- Around 75% of Etheruem nodes are prepared for the London hard fork.
- The highly anticipated upgrade is expected to occur on block 12,965,000 scheduled for August 5, following a slight delay.
- Ethereum price managed to slice above $2,700 for the first time since early June.
Roughly 75% of Ethereum nodes are ready for the upcoming upgrade, the London hard fork. The ETH London upgrade is expected to take place on block 12,965,000, scheduled to occur on August 5.
Ether would not become a deflationary asset by default
One of the most highly anticipated events in Ethereum history, the London hard fork is expected to go live soon, as 75% of ETH nodes are fully prepared for the occasion. Node operators must update the client version that they run in order to be compatible with the upgrade.
Ethereum London ready client distribution
The London hard fork will introduce five Ethereum Improvement Proposals (EIPs), including EIP-1559, an eagerly awaited proposal that will present a base-fee burning mechanism.
EIP-1559 changes the way transactions get processed on the Ethereum blockchain, by indicating transparent pricing on the base transaction fee that is paid to miners in Ether. Part of the tokens will be burned and taken permanently out of the ETH circulating supply.
The annual supply change of Ether could be reduced by 1.4%, and around 6,000 ETH would be burned per day. As transactions occur on the Ethereum network, ETH could become increasingly deflationary.
However, investment banking giant Goldman Sachs believes that the London hard fork would not make ETH a deflationary asset by default.
The New York-headquartered firm believes that the upgrade will decrease the Ether inflation rate, and the base fee burnt will need to offset the issuance rate of Ethereum for the second-largest cryptocurrency by market capitalization to become deflationary.
Goldman Sachs further pointed out that an increase in Ethereum network activity could mean more ETH is burned, and there would be less Ether to be resold in the market, potentially reducing miner selling pressure.
There remains doubt on how the community will respond following the Ethereum London upgrade. Miners could see a huge impact from EIP-1559, and according to Compass Mining, ETH miners could see their revenue dip by 20% to 30% due to the fact that a part of their fees will be burned.
Ethereum price climbs above $2,700 and anticipates bigger moves
Ethereum price has seen a 12% surge on August 4, ahead of the London hard fork, closing above a critical resistance level.
The recent spike could also be attributed to the surge in Ethereum social volume, according to Santiment.
Ethereum social volume
Ethereum price managed to slice above the 100-day Simple Moving Average (SMA), recording a reaction high at $2,772. Currently, the 78.6% Fibonacci extension level at $2,710 continues to act as stiff resistance for ETH.
Should Ethereum price be able to close above $2,710, this could open up the possibility of a rally toward $2,994, the May 20 high. Bigger aspirations and bullish sentiment following the upgrade could incentivize ETH to tag the 127.2% Fibonacci extension level at $3,339 in the longer term.
ETH/USDT daily chart
However, investors should pay attention to the Relative Strength Index (RSI), which suggests that Ethereum price was slightly oversold on August 2 and August 4.
If Ethereum fails to galvanize investors’ enthusiasm following the London hard fork, ETH should discover meaningful support at the 61.8% Fibonacci extension level at $2,493, and the second line of defense at the 38.2% Fibonacci extension level at $2,187, coinciding with the 50-day and the 200-day SMAs.
Further selling pressure could see Ethereum price fall into the demand barrier, which extends from the 23.6% Fibonacci extension level at $1,999 to the 38.2% Fibonacci extension level at $2,187.
Massive drop in Ethereum exchange reserves signals imminent supply shock, ETH eyes $8,000
- Over 400,000 ETH was pulled out of Coinbase, dropping exchange reserves and driving a supply crisis.
- Average Ethereum gas fees stay above $20 due to an increase in pressure from smart contracts on the network’s blockchain.
- Analysts who are bullish on Ethereum expect ETH price to cross $5000 in an upward climb.
Institutional investors are bullish on Ethereum with rising capital inflow. Ethereum reserves across exchanges have dropped as outflow increases.
Coinbase notes massive Ethereum exchange outflow
Coinbase noted a withdrawal of 400,000 Ethereum tokens, and according to community-driven crypto platform CryptoQuant, it is likely that the outflow was institutional activity. Analysts expect a bullish impact on ETH prices.
400,000 Ethereum tokens are the equivalent of $1.5 billion, withdrawn from the second-largest cryptocurrency exchange. The exchange outflow indicator is considered a sign of increased outflow and a supply shortage in Ethereum.
Ethereum Exchange Outflow.
Ethereum has posted over nearly 20% gains in the past two weeks.
Interestingly, there is a spike in whale activity on the Ethereum network. Over $188 million worth of Ethereum was moved between two anonymous cryptocurrency wallets in a single transaction.
A mysterious whale initiated the transaction, and it was sent to an unknown recipient. The details of the transaction are as follows:
Whale activity on the Ethereum Network.
