- Ethereum’s 50-day MA and 200-day MA look set to form a death cross later this month
- The death cross might be postponed or averted completely by the launch of the London Upgrade
- Ethereum developer Tim Beiko, has proposed the London Upgrade to be activated on August 4th at block 12,965,000
- Only time will tell whether the implementation of EIP1559 will translate to market gains for Ethereum in the short term
Ethereum is staring at a death cross between the 50-day moving average and the 200-day moving average as highlighted in the following ETH/USDT chart.
Also from the chart, the following can be observed:
- Ethereum’s death cross could occur around mid-July to early-August
- The 50-day moving average is also acting as considerable resistance for Ethereum at current levels of $2,380
- Ethereum’s daily trade volume is in the green, confirming renewed buying interest in Ethereum
- The daily MACD is also confirming a bullish trend
- The daily MFI and RSI are yet to enter into overbought territory at values of 62 and 56 respectively
Ethereum’s London Upgrade On August 4th Could Postpone or Negate the Death Cross
To note is that Ethereum’s highly anticipated London Upgrade had been scheduled for launch in the third quarter of 2021.
Yesterday, senior Ethereum developer Tim Beiko, proposed that the London Upgrade should be activated at block 12,965,000 which is estimated to occur on August 4th between 13:00 UTC and 17:00 UTC.
Therefore, chances are that Ethereum might continue on its bullish trajectory due to the London Upgrade in August and thus result in the postponement or negation of the earlier identified death cross.
EIP1559 Is Set to Turn Ethereum into a Deflationary Asset
Ethereum’s London Upgrade is also scheduled to include EIP-1559 which is aimed at solving the issue of high gas fees on the network as well as introduce a ‘fee burn’ mechanism with each transaction. Once EIP1559 is implemented, Ethereum will then become a deflationary asset.
Consequently, traders and investors will begin to view ETH in a favorable manner as a reduction in circulating supply will have a positive impact on the long-term price of Etheruem.
However, in the short term, only time will tell whether technical analysis of Ethereum as seen through the death cross on the daily ETH/USDT, will triumph over the hype and excitement surrounding the activation of the London Upgrade.
Ray Schuetz received a Masters Degree in computer science from The University of Texas (Austin). Ray has been working as a full-time blockchain consultant for the past 3 years. In his spare time, Ray enjoys writing for EthereumCryptocurrency.com and other crypto news publications.