Ethereum has gained an incredible 126% over the last three weeks. Founder, Vitalik Buterin believes the Proof-of-Stake (PoS) to launch by the year’s end. With the switchover to the PoS network, the platform will be 90% more energy-efficient than it is now. Hence, this ETH price is aiming to hit $20k very soon.
Ethereum’s PoS Launch Will Take Its Price to $20k! But How?
Ethereum price will be soon valued at $20k after PoS launch, the main reason would be the token issuance factor associated with the upgrade. The asset presently has an issuance of around 13,500 ETH per day. In order to keep the average price of this altcoin above $2000, it costs 27 million Ether per day.
However, once the PoS upgrade comes into effect, the issuance of the token could drop drastically by about 90%. That is, the ETH price could be kept at an average price of $20k with only 1,350 ETH issuance per day. Hence, this will keep the asset’s average price momentum above $20k.
Sellers Are Out Powering the Buyers! What Holds in the Destiny of Ethereum Price
Ethereum price has risen beyond $3000 over the last 15 days. Recently, the altcoin formed a rising wedge pattern. The asset seems to be on the verge of either consolidation or breakdown as sellers out powering buyers. In the 4 hour chart, the second most popular crypto consecutively faced rejection nearly 5 times at $3600.
Moreover, the wick of the candle appears to have surpassed the crucial resistance level of $3,625. This could signify the mounting selling pressure, and hence the asset may consolidate between $3400 and $3600. Further, if the price fails to sustain this level, then it is expected to plunge back to the initial support level of $3100.
Collectively, the Ethereum price rally currently appears to have been diverse than Bitcoin as the dominant asset is marking new highs. With the PoS merger, the ETH price may be impacted positively and range high with a huge margin. However, the price target for 2021 still hovers around $10,000. And with an extended rally plus the network developments could uplift the price towards the new target at $20,000.