Ethereum Network Set to Undergo EIP-1559 Upgrade on August 4
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The Ethereum (ETH) network is set to undergo a significant platform adjustment, which should reshape the transitional procedure on the blockchain, and cut down the supply of coins in circulation to boost the price of assets. According to reports, the coding upgrade will occur on August 4.
Analysts predict that the upgrade, dubbed Ethereum Improvement Proposal (EIP) 1559, holds similar weight as the Bitcoin halving event, where periodic Mining reward adjustments reduce the supply of BTC.
While Bitcoin is the only store of value crypto asset, many believe that Ethereum is the industry’s top financial ecosystem infrastructure, which settles over $12 billion worth of transactions per day as of February this year.
Managing partner at DARMA, Andrew Keys, noted that the current Ether price reflects the impending network upgrade. He asserted that the upcoming update, and another in Q1 2022, should “easily quintuple the price of ether” by next year. At press time, ETH trades at $2,350.
EIP-1559 is a network upgrade that imposes a fundamental change on the transactional system on the network. The update would involve a lot of token “burning,” which should further reduce the supply of ETH and increase its value.
Key Ethereum Levels to Watch — July 30
Ethereum, along with the rest of the cryptocurrency industry, is witnessing a healthy recovery from the recent prolonged bear market. Despite the overwhelming bullish recovery, the second-largest cryptocurrency faces difficulty clearing the $2,430 resistance area.
The cryptocurrency is in the middle of a retrace to the $2,300 level after failing to climb above the $2,430 resistance. That said, ETH currently rests on an ascending trendline, which coincides with the $2,300 support, making that level critical for bulls. Failure of bulls to defend the $2,300 level could extend the correction below the $2,200 level.
Meanwhile, our resistance levels are $2,400, $2,430, and $2,480, and our support levels are $2,300, $2,200, and $2,100.
Total Market Capitalization: $1.53 trillion
Ethereum Market Capitalization: $272.3 billion
Ethereum Dominance: 17.8%
Market Rank: #2
