As cryptocurrencies become more popular, crypto mining becomes a major issue for popular cryptocurrencies such as Bitcoin and Ethereum. Tesla will launch solar energy-powered machines to mine Bitcoin, and Ethereum will switch to Proof of Stake consensus to reduce carbon footprint in mining.
Users expect that the world’s major cryptocurrency, Ethereum, will announce an upgrade soon. Indeed, it will transform the backbone of the transaction on this platform because it may switch from Proof of Work to Proof of Stake consensus.
Miners use fast processing computers for a long time to solve puzzles and get rewards in the form of Ether, but due to the increase in competition, they run their computers for a long time which harms our environment. That is why developers are expected to change the consensus and merge two major aspects of the Ethereum platform.
The mining process will end, and it will start a new way of validation where ETH owners (having a certain amount of ETH in their wallets) will become the validators. It will ensure less energy consumption and increased security on the network.
It is expected to be announced within a few months, and because of this uncertainty, the speculation brings down the coin’s value. Read our Ethereum price prediction to know the price levels of ETH in the future.
At the time of writing, ETH was trading around $3163. After the price correction in January, it consolidated in the last two months. However, ETH has turned bullish and provided a good return from the near bottom. The $3114 level will work as strong support for this price; if it breaks the level, it can fall up to $2550.
However, it will consolidate for a few weeks around $3000. It is important to analyze the technical indicators for short-term investment.
The MACD line is trading below the Support Line on the daily chart, indicating bearish momentum. RSI has also come down to 49. Moreover, candlesticks are forming below the baseline. ETH looks bearish for the short term, but it will continue its bullish run.
The MACD line is all set to make a bullish crossover on the weekly chart, and RSI is stable at around 50. Interestingly, two red candlesticks are forming around the baseline of the Bollinger Bands, which suggests short-term bearishness.
The price may come down to $2800, and that will be an appropriate time to buy the coin for the long term. If you buy now, you can be trapped with a higher price range, and you cannot book profit in the short term.
Indeed, Ethereum is a popular coin with diversified use cases, so you can trust this coin and take the benefits of a long-term investment.