Ethereum’s 2.0 update could be the catalyst for a new bull run

• Possible bullish signs appear when leading ETH developers freeze funds in the Eth 2.0 smart contract
• The Eth 2.0 deposit contract has dropped in the past few days

Data from Dune Analytics reveals that 52,801E TH has been sent to the Ethereum 2.0 deposit agreement in the last few days. This equates to 10% of the 524,000 token threshold required to initiate the upgrade on the mainnet. As the main developers continue to lock their coins into the contract, they are incentivized for a quick launch, which could positively affect pricing.

Ethereum 2.0 network statistics

Ethereum turns bullish as speculation increases around ETH 2.0

To push for scalability on the Ethereum network, the need for ETH 2.0 has gained a lot of attention from the crypto community. Market participants appear to believe the upgrade may have a bullish effect on the smart contract token as it further pushes its buying pressure to hit the 500,000 ETH threshold.

This milestone is important to ETH 2.0 as the launch was split into four phases, the first being phase 0. This part of the network update is intended to facilitate the transition of the Ethereum protocol into Proof-of-Stake.

Taking a look at the ETH / USD chart over a weekly timeframe, we can see the formation of a double bottom pattern which was confirmed by the breakout from the $ 364 support zone, with possible resistance at $ 800 towards the end of the year. This bullish reversal pattern and the accumulation of trading volume indicate that a major bullish trend may be near.

ETH / USD daily chart

On the one hand, it may appear that there has been a drop in the number of ETH 2.0 deposits, as shown by CryptoQuant. A Twitter poll reveals that one of the main reasons behind the sudden decline is that market participants “just aren’t interested” in having their tokens held until Phase 1 is launched.

ETH 2.0 deposits