Proof of Stake on Ethereum is definitely the most anticipated event of the year. Finally, after multiple delays, it seems like a date has finally been set.
The new consensus method is expected to hit the Ethereum blockchain on September 19. Naturally, the first question is not whether ETH will benefit, but HOW MUCH ETH will benefit.
Ethereum to $2k?
Developments such as The Merge aren’t sighted very often. This makes the event a potential rally trigger that ETH could use right now, given its current condition in the market.
The king of altcoins has been subject to high volatility lately. It has been hovering around the $1.2k mark for a month now. Unable to cross this level, ETH has fallen back to $1,197, at the time of writing, after closing at $1,231 a day ago.
Interestingly, the Relative Strength Index (RSI) seemed to be repeating a pattern at press time. Rising from the oversold zone, Ethereum has been noting a hike in buying pressure. In doing so, it is now making its way up towards the bullish zone. Although it is yet to enter it, there is a fair chance it might be able to do so in the next few days.
Moreover, the last time ETH moved from the oversold zone to the overbought zone, it took the king of the altcoin around 65 days. As a result, the price surged 42.47%, pushing ETH to $3,334.
If ETH were to rise 42.47% in the 65 days since its trip to the oversold zone, the altcoin would close at $1,421 in August.
Needless to say, it doesn’t do much for the cryptocurrency, especially since it lost much more during the June crash. However, it will push the altcoin closer to the next critical level of $2k.
In order to recover this price level, ETH will need to rise an additional 67.78% from its price at press time. This will bring the total rally to 101%. This can be achieved as the arrival of PoS will create a lot of hype for the altcoin.
Additionally, it will also gain the support of the 50-day Simple Moving Average (SMA). In fact, it may even do the same for the 100-day SMA. These two support lines are also crucial in pushing ETH towards $2k.
