Ethereum Hits All-time High on Supply Scare after Upgrade
Ethereum hits new all-time high over improvement proposal seeking upgrade, indicating possible supply drop which is already fueling buying interest as price adjusts upward.
On the other side, Bitcoin price continues to struggle to break out, falling to $55k as recovery continues to stalling as buyers become weak.
Ethereum Improvement Proposal (EIP) 1559 will be packaged with the London hard fork this coming July regardless of the mining industry’s discontent with the proposal, according to the recent All Core Developers call.
It is expected that at least five other EIPs are likely to join EIP 1559 in London as the upgrade to the Blockchain transaction seeks to fix numerous issues with Ethereum user experience, its developer explained.
Explaining motivation behind the proposal, developers said Ethereum historically priced transaction fees using a simple auction mechanism, where users send transactions with bids (“gasprices”) and miners choose transactions with the highest bids, and transactions that get included pay the bid that they specify.
It said this leads to several large sources of inefficiency including mismatch between volatility of transaction fee levels and social cost of transactions, needless delays for users.
Other reasons include inefficiencies of first price auctions, instability of blockchains with no block reward.
Market data indicates that the proposal has garnered some of the largest support to date from Ethereum application creators and users alike, given the current difficulty of selecting a correct transaction fee.
Miners and mining pools, on the other hand, have been gathering in opposition against the proposal, though Ether (ETH-USD), however is now trading at a new all-time high just shy of $2,600.
Similarly, Bitcoin continues to struggle below the 50-day moving average as analysts explained that buyers must defend $51K support to stabilize the uptrend.
Read Also: Bitcoin Recovery Stalls as Transaction Fee Hits All-time High
Bitcoin (BTC) is holding short-term support and was trading around $54,000, noting that cryptocurrency is now below the 50-day moving average as upside momentum continues to slow.
Buyers will need to defend support around $51,000 to stabilize the long-term uptrend”, Crypto analysts said after noting that the relative strength index (RSI) on the daily chart has made a series of lower highs this year, which reflects slowing upside momentum.
BTC has remained in a consolidation phase since February as buyers were quick to take profit around the $60,000 resistance zone.
The daily RSI is approaching oversold territory, which will likely occur as price continues to drift below the 50-day moving average. Lower support is around $42,000 similar to February 28, which preceded a price rally.
Ethereum Hits All-time High on Supply Scare after Upgrade
