Ethereum is potentially just days away from breaking out above a key level of resistance against its Bitcoin trading pair.
The world’s second largest cryptocurrency has made a significant 22% gain against Bitcoin over the past three weeks as investors turn bullish ahead of the upcoming Ethereum 2.0 upgrade.
The update will reportedly increase scalability and security, both of which have been key points of criticism since Ethereum’s inception.
During the height of the ICO boom in 2017 Ethereum’s network often became clogged up with transactions, leading to inflated fees and a much slower network.
When blockchain-based game CryptoKitties was released transactions took up to one hour with some costing as much as $50.
If Ethereum can prove that its network is in fact scalable, it will be well situated as mass adoption edges closer.
From a technical perspective Ethereum has formed a symmetrical triangle against Bitcoin since its 0.0286BTC high on February 18, with it testing the upside of the triangle in late April as well as over the weekend.
Breaking above this key level of resistance would equate to a measured move to around 0.03BTC, which would be the highest point its been since this time last year.
In terms of its value against the US Dollar, Ethereum is grinding against the $248 level that was the top of a short-term rally in March, breaking above that would pave the way for a move towards $269 and $290.
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Ethereum was launched by Vitalik Buterin on July 30 2015. He was a researcher and programmer working on Bitcoin Magazine and he initially wrote a whitepaper in 2013 describing Ethereum.
Buterin had proposed that Bitcoin needed a scripting language. He decided to develop a new platform with a more general scripting language when he couldn’t get buy-in to his proposal.
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