With news of Bitcoin ETF getting approval by the Securities & Exchange Commission next week, experts are awaiting Ethereum’s turn. Analysts are of the opinion that following Bitcoin ETF approval, capital inflow to Ethereum and altcoins will increase.
Pseudonymous cryptocurreny trader and analyst @jroberts3334 has set a target of $8000 for Ethereum for February 2022.
My target for ETH is 7600/8000 by Feb. The Altair upgrade is coming quickly on Oct 27. The merge of POW/POS and L2 upgrades are coming quicker than people realize – I believe it will coincide nicely with this next leg higher in BTC (after 1 more possible dip).— jrob 🍌₿ Ξ (@jroberts4334) October 14, 2021
Simon Dedick, Managing Partner of Moonrock Capital, is bullish on Ethereum; he tweeted:
FXStreet analysts have evaluated the ETH price trend to analyze where altcoin is headed next. Analysts have set a target of $5200 for ETH price.
Ethereum 2.0 Next Steps to Mainnet Shared by Ethereum Foundation
Ethereum (ETH) developers have entered final phase of testing before hotly anticipated ETH1-ETH2 transition
Tim Beiko, Ethereum 2.0 researcher and coordinator at Ethereum Foundation, published a recap of Amphora devnet launch. Why is this milestone special for progress to Ethereum 2.0?
Amphora workshop has been completed successfully
Mr. Beiko has taken to Twitter to share his blog post about the Amphora workshop that launched the interoperable devnet of Ethereum 2.0 Merge.
Fresh off the press: here's a recap of the #amphora interop event 🏺 highlighting the next steps to The Merge, with links to devnets and an A+ infographic by @trent_vanepps. Enjoy 😁! https://t.co/L66OymXFmA— Tim Beiko | timbeiko.eth (@TimBeiko) October 15, 2021
As such, Ethereum’s (ETH) core developer community entered the last phase of its incentivized testing, i.e., “devnets.” Ethereum 2.0 devnets should be considered “public networks with hardened specs for community to test.”
Amphora meetup was joined by a number of teams behind ETH2 client implementations: Besu, Erigon, EthereumJS, Geth, Nethermind, Nimbus, Lighthouse, Lodestar, Quilt, Prysm and Teku.
Amphora’s agenda included five milestones (M1-M5); all of them were accomplished successfully.
10,000 validators, 100 nodes: Welcome to Pithos
To achieve an M5 milestone, a network of 10,000 validators across 100 nodes launched on the top of proof-of-work (PoW) consensus, successfully transitioned to proof-of-stake (PoS) and finalized the chain.
On Oct. 14, 2021, the more stable version of Amphora testnet, Pithos, launched to facilitate upcoming experiments.
As covered by U.Today previously, Ethereum 2.0 Merge was successully activated in an interoperable multi-client testnet in a secret location on Oct. 8, 2021.
Ethereum Looks Set To Explode As 400,000 ETH Exits Coinbase
Coinbase Observes Outflow Of 400,000 ETH
As pointed out by a CryptoQuant post, about 400k ETH (1.5 billion at the current exchange rate) was withdrawn yesterday from the crypto exchange Coinbase.
The indicator used here is the Ethereum outflow, which shows the total number of coins exiting wallets of the exchange.
When the metric shows a big spike, it means a lot of ETH was withdrawn from the exchange. Investors usually take out a lot of coins to either hodl them or to sell them through OTC deals.
So, constant outflows can mean that there is a buying pressure in the market and investors feel bullish on Ethereum.
Now, here is how the chart for the indicator looks like for the crypto exchange Coinbase:
ETH's outflow showed a large spike yesterday | Source: CryptoQaunt
As the above graph shows, the crypto exchange Coinbase saw a spike of a massive 400k Ethereum in outflows yesterday.
Outflows this big can be a sign of activity from institutional investors as certainly normal holders won’t have these many coins to move around.
Institutional investors being bullish on ETH can mean huge things for the crypto. If ETH has to move to the next leg up, it will need a lot of money pumped into it, and this usually means whales like institutional investors need to get involved.
As these outflows already signal that institutional investors are taking their coins out of exchanges to perhaps hodl them, ETH’s outlook looks bullish.
At the time of writing, ETH’s price floats around $59.9k, up 9% in the last seven days. Over the last thirty days, the crypto has amassed 25% in gains.
The below chart shows the trend in the price of the coin over the last five days:
ETH's price makes a push up and approaches the $4k mark | Source: ETHUSD on TradingView
ETH has made a big push in the last few days as the coin now approaches a test of the $4k mark. It’s unclear at the moment if ETH can keep this momentum going and reach a new all time high (ATH) soon, or if it will falter once again.
f the outflows are anything to go by, the general sentiment seems to be bullish and institutional investors getting involved can help with the big price pushes the crypto needs to break important resistance lines.