Update About ETH 2.0 Upgrade Hits the Headlines – BTC, ETH, LTC Price Analysis, 27 July 2020
Recent news about Ethereum was among the key events in the cryptocurrency market last week. On July 23rd, Danny Ryan posted an update about the long-awaited and highly ambitious ETH 2.0 upgrade. According to the post, the Medalla multi-client testnet will launch on August 4th. It is considered to be a final test before the mainnet launch of the ETH 2.0. The post also includes additional information that the current Ethereum chain is to be integrated into the new ETH 2.0 consensus as a shard.
The ETH price has reacted quite positively to the update about the upcoming upgrade – ETH/EUR has jumped from €205 to €275 over the last few days.
Other positive news for the crypto market and for all financial markets, in general, was the recently published surveys by IHS Markit, which imply a beginning of a recovery of the global economy.
Eurozone businesses reported the strongest growth in two years in July, according to the IHS Markit Flash Eurozone PMI. The situation in the United States is also improving, as the country's private sector firms signaled business activity stabilization at the start of Q3.
Supported by the positive news, the cryptocurrency market starts the week on a firm footing. At the time of writing, according to Coin360.com, one Bitcoin costs €8,815.96 (+5.25%), one Ethereum – €280.1 (+4.23%), and one Litecoin – €42.02 (-1.35%):
Source: Coin360.com (Daily crypto market performance)
Now let's check the price charts of the major cryptocurrencies against the euro.
In the daily chart (1D), BTC/EUR is trying to break through the upper line of the Symmetrical Triangle, thus attempting to resume the major trend (uptrend):
If the breakout succeeds and the uptrend is renewed, then the price of Bitcoin may surge up to the psychological level of €10,000 per one digital coin.
Conversely, if the current rally ends, then in case of a pullback, the price may retest the upper line of the Symmetrical Triangle or a level of approximately €8,250 per one digital coin.
In the weekly time frame (1W), last week ETH/EUR formed a solid bullish candlestick, indicating that buyers are gaining traction:
As seen in the chart above, in June 2019 there was a local high at a level close to €315 per one digital coin. We expect the traders to target this level in case of a continuation of the bullish sentiment.
However, it is worth mentioning that on the way to €315, ETH/EUR may experience some periods of consolidation and slight pullbacks, because some traders that have bought the cryptocurrency at lower levels may decide to take their profits.
In the daily time frame (1D), LTC/EUR has approached the upper line of the Falling Wedge:
In our estimation, if the rally in the cryptocurrency market continues, then LTC/EUR may attempt to exit the wedge soon. If that is the case, it will be the end of the downtrend.
However, if buyers lose control and the current move cannot keep the upward momentum, then the downtrend within the Falling Wedge may start again.
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The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex's content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.