Ethereum, since it flipped the bearish divergence seem to have followed a similar pattern amid the slow & steady rise. The asset now prefers to rise to form higher highs and lows after a notable consolidation. If in case, the ETH price follows a similar price trend, then it would very difficult to hit $10,000. Moreover, some factors may act as a catalyst that may not allow the price to reach these levels.
Consolidation Awaiting Ahead!
As mentioned before, the asset is following a specific trend since the flip from the bearish divergence in mid of July. The price surge registered 13 straight green candles to mark a substantial uptrend. And further, the price consolidated for a while and pulled the next leg up. However, amid the uptrend, the China FUD played its role and the price slid down notably. Later the asset yet again initiated with a similar trend.
Currently, the price appears to have initiated with consolidation that may continue for some time before the next leg up. If the price needs to break $10K by the end of 2021, then the accumulation needs to reduce which is pretty tough.
Insane Gas Fees
With the jump in user attention and adoption, the demand for Ethereum blockchain also rose to its next levels. The average transaction fees rose to as high as $50 or $60 which made the traders lookout for other options. Despite the launch of the London Hard Fork and the EIP 1559 upgrade, the fees had no major impact. However, in the coming days with other upgrades, the high gas fees can be addressed.
New Competitors For Ethereum!
Amid the high gas fees, the traders are looking out for other alternatives for Ethereum. And hence the other blockchains like Solana, Polygon, Tron, Cardano, etc are gaining huge attention and adoption in recent times. According to the analytic platform Defillama, Ethereum dominance has dropped drastically from nearly 97% at the beginning of 2021 to 66% at the press time.
PoW, PoS Merger Delayed!
After the successful launch of London Hard Fork, the merger of PoS and PoW was the most awaited event. This merger would change the working of the blockchain and also the rewarding pattern. The merger was expected to happen somewhere in Q4 but in the latest update, this event is postponed to June 2022. The limited GPU supplies were said to be the major reason.
Collectively, despite multiple hindrances coming within the path, yet Ethereum(ETH) price is still poised to hit higher levels by the end of 2021. However, the $10K target for 2021 still remains under misty clouds but still can be achieved by Q1 in 2022.