ETH price has been generally bullish as it trades in the green for the 13th day running since July 21. This saw Ethereum price reach highs around $2,700 on Sunday for the first time since June 07. This bullish rally has been attributed to much-awaited launch of the Ethereum London hard fork.
Ethereum’s London Hard Fork to Debut on August 04
The much-publicised Ethereum London hard fork is expected to launch within the next two days, as part of the plans to release Ethereum 2.0. This is expected to replace the current proof-of-work protocol on Ethereum’s platform with proof-of-stake.
Note that Ethereum’s protocol update includes five Ethereum Improvement Proposals (EIPs), particularly notably EIP 3554 and EIP 1559.
- EIP 1559 introduces changes ETH price’s fee structure to make it less inflationary. According to CoinDesk, this protocol change is very controversial because it aims to burn part of the fees, hence reducing miner revenue.
- EIP-3554 is a proposal developed to delay the commonly known “difficulty bomb” to the second quarter of 2022. The bomb will make it difficult for ETH miners to validate and process transactions through solving complex cryptographic problems, essentially making the Ethereum network slower.
These changes may bolster Ethereum price significantly upward.
ETH Price, The Week That Was
Ethereum price rallied 16% in the week ending July 31. Slightly falling short of the approximately 17% gain from the previous week, ETH closed the week at around $2,560.
The bullish week saw ETH price record an intraweek low of around $2,138 on Tuesday before recording a 5% rise on the same day. Wednesday was marked by market indecision as the smart contract’s giant closed the day with a bullish doji stick as Ethereum price was strongly rejected from the $2,330 major resistance now turned support.
ETH finally broke through the major resistance at $2,330, the $2,400 psychological level and the 100-day SMA to close the week at around $2,560.
Trading the week in the green including a 6.47% gain on Wednesday and filliping the 100-day SMA at 2,500 from resistance to support was the week’s upside.
ETH Price Daily Chart
Ethereum Price, The Week Ahead
At the time of writing, ETH price teeters around $2,621 and appears to battle immediate resistance around the $2,700 mark. Closing the week above the 100-day SMA was to bringing levels above $3,000 into the picture.
It is expected the implementation of the Ethereum hard fork will see ETH price to slice through the major resistance around $28,90. If this happens, Ethereum could break through the third major resistance level at the $3,500 psychological level to retest the May 10 all-time high around $4,384.
The general crypto signals for the week ahead remain bullish as seen by the positive parabolic SAR and the position of the MACD above the zero line on the daily chart.
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Nancy Lubale
