The year 2020 was awaited by the many enthusiasts of Ethereum, the second cryptocurrency in the world. With the arrival of Ethereum 2.0 in particular, the year promised to be rich. While version 2.0 is still long overdue, Ethereum is getting a lot of attention for the very significant variations in its price. A look back at the last weeks of Ethereum madness.
Ethereum price variations
With the COVID-19 crisis gone by, cryptocurrency (and stock) prices collapsed in March 2020. Ethereum was no exception. However, its course recovered quickly to begin a slow but robust recovery. Then, from July 20, 2020 everything was packed …
Since the exponential but ephemeral increases in the price in January 2018 and May 2018, the threshold of € 250 has established itself as the resistance value of the Ethereum price. After crossing this threshold in July 2019 and then in February 2020, the price immediately collapsed.
However, as of July 20, 2020, Ethereum began to grow relatively sharply. Its price has successfully crossed this famous resistance value of € 250. On September 1, a peak was even reached around € 400. Since then, the price has fallen but has stabilized above € 250. In total, between July 1 and September 1, 2020, the price of ETH increased by 93%.
Ethereum 2.0, the main challenge in 2020
The year 2020 still holds some surprises for investors in ethers. Indeed, Ethereum 2.0 is yet to come. As a reminder, the main change expected with the arrival of Ethereum 2.0 is the adoption of a new validation method, the Proof-of-Stake.
In the opinion of the main interested party, its founder Vitalik Buterin, the transition to Ethereum 2.0 is “harder” than what had been imagined. The resources necessary for the evolution of the ecosystem are considerable. So much so that certain voices are being raised within the cryptosphere. Some believe that it would be easier to create a new project than to struggle to make this complex transition happen.
However, the tests are in progress and are rather positive. Ethereum 2.0 would therefore only be a matter of time. In August 2020, the last test phase of ETH 2.0 was successfully launched. Called Medalla, this test was a full-scale simulation involving 25,000 users and 1 million ETH (fictitious).
It remains to be seen whether Ethereum 2.0 will keep all of its promises. The adoption of version 2.0 is essential for the survival of Ethereum and its adaptation to new issues. Faced with a booming decentralized finance (DeFi), Ethereum must adapt its process to meet demand. Finally, Ethereum 2.0 will have to reassure. Recently, analyst Eric Wall sparked an uproar by claiming that Ethereum 2.0 was vulnerable to 51% attacks. To which Vitalik Buterin hastened to answer that the adoption of the Proof-of-Stake precisely made it possible to better guard against this type of attack …