Ethereum completed the long-awaited London hard fork this week without major complications, which significantly boosted the mood about the second largest crypto currency, and whose price was able to climb back above the 3,000 US dollar mark.
As the data from Cointelegraph Markets Pro and TradingView show, there was initially a sell-off for Ether (ETH) shortly after the start of the hard fork, true to the motto “Sell The News”, before investors bought again and the price returned to over 2,800 US dollars. Heaved dollars. This was also the highest level since June 7, which, together with the jump from market leader to US $ 44,000, provided further tailwind, which had carried Ether to US $ 3,050 at the time of going to press.
Now that the biggest update of the year has been put into operation, we want to take a look at the short-term price development of the leading Altcoin.
Can Ethereum use the weekend?
The Twitter analyst Rekt Capital points out that Ether is now facing an important weekly closing that could significantly shape the further course of events.
In a corresponding price chart, the expert marks the USD 2,714 mark as a decisive hurdle that must be held after the recent upswing.
To that end leads Rekt Capital from:
“Ether is currently at one of the most important long-term resistance. If the resistance area at around 2770 US dollars can be jumped, there is little resistance to the record high of 4,400 US dollars. “
London reduced the supply
The analyst SpinTrades is in the same line and warns of a downturn to $ 2,600, although he sees a close above $ 3,000 as a good omen for further gains.
– SpinTrades (@SpinTrades) August 5, 2021
One of the most influential improvements brought about by the London hard fork is a fundamental change in the way Ethereum’s transaction fees work, through which a small proportion of the fees are now immediately “burned”. This ensures that Ether is not affected by inflation, but that the supply volume decreases over time, which could also drive the price up in the future.
The crypto trader Alex Krüger points out on Twitter that in the first seven hours after the upgrade was introduced, 2,160 ethers were burned for the equivalent of 6 million US dollars. If this pace is maintained, the second largest cryptocurrency may soon see a new upward trend.
2160 ETH burnt in just seven hours. Impressive.
(also, outstanding website: https://t.co/fJ6Wo6L2kg) pic.twitter.com/044eOtPhni
– Alex Krüger (@krugermacro) August 5, 2021