Ethereum is showing some profits on the 7-day chart. The second-largest cryptocurrency by market capitalization has been on top of the charts for the past week, with a gain of 13.4 percent. ETH has outpaced Bitcoin and the majority of the top ten cryptocurrencies.
Ethereum will execute Hard Fork London and modify its fee scheme with EIP-1559 in mid-July. The base charge will be established at a predetermined amount and will be burned as part of the new model. As a result of this occurrence, ETH will become a deflationary asset.
As a result, many investors anticipate increased demand for ETH as supply decreases and scarcity increases. Hard Fork London, on the other hand, may have the opposite impact in the near term, acting as a “buy the rumor, sell the news” event. Justin Bennett, a trader, stated:
EIP-1559 is a significant milestone for Ethereum. There’s no doubt about that. When it opens in July, though, keep an eye out for a buy the rumor, sell the news sort of occurrence. The higher the price of $ETH rises before the launch, the more plausible this is. The wise investor does not follow the news.
This idea might explain why the price of ETH has outperformed nearly every other major cryptocurrency. ETH’s price is currently sitting at its June trend line, according to Bennett. After hitting a daily high of $2,350, the coin was rejected.
These Are The Levels To Watch For A New Rally In Ethereum
Despite its recent pump days, Ethereum appears to lack direction and may face new lows if it continues to be rejected at present levels. If the bulls can score a clean breakthrough from ETH’s current price range, the next few weeks might be crucial.
Michaal van de Poppe, an economist and trader, feels ETH should stabilize further at its present price and hold over $2,000 for the time being. It might retest the $2,300 and $2,400 range as a result. If ETH is able to break over this resistance, it may reach $3,000, as seen in the chart below.
If it breaks downwards, bulls could have another chance for a bounce around the $1,987 area. Otherwise, the price could tank further into the $1,700 and even $1,400 area.
In the ETH/BTC trading pair, ETH must flip the 0.063 sats region. If this level is clear and hold, van de Poppe expects appreciation towards the 0.075 region, as seen in the chart below.
