Ethereum looks set to test the $600 level of resistance again this week after rising by 20.94% from Thursday’s low of $481.
The world’s second largest cryptocurrency by market cap is currently trading at $577 following a touch of $593 overnight.
From a technical perspective, until a bearish reversal is confirmed on higher time frames, Ethereum remains in a bullish formation with yearly highs above $622 beginning to beckon.
The recent rally has coincided with Bitcoin’s price-hike, with it rising to as high as $19,400 as it attempts to print a new all-time high before the end of the year.
Bitcoin’s performance, coupled with a rise in popularity of DeFi lending products, has been attributed to Ethereum’s surge over the past few months, although the ETH 2.0 upgrade is by far the most pertinent factor.
The upgrade is scheduled to take place this week and will focus on its migration to a proof-of-stake consensus algorithm.
Earlier this month, Ethereum users stake more than 837,000 ETH tokens ahead of the upcoming launch, equating to around $470 million.
This show of confidence in the network and its developers, which in turn provides a level of confidence to investors as it means that Ethereum’s scalability issues may finally be solved.
Short-term targets for Ethereum remain at $625, $701 and at $826 while downside levels of support are at $563, $487 and $445.
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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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