As the market prepares for the introduction of the London Hard Fork, the price of ethereum has plummeted due to a recent market crash. The fork is set to go live on August 4th of this year, and so far, investors appear to be enthusiastic about the change. The demand for ethereum has increased in recent weeks, but this desire hasn’t been enough to keep the altcoin’s price stable.
Ethereum had previously risen from the $2,000 trading area to the $2,300 trading level. It even went as high as $2,400 at one point. But this was just for a short time, as the coin dropped back to $2,300.
The coin price appears to have remained rather stable due to market interest. This grip, however, did not endure long. The introduction of EIP-1559 with the London hard fork approaches with each passing day, but the coin’s price remains in bearish territory.
According to recent market reports, ethereum continues to gain popularity, with the protocol adding 5 million new and unique addresses in just 30 days. Even so, it did not appear to have had much of an effect on the coin’s pricing. This drop comes after ethereum hit a three-week high.
What Is The Hard Fork In London? Many investors have heard this term thrown around recently but have no understanding of what it actually implies. Or what the fork’s activation means for the Ethereum network.
The hard fork will be an update that will alter the present mechanism’s transaction cost scheme. This, in turn, will aid in the reduction of the network’s existing high transaction fees.
The London hard fork is also intended to address the network’s mining difficulty. This improvement will make proof-of-work mining more difficult while also increasing the ease with which the proof-of-stake method may be mined. Validators will be required to carry out transaction confirmations on the network using the Proof of Stake process. Instead of using high-powered machines, such as the present proof of work process, which requires computers to solve complex problems in order to confirm transactions and my blocks, I will use low-power devices.
The London hard fork is part of a series of modifications being made to the Ethereum network in order to smooth the transition to ETH 2.0, which is set to happen in 2022. It is believed to contribute to the ethereum network’s goal of increased efficiency and scalability.
Ethereum Recovers Its Value So far, all indicators for Ethereum have pointed to bearish patterns. Currently, the price is trading below $2,100. With a possible downturn on the horizon.
The RSI has dropped below 50. At the age of 40, I’m still going strong. This value suggests that ETH is in a bear market right now.
The current dip appears to be due to investors’ growing belief that the hard fork would be delayed again. So far, the Ethereum technology advancements have been plagued by delays. Vitalik Buterin, the project’s founder, claims that the people working in the project are to blame for the delay. Internal team disagreements have been cited as a prominent issue in the last five years.
ETH 2.0, despite this, continues to advance with its updates. Investors continue to stake their coins, with a total of 6.1 million ethereum staked as of this writing. The current market capitalization of ETH 2.0 is more than $13 billion in dollars.