Ethereum 2.0 Release Date Nears As ETH Breaks Multiple Records

Ethereum broke past $400 Thursday after several attempts in the last few weeks ahead of the launch of ETH 2.0.

Ethereum has seen an increase in price in the last three days, closing at $416 Thursday. While Bitcoin has already reached its 2020 high, Ethereum needs to close above $475 to reach the feat. Ethereum was trading at around $430 at the time of this writing. The immediate resistance rests at $440 before $450.

If Ethereum breaches past $500, it will be the first time the second-largest cryptocurrency is at the level since July 2018.

Bitcoin turning into a store of value in the face of economic uncertainty and political instability has fueled its ascent to new 2020 highs. Ethereum, an indicator for the wider cryptocurrency market, has been affected by the recent decline in the hype around decentralized finance. However, the upcoming Ethereum 2.0 is believed to be the main driver behind the recent price action, in addition to any spillover from Bitcoin's price behavior.

Ethereum 2.0, which will move the entire Ethereum network from proof-of-work (where miners confirm the transactions) to proof-of-stake (validators stake their ETH to validate the transaction), is expected to launch in December. The deposit contract for Ethereum 2.0 went live Wednesday and in just one day, the number of coins deposited to it reached 33,800 ETH. To become a validator, one needs 32 ETH.

For the first stage of Ethereum 2.0, called Phase 0, the number of Ether deposited in the address should be 524,288 ETH.

Ethereum creator Vitalik Buterin is among those who contributed to the deposit contract address. He deposited 3,200 ETH in it. Buterin's Ethereum wallet is publicly viewable on the blockchain.

Speaking to news outlet The Block, Buterin said he is confident the required 524,288 ETH will be reached. He cited how Ethereum's ether sale in 2015 started slow but had a huge spike in sales by day 12.

"So it's very possible that here too we'll see a quiet period and then lots of participation in the last week of November. But this is me just speculating, we'll see!" Buterin said.