Ethereum price inched higher on Monday pushing its market capitalization up to $306.41 billion. It hit an intraday high at $2656.00 before pulling back. However, its price outlook remains bullish.
Ethereum will undergo a major software upgrade that will significantly alter the way its transactions are made. Ethereum’s face-lift could potentially boost its price. The coding revamp is scheduled to go live on August 4.
The code, London, will reduce the growth pace of the Ether tokens supply. The upgrade is known as Ethereum Improvement Proposal (EIP) 1559 will split up the 13,000 new Ethers issued each day. According to analysts, the upgrade is similar to Bitcoin’s halving event that helped propel Bitcoin’s price.
The upgrade is expected to make users fees more predictable and reduce delays when transacting. It will burn a small number of tokens which will then be permanently taken out of circulation. By limiting the number of tokens, the currencies that remain in circulation become more valuable.
The new EIP-1559 will reduce Ether’s overall supply increases from roughly 4% to 3% in a year. The upgrade will create an initial revenue hit for miners supporting the network. However, as the Ethereum price grows, it will benefit the miners.
The upgrade will increase the number of transactions on the Ethereum network. It is also expected to raise the price of Ether and also make it easier for investors to understand Ether’s value.
ETHUSD Technical Outlook
For the past two weeks, the Ethereum price has jumped 46.90%. It is staged to extend its gains into August as it undergoes a new upgrade.
At the time of writing, Ethereum climbed 3.15% at $2635.91. On the daily chart, ETHUSD is trading above the 25 and 50-day exponential moving averages.
In the near term, I expect the Ethereum price to extend its uptrend. With new buyers on the network and the scheduled upgrade, the bulls market is eyeing the $2911.52. On the flip side, it could retreat to trade within the 25-day EMA at $2242.89