🔥 Ethereum Huge News: New Protocol EIP 1559

5 авг. 2021 г.

Ethereum is one of the major performers of the current market. Not only is ETH performing outstandingly, it's also leading the market. ETH pumps, the rest follows.

One of the major catalysts for the current ETH price action is the fact that there's some great news coming out. As of today, ETH has upgraded it's token protocol to (EIP) 1559, which is arguably one of the biggest upgrades that ETH has seen to date.

What is (EIP) 1559?
At the moment, it's very costly to make an ETH transaction since users have to bid manually how much they're willing to pay for a transaction to get accepted by the network.

Under the new protocol, this bidding process is automated and will vary based on the amount of congestion of the network.

Another major change under EIP-1559 is that part of every transaction fee will be burned, which will reduce the supply of ETH and create a higher amount of scarcity, potentially leading to a further increase in price.

Price Action
Over the past couple of weeks we've seen a double bottom (triple if you count the May wick) price reversal pattern, also known as a W-shaped recovery. With ETH breaking through the $2600 resistance level and retesting it, a solid support has been created at the $2600 level. If ETH manages to cross the green area of resistance, I'm willing to bet that we're going to see $4000 again in the coming weeks.

Furthermore, ETH dominance is currently going through the roof, further boosting the confidence in this coin.

Happy trading!