⬆London hard fork went live today
Today Ethereum blockchain underwent major network adjustment, called London hard fork, also referred to as EIP-1559. This was the one of the most highly anticipated events in Ethereum history and investors remain optimistic about the upgrade which is expected to have a positive impact on Ether’s value thanks to several major adjustments, including the transition to the more-friendly proof-of-stake consensus which will change the way that transactions get processed on the network with added certainty. Today's upgrade will also reduce the supply of the Ether token which may positively affect its price. Improvement Proposal (EIP) 1559 should change the network’s fee structure so that a certain amount of the cryptocurrency’s supply will be “burned” or removed from circulation. Therefore blockchain’s net issuance of new units of the cryptocurrency should slow as a result of the change, ultimately helping to set a floor under the price. Some analysts believe that today's upgrade will help stabilize the price and reduce volatility therefore the digital token will trade more like a fixed asset.
Ethereum price bounced off the local support zone around $2450 and earlier broken upper limit of the descending channel and broke above 38.2 Fibonacci retracement of the last downward wave. Closing daily candlestick at current or higher level will form a potential bullish pattern - hammer formation. In this scenario the next targets for bulls are marked with following Fibonacci retracements. However, if sellers will manage to regain control then aforementioned support at $2450 may be at risk. Source: xStation5
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