Ethereum. Is the revolution inevitable?

25 May, 2022

Start date

15 Jun, 2022

End date

2 800

Target Price

Buy

Tip

Instrument: ETHUSDT

Make money on an idea!

As early as August of this year, the Ethereum blockchain may stop mining. This will happen due to a switch from the Proof-of-Work (PoW) model to the Proof-of-Stake (PoS

As early as August of this year, the Ethereum blockchain may stop mining. This will happen due to a switch from the Proof-of-Work (PoW) model to the Proof-of-Stake (PoS) one. The upcoming change was announced by the altcoin's creator Vitalik Buterin at the ETH Shanghai Web 3.0 online conference. The transition will result from an event called 'The Merge', after which the core Ethereum network will join the PoS Beacon Chain.

Analyst's technical analysis background of the idea

Altcoin prices have rebounded from yearly lows and have consolidated above $2,000. Ethereum is a good buy above $2,200 with a near-term profit-taking target at $2,800

Analyst's fundamental analysis background of the idea

Ethereum has been operating on the PoW consensus since its creation, with work on the transition to PoS taking almost seven years. The last step before The Merge should be the transition to stacking on Ropsten's test network on 8 June. We think the move to PoS could spur demand to buy Ethereum, as the rewards will accrue to the holders of the highest number of coins.

If we analyse the trading volumes, the current stage of price decline is seeing this year's highest volumes. This indicates that there is increased interest in trading this asset at these price levels. Trend reversals almost always occur when large volumes are traded, so we expect an upward reversal soon.

Ethereum trading volumes

Whale activity is also worth noting. The number of trades over $1 million in mid-May was the highest since the beginning of the year. It's a strong signal that the price decline has stopped, and the asset is starting to rise.