Hello everyone, this is going to a small fundamental and technical analysis approach to Ethereum . We recently had a strong chain reaction from Bitcoin’s price action to the upside, and Ethereum followed suit. We are currently possibly seeing the beginning (possibly being the keyword) to a new, small mini alt season that can start off with ETH. All things combined, many of the technical and fundamental analysis are now aligning that may be reducing the risk, and increasing the reward (Risk:Reward – RR) factor. Let me discuss the fundamentals first, before getting into the technicals.

Many of you probably are asking,

“Should I Buy Ethereum? Why is Ethereum is a Good Investment?”
or,
“What the heck is Ethereum 2.0? – when is it coming out?”, at this point.

Ethereum 2.0 is the name to describe a series of updates to Ethereum to make Ethereum function a lot better – it’s as simple as that. Making it even more simpler, Ethereum is the blockchain on which many different applications can run (are you still with me?). These applications are called DAPPS. What are DAPPS? DAPPS are decentralized applications. One of the biggest benefits of Eth blockchain is the smart contracts that allow an endless number of different applications to run on Ethereum .

Now, ETH 2.0 is the end game to increase scalability of the Ethereum Blockchain – one of the biggest technical problems within the cryptocurrency space. The updates will roll out in a few phases. In terms of scalability, it is most definitely possible for Ethereum to scale with the Ethereum 2.0 update that introduces sharding and Proof of Stake consensus mechanism – one of the most fundamental reasons ‘geeks’ are getting into this (Chad v. Virgin alt meme, anyone?). Ethereum 2.0 Phase 0 has now been formalized for launch at some time around Dec. 1. The deposit contract is live and can collect the necessary funds to trigger staking. The contract must collect 16384 deposits of 32 ETH each, a total of 524,288 ETH or about $200M USD, to proceed with the launch. This is why ETH is currently rising in price, hypothetically – or at least what we can assume.

Now to break it down, here are the three things that every investor should know from my point of view:

Decentralization: This is probably something you have heard of when entering the crypto space. ANYONE with simple consumer level hardware can become a validator – making it easy for anyone to join. This allows the Ethereum 2.0 blockchain to scale horizontally on a global scale.
Security: Many cryptocurrency incentives allow validators to enter and exit the network without disrupting it – which is kind of like cancelling your Netflix subscription without any problems.
Simplicity: Reducing the complexity but making it more secure. Can’t really explain this any more simpler.

I believe Ethereum has an extremely good chance of being the number one decentralized application platform in the cryptocurrency space – beyond everything else. This is why you might always here Eth being the king of ‘alts’. Especially with the upcoming Ethereum 2.0 Serenity upgrade, the future of Ethereum looks VERY, very promising. This upgrade will bring a massive boost in terms of scalability since many people will be able to run a staking node on their personal hardware. Yes, I know it sounds complicated. Vitalik has released an Ethereum 2.0 roadmap which refletcs and approximate view of what is in store for ETH 2.0 in the next five to fifteen years. The only thing that I believe you need to know as an investor is that it will change many aspects of Ethereum 1.0 (the current PoW version) such as gas pricing, client synchronization and fee policy – all of which are again, problems on the current blockchain.

Technical Analysis:

Ethereum has broken out of the current resistance, where many believed this was not going to happen. I personally, have taken a long on this; however, we are making sure that we transitioning into a bull market for alts, and we must be considering Bitcoin as the main catalyst, no matter what ETH 2.0 has to offer.