ETH price ranges below $250 ahead of Beacon Chain mainnet

Ethereum ETH Price

The discourse around ETH price can go on for days on end. However, the price and overall valuation of the project is largely determined by its fundamentals.

This is what separates believers and speculators.

While speculators are in for the money, believers look at the long-term, believing in the strengths offered by the blockchain technology.

As it is emerging, Ethereum is their playfield, and how the ETH price moves isn’t a top priority.

Transition to Serenity

Ethereum is currently on a transition, shifting from a Proof-of-Work to a Proof-of-Stake consensus network as it seeks to address two nagging concerns: scalability, and energy efficiency.

Serenity, which will be the culmination of all of Ethereum developers’ hard work accrued over the last five years, will be activated in phases over the next three years.

However, the successful implementation of the Beacon Chain will instill more confidence and probably pump ETH price above $250 and $300 as FOMO kicks in.

The Beacon chain

The Beacon Chain is Serenity’s foundation. It must be seamlessly activated without flaw as the activation of Phase 1 is so reliant on its success.

The Beacon Chain, according to ConsenSys, introduces Proof-of-Stake, ETH delegation, and staking.

For a user to qualify as a validator, he must stake 32 ETH, in return for annual rewards. As per an ETH 2.0 Rewards calculator, the rate for stakers is 14 percent by the end of the first year.

This is above the current banking saving rates and partly explains why ahead of the Beacon Chain, Phase 0, mainnet launch, the number of addresses with over 32 ETH is up 13 percent.

ETH price analysis

Ethereum Daily Chart for June 10, 2020

From the ETH price chart, the coin is consolidating against the greenback. With prices capped at $250 to the upside and the $230-$240 zones acting as support, gains over the last trading week have been low.

ETH is down against the USD but has noticeably gained against the equally resurgent BTC.

For traders, there is confidence regardless of this temporary impasse. If there is an uptick of price above the $250 resistance level at the back of high trading volumes, odds are ETH will easily float towards $285 and $300.

On the flip side, the confirmation of the double bar bear reversal pattern of June 2 may force a correction towards $200.

This is largely dependent on the confirming trading volumes that will drive the ETH price below June 2, 2020, low and $230.

A break below the main support trend line and the middle BB (the 20-day moving average) may trigger a sell-off towards $230 and eventually $200.

Already, price action hints of weakness, and the ETH price continues to print lower lows relative to the upper BB.

Disclaimer: This is not investment advice. Opinions expressed here are those of the author and not the view of the publication.

Dalmas Ngetich

Dalmas Ngetich

Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies. Enjoying the opportunity to help educate bitcoin enthusiasts, he writes insights and coin price chart analysis.

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