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ETH Prices Returned To Previous $620 Resistance Level On 2.0 Launch Day

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The ETH prices returned to the previous $620 resistance level right on the 2.0 launch day of Beacon Chain which could provide the momentum for another increase so let’s read more in today’s Ethereum news.

Today was the long-awaited launch of Phase 0 in the ETH 2.0 upgrade roadmap which stretches ahead for the next few years. According to the Beacon Chain countdown, there’s less than a few hours before the genesis event spawns the first block on this new chain. The new explorer reports that there are 872,000 ETH staked which amount to $525,000 at today’s prices. The excitement over the launch was quite heavy but many are still unaware that the new blockchain will not function as the other ones but it will only provide staking rewards to validators. All of the smart contracts, transactions, and dapps will continue as usual on the original ETH 1.0 chain.

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ETH 24-hour Price Chart (Source: Coingecko)

The researchers at Messari Crypto pointed out:

 “When the Beacon Chain launches tomorrow, outside of bootstrapping a network of proof of stake validators, it will have little functionality.”

This means that there are still issues with high gas prices despite the existing network coming into a heavy load which is bound to happen in the next few months if the DeFi momentum continues and space evolves more. Phase 1 will introduce scaling via sharding which will introduce 64 parallel side chains in order to take the load off the main chain and to increase throughput. This will unlikely occur for at least a year and even then the 1.0 and 2.0 will operate independently until the 1.5 phase merges them together in about two years’ time.

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Either way, the ETH community is hyped up over the event, and for a good reason. About five years were spent on development and research for the largest smart contract and decentralized application network. David Hoffman said on the matter:

 “We were born too late to explore the globe, too early to explore the galaxy, but we were born at the perfect moment to explore the infinite whitespace of Ethereum 2.0.”

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ETH 7-Day Price (Source: coingecko)

The ETH prices returned to the previous $620 resistance level which is the June price high of 2018. The level seems to have formed a double top and heavy resistance zone but a next leg up could take the prices to $800 where more resistance is ahead but on the downside, support can be found at $520. At the time of writing, ETH prices retreated a little to trade at $605 but now the momentum is still with it.

At the time of press, ETH prices had retreated a little to trade at $605 but the momentum is still with it.

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