Key Takeaways:
- Ether (ETH) could fall 35% based on a bearish Triangle setup.
- The Network's awaited upgrade could boost the token.
- The upgrade testnets were successful, developers say.
YEREVAN (CoinChapter.com) – Ether (ETH), the in-house token of the second-largest crypto Ethereum, attempted an unconvincing rally at the start of the week, gaining 6%. However, the lack of bullish momentum resulted in four days of sideways consolidation. Finally, the digital asset traded at $1,770 in the European session Friday, threatening to close the week below crucial support.
ETH chart features a bearish Triangle
In detail, ETH/USD price chart formed a Descending Triangle. It is a bearish continuation setup with a falling resistance line that caps upside attempts and flat support, preventing declines. Once ETH exhausts the formation through consecutive retests, it could lose the said support at $1,730.
If the bearish scenario pans out, the drop equals the maximum distance between the trendlines. Thus, the target price would stand at $1,150.
Also read: Ethereum-related funds are adding ETH to their holdings in 2022.
Aksel Kibar, a Chartered Market Technician (CMT), also commented on the pattern. He mentioned a bullish possibility if ETH breaks above $1,900, albeit admitting the Triangle’s bearish nature.
However, Ethereum’s successful “dress rehearsal” could save the day.
Also read: Bitfinex's $670M Ethereum (ETH) liquidations were a bug, says CTO, while the token drops below $1.8K.
Transition to PoS ready
As CoinChapter reported, Ethereum’s transition from proof-of-work (PoW) to proof-of-stake (PoS) consensus mechanism has been years in the making.
A shift from the energy-intensive PoW could translate to faster transactions, bringing in more users. However, high transaction fees and congestion plagued Ethereum for years, partially spurring the competition.
However, given the network’s sheer size, testing the transition will take more time. According to Tim Beiko, the protocol support executive at Ethereum Foundation, two more testnets will come before the final deployment, not counting the one that commenced earlier in the week.
Also read: Ethereum (ETH) bearish despite undergoing $700M short liquidations — here's why?
Ethereum developers told CNBC in an exclusive interview that the test runs on June 8 were “very smooth.” Additionally, they commented that Wednesday’s “exercise” showed that the PoS validation process substantially reduces the energy necessary to verify a block of transactions and proved that the “merger process works.”
Auston Bunsen, the co-founder of blockchain infrastructure company QuikNode, commented y saying “there was no crazy bug that happened.” He added that “everything went as smooth as it could be.”
Also read: Is it the right time to buy Bitcoin(BTC)? – this exec says yes.
Should the long-awaited transition commence shortly, it could boost the network and promote the ETH price.
