The native token of the Ethereum blockchain network has touched the $550 exchange price, thus prompting market analysts to speculate if this digital currency is on the verge of a rally. Most of the speculation is based on data gleaned from technical analysis charts that recall the last time ETH/USD reached the $600 level, which was just before the crash of the cryptocurrency markets in 2018.
Bullish traders are detecting a sentiment similar to what was experienced during the first quarter of 2018. There is strong interest by sellers who would like to rake every profit they can squeeze between the $547 and $600 trading range, but analysts are banking more on a projection that could establish solid resistance at $600; this would in turn result in a trip past $700 and towards the $900 mark.
Although the Ethereum blockchain is the most widely used around the world, the ETH token has not been able to gain traction as a digital currency, and this is despite Russia and Singapore having adopted the open-source blockchain to create digital versions of their respective fiat currencies. With the ongoing upgrade to the Ethereum 2.0 network, this blockchain is on track to becoming far more powerful and useful than Bitcoin. In the near future, the Ethereum network will be fully sustainable in the sense that miners will no longer have to participate in order to settle transactions; such a mechanism may never be achieved by the Bitcoin network even with the recent implementation of the Lightning upgrade.
Along with Bitcoin Cash (BCH), which is a fork of the legacy Bitcoin blockchain, ETH has taken a lead in the cryptocurrency markets in terms of market capitalization and trading volume. It should be noted that the real-life applications and implementations of the Ethereum network essentially work as fundamental developments in favor of ETH, although the token itself is unlikely to catch up to Bitcoin's status as the most valuable digital commodity. For the time being, however, it would not be a stretch to think that ETH could dance around the $1,000 exchange price in a few months from now.