Ethereum Market Update: The Bulls Are Winning, ETH Trades Above $300 (Zycrypto)
It is a new week and a new trend for Ethereum. The digital currency has been recording meaningful gains in the last couple of hours and attaining a big break as it severed the resistance area at $300. At press time, ethereum is trading at $306.06 according to CoinGecko and all signs point to a continued rally.
Ethereum Outshines Bitcoin
The second largest coin with a market capitalization of $32.7 billion has had gains of up to 6.76% in the last 24-hour period. At present, ethereum is the second best performing cryptocurrency in the top 10 coins with Tron leading with the highest gains of 9.39%.
Via CoinGecko ETH has outperformed bitcoin which is recording gains of 2.01% at press time. Ethereum tested above $300 and this excited the bulls as the price rallied towards a key resistance area $310, where it hit a snag.
A new weekly high was attained at $311. The price, however, experienced a slight correction and is trading below $310. On the bright side, the bears seem to be having a hard time and it’s likely that any further price decline will find support at the $300 or $298 levels. Nevertheless, a rally above $310 is crucial if Ethereum’s recovery is to gain traction.
Ethereum Plans On Reducing Issuance Ten Times By 2021
Justin Drake, a researcher at Ethereum Foundation recently revealed plans to decrease the amount of ETH issued by 10x. He stated, “Here’s a possible timeline (dates likely totally wrong!) highlighting the key milestones: January 2020: beacon chain launch. June 2020: eth2 light clients production-ready. November 2020: eth1 fork #1 to have its fork choice rule honor eth2 finality (conservatively, no issuance reduced). March 2021: eth1 fork #2 to reduce issuance by 10x.”
The amount of ETH issued will reduce from 2 ETH per block to 0.22 ETH per block. Additionally, this project is crucial to Ethereum’s next big move from its Proof of Work (PoW) algorithm which is both time and resource consuming to Proof of Stake (PoS), which will have stakeholders in the ethereum blockchain instead of miners.
It is difficult to estimate the exact dates when this project will be finalized and effectively launched due to some underlying non-technical issues but as long as the demand for ethereum is maintained or grows, the planned issuance reduction will be crazy bullish for ETH’s price in the long run. In the medium-term, ethereum looks bullish and more gains can be expected.
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