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Highlights
- Ethereum is making attempts to push its price forward after witnessing a downtrend for some time.
- It is trying to pierce through the US$4000 mark, which remains the key level for the crypto.
- Its users are elated as the crypto has announced moving from Proof-of-Work mining to Proof-of-Stake mining, thus helping in solving the crypto’s scalability issues.
Of late, the world’s second most popular cryptocurrency, Ethereum, had pushed below the US$4K mark and had touched US$3,780.13 on 13 December.
A Quick Read: Why is Ethereum’s price declining in crypto market?
Since then, the token has been trying to stop the downwards trend and attempting to look for ground for an upward price action. It was priced at US$3,860.41 the next day (14 December), with prices going higher at US$ 3,925.80 on 19 December and by 20 December, the token gained 0.77% in the last 24 hours and at the time of writing, it was valued at US$3,940.79.
Hence, this reflects the crypto’s eagerness to cross beyond US$4000.
Related Read: Will Ethereum (ETH) price hit US$5,000 before Christmas?
Source: © Steveheap | Megapixl.com
Know the reason which might have led to ETH’s upward price trend
As per the latest reports, Ethereum is seeking a move from its original PoW (Proof-of-Work) consensus mechanism to PoS (Proof-of-Stake) mechanism.
The new consensus mechanism, i.e., PoS, would utilise significantly less energy as compared to PoW, thus pushing the crypto towards a greener ecosystem.
It is noted that Ethereum’s peers like Cardano, Polkadot and Avalanche are already using this mechanism, as a result, have much lower processing time and transaction fees.
Interesting Read: OMG! It’s Rising! The Rising OMG Network is Ethereum’s Scalability Solution
The PoS mechanism would greatly help Ethereum to overcome limitations in the scalability of the network, which could result in a 99.95% reduction in the crypto's total energy consumption.
The said move from PoW to PoS would help the world's second-largest cryptocurrency to maintain the high transactional speed while retaining its enhanced security protocols.
Can’t Miss Reading: Ethereum’s Difficulty Bomb Diffused
What could stop Ethereum’s price rally?
Considering the present circumstances, the only thing which might hamper Ethereum's upward push could possibly be the negative news about the Omicron variant and its continued spread.
This would create pressure among its investors and would also affect the overall risk sentiment, thereby triggering massive selloffs, resulting in the crypto’s prices being pushed back to the lower end.
Bottom Line
In spite of posting low prices over the past few days, Ethereum is making all the efforts to stop the downtrend and make a comeback.
