Ethereum price set to climb higher after the London Hard Fork: Expert analysis
Since embarking on its latest bull run, Ethereum (ETH) has been able to incur monthly gains over 30%.
- The London Hard Fork seeks to ease out some of ETH’s existing bottlenecks, particularly its high fees and low transaction throughput rate.
- Historical data suggests that Ethereum’s value tends to soar following a major protocol upgrade.
- Over the past week, the total market capitalization of the crypto industry has increased by nearly 6%.
Ethereum has been surging, as is made evident by the asset gaining 6+% over the last 24 hours. This latest climb seems to have come on the heels of the highly anticipated London Hard Fork, which is finally going live on the ETH network after at least a month of rigorous testing. At press time, ETH is trading at $3,078.
However, it will be interesting to see whether the currency can sustain its ongoing price action, especially because in the past, protocol upgrades usually boost the price of various digital currencies, only to be followed by subsequent dumps, allowing investors to lock in short-term gains.
On the subject, pseudonymous independent analyst Murfski believes that if ETH breaks past the $3K threshold, there is a good chance that the asset may slip back down to the $1.8K zone, adding: “In my defense, I was bullish at the bottom. As we approach the range highs, you better be cautious. Good luck.”
Just as a quick recap, Ethereum’s London Hard Fork seeks to introduce a number of Ethereum Improvement Proposals (EIP) — most notably EIP 1559 — which seeks to address the currency’s current throughput issues as well as stabilize its high transaction fees. The upgrade also seeks to make the altcoin deflationary in nature by burning off gas fees, potentially making Ethereum more attractive to HODLers.
Hard forks have helped push Ethereum’s price historically
To gauge what the future may hold for ETH, one need only look at how previous protocol upgrades have had an impact on the altcoin. Popular crypto analyst Josh Olszewicz highlighted that historically speaking, most of ETH’s local highs usually come after a period of 80 days after a major upgrade. “If London is similar, local high should occur around late October or early November,” he added.
Olszewicz’s sentiments are shared by other crypto economists, who believe that while some of Ethereum’s major gains may have already been factored in, there is still a lot more room for the currency to foster and grow in the near- to mid-term, price-wise.
The general mood surrounding the crypto market seems to be quite positive at the moment, as is highlighted by the fact that the total capitalization of this space has increased by nearly 6%. But experts believe there is still a chance that Ethereum may be faced with some pullback as soon as the London upgrade goes live. Therefore, it will be interesting to see how the coming few days play out for the world’s second-largest crypto.
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