Ethereum Network Upgrade (EIP-1559) Set for August 4
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Ethereum (ETH) core developers recently announced the proposed launch of the London hard fork upgrade, with a new mainnet scheduled for August 4 that would include the highly-anticipated EIP-1559 upgrade.
The EIP-1559 upgrade was a success, following its Ropsten testnet about two weeks ago. The upgrade would introduce a gas fee burn for every transaction, which should make ETH gas fees more predictable and lower the average gas fee by eliminating false estimations per bid. This modification would, in turn, foster scarcity for Ether, thereby transforming the cryptocurrency into a deflationary asset.
However, this correction in gas fees would be short-lived considering that Layer 2 solutions and pending the completion of Ethereum 2.0 could affect gas fees later on.
Thanks to the EIP-1559 upgrade, once the Ethereum mainnet gains significant traction from use, the burn rate would override the issuance rate on the network. This mode of action creates reverse friction for the asset, giving ETH its deflationary character.
Meanwhile, the London hard fork also includes four other improvement proposals, including EIP-3198, EIP-3529, EIP-3541, and EIP-3554.
The proposed mainnet activation is set for block 12,965,000, estimated to fall on August 4.
Key Ethereum Levels to Watch — July 7
Ethereum currently trades on a healthy recovery mode, as the second-largest cryptocurrency crosses the $2,400 level for the first time since June 17. Bolstered by the 200 SMA, our ascending trendline, and the prevailing broader bullish sentiment, we expect ETH to continue on this path to $2,500 over the coming hours.
That said, a fall from the current price levels should get repaired by the $2,300 support area.
Meanwhile, our resistance levels are $2,400, $2,480, and $2,570, and our support levels are $2,300, $2,200, and $2,100.
Total Market Capitalization: $1.48 trillion
Ethereum Market Capitalization: $279.1 billion
Ethereum Dominance: 18.9%
Market Rank: #2
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