this range will be regarded as a so-called structural failure, which will become another obvious sign of a turnaround.
If there is a downturn, the price of Ethereum will almost certainly fall to the lower limit of around $1,730. Of course, the premise of all this is based on the fact that the price of Bitcoin remains range-bound or breaks upward.
Of course, it must be emphasized again that Ethereum is generally trading in an extremely optimistic context due to the upcoming major updates. Therefore, if the Bitcoin price once again restores investor confidence in the market through a clear and strong upward trend, it can be concluded that the price of Ethereum will reach a new high.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/ethereum-price-forecast-what-changes-will-happen-to-eth-in-july/
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