After an increase of over 6% in the last 24 hours, Ethereum has exceeded USD 250 - for the first time since February. Currently, the ETH exchange rate is USD 251.6. According to analysts, the planned launch of Ethereum 2.0 may further increase the price of ETH in the near future.
ETH rate above USD 250
Ethereum (ETH), the second best cryptocurrency in terms of market value, increased by over 14% last week and ended May with a profit of 11%.
During yesterday's session ETH gained another 7%, reaching the highest level since the beginning of March and approaching the psychological level of USD 250.
At the time of publication, the Ethereum price is already USD 251.6.
Analysts expect both BTC and ETH to maintain growth in the near future, but Ether should achieve much better results with the upcoming Ethereum network upgrade.
As noted by the popular cryptographic analyst Wolf, the MACD indicator for the first time in history crossed zero on the monthly ETH/BTC chart. As Omkar Godbole points out, this means that the market expects ETH to do better than BTC.
According to Crypto Michael analyst, in the long term - in the coming 12-24 months - ETH can reach even 1000 USD.
Launching Ethereum 2.0 can raise the ETH price
The upcoming transition of the Ethereum network from the Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus algorithm as part of a massive network update called Ethereum 2.0, probably had a significant impact on the ETH cryptocurrency course in May, and pressure to buy the token may remain strong also in the near future.
One of the differences is that in PoS users will be able to "stack" - essentially block - their ETH, which will be used to verify new blocks and thus support the network. Of course, users will receive rewards for their contributions, and the larger it will be in the ecosystem, the greater the reward will be.
According to Glassnode data, the sharp increase in the number of addresses with 32 ETH or more - the amount that the user must maintain as a balance to become an ETH 2.0 validator (and thus win staking rewards) - suggests that investors collect coins in preparation for update.
Lennix Lai, director of financial markets at OKEx, expects Bitcoin and the broader cryptocurrency market to benefit from the increased interest of Ethereum investors. "The upcoming ETH 2.0 upgrade will encourage more people to stack ETH and ultimately benefit the entire cryptographic market."