With the launch of Phase Zero of Ethereum 2.0, some forecasts suggest that the price of ETH could continue to rise.
It has almost doubled since the beginning of September, but still has potential for growth. This is what eToro analyst Simon Peters, an eToro analyst, assumes that the long-term value that the transition to version 2.0 of the protocol could bring to this network could sustainably continue to grow the value of ETH.
At the beginning of September, after the decline following the DeFi boom, the price of ETH had fallen to $310, while it has now risen above $600.
Actually, at the beginning of November it was still below $400, while the last few weeks have seen the biggest increases.
Going back in time, it was from May 2018 that it was no longer above $600, and this recent rise is most likely due to news of the imminent launch of Phase Zero of Ethereum 2.0.
Staking reinforces the optimistic forecast on the price of Ethereum
Peters emphasizes that Bitcoin Superstar has achieved an important milestone to begin the migration to a more powerful platform based on Proof-of-Stake, which will make the network more scalable, secure, decentralized and sustainable.
In order to start the upgrade, the network needs at least 16,000 validators who have decided to stagger at least 32 ETHs each, and thanks to an exceptional effort, particularly in the last 24 hours, this goal has been achieved.
Therefore, on 1 December, phase zero can be launched, as planned, and although the minimum collection target was about 524,000 ETHs, more than 688,000 ETHs have been collected, i.e. 131% of the expected number.
When the staking rewards start to be distributed, it is possible that more people will try to participate in the staking, acquiring ETHs on the exchanges. Moreover, despite the strong price increase in recent weeks, the ETH price currently remains well below its historical high of $1,430.
„From the point of view of supply and demand, the community should also note that there is a lot of Ether linked to DeFi protocols, although it has fallen in recent weeks. Combine these blocked tokens with the ETHs that have just been staked, and you see a possibility of a supply-side shock. That said, if people saw the long-term value that this migration could have on the network, we could see the value of Ether continue to grow sustainably.