Ethereum’s next target is $500, according to BitMEX co-founder and CEO Arthur Hayes. He expressed his amazement about ETH’s surge to $400, calling for the continuation of the rally.
Ethereum Breaks Above $400 For First Time Since August 2018
On Sunday, Ether hit the highest level in two years, breaking above $400 for the first time since August 2018. Ethereum has benefited from the general bullishness of the cryptocurrency market, but it’s not only that.
The second-largest cryptocurrency is at the forefront of the DeFi (decentralized finance) frenzy, as most DeFi tokens that have experienced astronomical gains are ERC-20 tokens. Besides this, Ethereum leverages its own fundamentals – the Ethereum 2.0 Medalla testnet is expected to launch Tuesday.
ETH has managed to increase in pair with Bitcoin itself, which has been on a bullish footing since the end of July. Ethereum’s courage was spotted by Hayes, who couldn’t hide his shock, predicting that the next resistance is $500.
— Arthur Hayes (@CryptoHayes) August 2, 2020
The comments of BitMEX’s CEO came right before Ethereum hit $410. The cryptocurrency suddenly crashed later on Sunday, taking many short-term traders by surprise. Nevertheless, ETH is back on track after that temporary correction and is trading again close to $400.
Even if ETH continues to rally, short-term corrections like the recent one might still happen. Thus, traders are advised to implement risk management techniques.
Gradual Transition to ETH 2.0 to Drive Prices
While Bitcoin had its culmination of the year in mid-May with the halving event, Ethereum is about to experience something similar with the transition to Ethereum 2.0, which will give up Proof of Work (PoW).
The final public testnet for Phase 0 is expected to go live on Tuesday. As CryptoPotato reported, Ethereum protocol developer Terence Tsao confirmed that the genesis state had been achieved with more than 20,000 validators, surpassing the minimum threshold of 16,384 validators who should have put their 32 ETH at stake.
The time for Medalla launch is set for 1:00 PM UTC, August 4, 2020. During the testnet, validators won’t receive real ETH as rewards. The simulation will operate with so-called Göerli testnet ETH (GöETH) tokens.
Still, we are probably many months away from the full launch of ETH 2.0, as the transition will be carried out in three phases. The price of ETH will likely react in response to every new step implemented.