Ethereum 2.0 is the biggest upgrade event for Ethereum since the project was first founded and launched as a blockchain-based supercomputer that introduced smart contracts to the world of crypto and blockchain. In 2020, the team released the first stage of the update, dubbed Beacon Chain, which went live in December. Following, the second stage should become live somewhere in 2021, which may positively affect the price of ETH. Can Sharding take Ethereum to new highs in 2021?
Ethereum Price Analysis: Ethereum Coming Off with a Strong Start in 2021
Ethereum commenced 2021 at a rather bullish pace of growth, partially being driven by the bull run of the top crypto, Bitcoin (BTC). However, it is presumed that ETH is talking about a bullish pace of growth also due to the upcoming update, Ethereum 2.0. The announced upgrade should make transactions on the network faster and completed under seconds thanks to a more efficient protocol and sharding. The released update, Beacon Chain, is not changing the way Ethereum is operating, for now. However, Beacon should introduce staking to the network. With the beginning of 2021, ETH reached the value of 1,000$ and above for the first time since January 2018, which indicates that Ethereum is preparing to reach new highs as it finds strong support at 1,000$, currently trading at the value of around 1,100$.
Ethereum Price Prediction: Can Ethereum Reach 2,000$ in 2021?
The release of the second stage of Ethereum 2.0 is scheduled for 2021, dubbed Shard chains. Sharding should expand the overall capacity of Ethereum to store data and process transactions, making the network faster and more scalable when compared to the current version of the system. Presuming that the update will be a success, ETH might spike to new highs with 2,000$ being the next target.
Image credits: Cover photo taken from Nick Chong on Unsplash
