Prominent trader Tyler Swope updates with his 261k subscribers the upcoming updates of Ethereum that are going to ignite a mega price rally for the crypto asset.
Ethereum London Hardfork Countdown
According to Swope, the Ethereum community, in general, is ecstatic about this upgrade because it brings in the long-awaited EIP, Ethereum Improvement Proposal, and especially EIP 1559.
The change called EIP-1559 will split up the roughly 13,000 new Ethers issued each day for miner payment “gas fees” into three parts. One of these, the minimal or base fee that users pay to process transactions, will now be removed from circulation in a process known as burning.
“The London upgrade is one of the most interesting and important upgrades in the history of Ethereum. This is a fee market change for Ethereum. This upgrade will change the first-price auction fee mechanism to a new basic fee model.”
He further explains that user base fees now account for somewhere between 25% to 75% of the gas fees paid to miners, Once these coins are burned, Ether’s current supply increases of roughly 4% a year will be reduced.
ETH Potential price
With all the strong fundamentals, the analyst says that he expects ETH to have reached $4,000–$5,000 by the end of December 2022.
“More and more mature investors have started buying Ether near its sessional lows with a long-term holding perspective. Nevertheless, the accumulation is not aggressive enough to continue the upside run near term.”
Ethereum broke through the first major resistance level at $2,585 and the second major resistance level at $2,636. The analyst says that the cryptocurrency watched its 200-day simple moving average as its price floor for a potential rebound move to the upside.
“Ether en route to $3,500 in the coming sessions, considering Wedge’s apex around $1,500 as the point of upside breakout. The pattern’s maximum height is shy of $1,800.”
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