- Ethereum 2.0 upgrade won't happen before November, or even January next year
- Co-founder Vitalik Buterin favours an early launch regardless of the level of readiness
- ETH/USD is trading in a symmetrical triangle as sellers attempt to facilitate a break lower
Ethereum (ETH) price is trading at $240 as sellers attempt to break the symmetrical triangle. In the meantime, the Ethereum community is debating the ETH 2.0 launch date.
Fundamental analysis: November or January for ETH 2.0 launch?
Justin Drake, a researcher at the Ethereum Foundation, believes Ethereum 2.0 upgrade won’t see the light of the day before January 2021. Vitalik Buterin, co-founder of Ethereum disagrees with Drake, arguing the upgrade could be released as early as November 2020.
ETH 2.0 represents the next version of the Ethereum blockchain. The upgrade will transform the network from a proof-of-work system, where miners validate the transactions, to proof of stake, a system where consumers get awarded for locking up their coins. The upgrade has been underway for a couple of years now.
In an AMA post on Reddit, Drake wrote that the Ethereum network isn’t ready for the upgrade yet. He said that following the public testnet launch, it will take at least two to three months for developers to fix bugs and with all of the holidays in that period, they might need more time to complete the tests.
“All the above cannot happen in Q3 2020. With Thanksgiving on November 26 and the December holidays, I’d say the latest practical opportunity for genesis in 2020 is mid-November, 4 months from now,” Drake argued.
“As such, I’m now inclined to say that the earliest practical date for genesis is something like January 3, 2021 (Bitcoin’s 12th anniversary)”.
Buterin quickly replied to Drake’s post on Reddit. “I personally quite disagree with this and I would favor launching phase 0 significantly before that date [January 2021] regardless of the level of readiness,” said Ethereum co-founder.
“I’d argue the four-month clock started ticking for us at the beginning of July,” he added, referring to the upcoming rollout of Altona, a testnet for Ethereum 2.0.
Buterin also said that the upgrade will not include any critical applications in its initial stage, providing developers with plenty of time to fix the bugs and prepare for high-stake applications.
Technical analysis: Ethereum stuck in a triangle on the H1 chart
ETH/USD is currently stuck in a symmetrical triangle, which usually proves to be a continuation pattern. In general, symmetrical triangles tend to lean towards the previous market bias, in this case the uptrend. However, the price action is currently trading closer to the triangle’s support.
A close below $237 would mean a break of the triangle and a likely acceleration of losses. In this case, the sellers would target multiple intraday support levels between $233 and $235. On the upside, the triangle’s resistance comes at $243. A break of the triangle to the upside is likely to attract a new wave of ETH buying.
Ethereum price is trading around the $240 mark as sellers try to break the symmetrical triangle. Separately, the Ethereum community is discussing dates for the release of the ETH 2.0 upgrade, likely not to happen before November this year.