Ethereum prints a fundamental bullish signal as it holds a region of $ 390

Ethereum is expected to move much higher in the coming months as the major cryptocurrency prints a bullish technical signal.

Ethereum bounces sharply from the $ 390 horizontal region in bullish movement

As the chart shared below shows, ETH has recently rebounded from the $ 380-390 horizontal region, which marks a win for the bulls. The chart shows that in the past few months and even in 2018, $ 300 has been an important level for Ethereum to maintain.

The coin that manages to do this now bodes well for the bull case.

Chart of ETH's price action since the start of 2018 with analysis by crypto trader Hornhairs (@Cryptohornhairs on Twitter).
Source: ETHUSD from TradingView.com

Not the only one who thinks so

The aforementioned analyst is not alone in thinking that Ethereum will undergo a strong long-term rally.

Leading binance futures trader Logan Han shared the graph seen below earlier this month. It shows that Ethereum could see a macro rally towards $ 800 in the coming months as it will experience a major bullish breakout from a descending triangle / wedge pattern.

This chart was shared shortly after pointing out that ETH’s price action is now similar to that seen before the 2017 exponential rally. That rally took the coin from the region of $ 300 to a high of $ 1,400 over the span. one month.

Chart of ETH's price action since the miiddle of 2018 with an analysis by crypto analyst and top Binance trader Logan Han (@LohanHan_ on Twitter).
Source: ETHUSD from TradingView.com

Value accumulation mechanisms to increase ETH

Ethereum has long-term value accumulation mechanisms that can boost the cryptocurrency.

For one, the Ethereum 1559 enhancement proposal is expected to roll out in the coming months or year. Analysts consider this investment fundamental to ETH’s accumulation mechanism:

“The purpose of EIP 1559, according to Eric Conner, is to provide portfolios and users with a much-needed improvement to the user experience of gas management. The way EIP 1559 solves the gas management problem also improves Ethereum’s monetary management system. “

Estimates suggest that if EIP-1559 had been activated in the past 12 months, nearly one million ETH would have been burned.

The 3 pillars of ETH’s accumulation of value:

– Trustless SoV ✅
– EIP-1559 (paid fee) ⏲️
– Staking ⏲️

Which leads to:

– Economy without trust (DeFi)
– Deflationary ETH
– ETH yield in the protocol

We currently only have 1 in 3, but ETH has a market capitalization of $ 46 billion.

Imagine when ETH has 3/3.

– Anthony Sassano | sassal.eth ⛽ 🏴 (@ sassal0x) 24 October 2020

ETH2 is expected to be activated in the near future. ETH2 will give Ethereum a natural staking reward where those looking to earn returns can purchase ETH, then stake it to earn passive income.

Photo by Byron Johnson on Unsplash
Price tags: ethusd, ethbtc
Charts from TradingView.com 
Ethereum Prints Pivotal Bullish Signal as It Holds $390 Region