Here’s why Ethereum 2.0’s July launch may be a “sell the news” opportunity 🚨 This article is 5 years old...
Here’s why Ethereum 2.0’s July launch may be a “sell the news” opportunity
2 min read
Updated: May. 7, 2020 at 8:12 am UTC
Photo by Mike Bergmann on Unsplash
The highly anticipated launch of Ethereum 2.0 may be coming sooner than previously expected, as one platform is noting that it could come about as early as July of this year.
This transition will help Ethereum move to a Proof-of-Stake model that allows entities with over 32 ETH to become network validators in exchange for staking rewards, thus making it easy and lucrative for individuals to help validate transactions.
One analyst is noting that this event may be preceded by a notable upswing in Ethereum’s price, and that its July launch could provide investors with a “sell the news” opportunity.
Anticipated launch of Ethereum 2.0 coming as early as July, claims BitMEX
The transition to Ethereum 2.0 is intended to happen over an extended period of time, with the initial launch being just the first step in a multi-year transition from ETH 1.0.
This was originally slated to begin in January of this year, but technical hurdles have led to delays that have pushed its launch back to what now appears to be July of this year.
Popular crypto trading platform BitMEX spoke about this in a recent tweet, saying:
“Ethereum 2.0 is set to launch as early as July 2020, assuming no further delays. Given the decision to scale via sharding, we believe there is little choice other than to attempt this incredibly complex multi-year transition to a new network.”
In a blog post, the trading platform further went on to add that the launch may not be as important as it seems to be.
They explain that initially, Ethereum 2.0 will essentially be a test net for the PoS consensus system that is a main feature of the new network.
“The launch may not be as important of an event as it sounds. Initially, Ethereum 2.0 will mostly operate as a test network for the new proof of stake consensus system.”
BitMEX also notes that increasing the blockchain’s scalability appears to be the main motivation driving this transition.
Could this provide an ideal “short the news” opportunity?
Investors excited about the new PoS consensus model and heightened scalability stemming from the Ethereum 2.0 launch may help push the crypto higher in the near-term.
This upwards momentum, however, may offer traders an ideal “short the news” opportunity – a possibility mused by popular pseudonymous trader, Bitcoin Jack:
“If we get the rally on Ethereum I am expecting, then July seems like the perfect sell the news moment with the ETH 2.0 launch. Aligns with multiple analysis angles that expect June/July to be leading in to a market wide retrace.”
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
BitMEX
HDR Global Trading Limited owns and operates BitMEX which is a trading platform that offers investors access to the global financial markets using only Bitcoin.
Ethereum Foundation
Ethereum Foundation, a Swiss nonprofit organization, is a worldwide team of passionate developers.