Crypto News

Ethereum crowd fumed over delayed London fork as ETH crosses $2.4K

ethereum ETH london fork
Image by ErikaWittlieb from Pixabay
  • The promised Ethereum upgrade London fork is not coming on schedule, to the disappointment of the investors.
  • Key aspects of the upgrade ahead
  • ETH rally brings a 38 percent total gain since June 25 and puts the price at $2,388.

YEREVAN (CoinChapter.com) – The Ethereum (ETH) network previously scheduled its much-anticipated upgrade, dubbed London fork, to launch on July 14. However, the London fork mainnet won’t be ready to run in a week. The target date is now August 4. Traders and investors are on the edge of their seats as the expectations for the upgrade, and subsequently, the price runs high.

Lark Davis, a crypto and stock investor with an extensive online following, commented on the developments.

The London fork expectations have been stirring the crypto community for a while now, as the upgrade offers several significant improvements that will solve the scalability issue and put an end to Ethereum’s notorious gas fees.

London Fork: key takeaways

Ethereum network suffers from severe congestion, given its heavy utilization across booming crypto industries, including decentralized finance, non-fungible tokens, and stablecoins. Moreover, the high transaction volumes lead to infamous gas and transaction fees.

The London fork proposes to remedy the situation by offering 5 key Ethereum Improvement Protocols (EIPs): EIP-3554, EIP-3198, EIP-3529, EIP-3541, and EIP-1559. However, the latter caused much debate, as it is a transaction pricing mechanism that will establish a fixed-per-block transaction fee.

Before any of the EIPs can run on a mainnet, the network scheduled several testnets weekly. The first, Ropsten testnet, launched on June 24. Mikhail Kalinin, a researcher at ConsenSys software engineering firm, commented on Ropsten. “The purpose of this first testnet was to test our scripts, coordination, finality, and the various issues in coming to consensus between clients,” he said.

The second testnet – Goerli, ran on July 1. The third one – Rinkeby, is scheduled to launch today, on July 7, at block number 8897988. Next in line is Kovan testnet.

As the Ethereum network delays releasing the much-anticipated London fork (Ethereum 2.0), its native token ETH gained 18 percent since the Goerli launch on July 1.

Also read: Ethereum eyes $2,200 spot target ahead of $230M ETH options expiry on Friday.

Ethereum daily chart

Ether has been on a rally since June 26 and logged a 38 percent advance. The ETH/USD exchange rate stood at $2,388 in the London session after briefly hitting the $2,400 benchmark. The token traded in a falling wedge, a formation with two converging trendlines constricting the price movements. It is a reversal pattern that predicts a bullish breakout with subsequent gains once the pattern is exhausted.

Ethereum indeed managed a bullish break out on July 4. After a minor setback, it rebounded from the 20-day exponential moving average (EMA-20: blue wave) and made it all the way up to the 50-day simple moving average (SMA-50: red wave).

Ethereum trading in a bullish descending wedge formation. Source: ETHUSD on TradingView.com
Ethereum trading in a bullish descending wedge formation. Source: ETHUSD on TradingView.com

Moreover, the EMA-20 corrected its trajectory upward in the past sessions. As a result, the daily chart hinted at a looming golden cross, a long-term bullish predictor. The golden cross will occur when the EMA-20 crosses above the SMA-50, reversing the bearish trend.

Also read: More Ethereum (ETH) moves out of crypto exchanges as London hard fork approaches.

The latest price rally was brought on after the first testnet of the Ethereum London fork upgrade. It promises fixed transaction fees and relief from the congestion that stems from the overwhelming number of transactions. The Ethereum community did not meet the upgrade delays well. However, the ETH bulls keep pumping the price higher.

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Lilit Chichyan

Lilit is an enthusiastic writer, skilled in 3 languages, and interested in writing about the tech world, trading, art, and science. She also has a background in psychology and marketing, which helps deliver the right message to the target audience. Lilit is creative and fast and has the experience of writing for both big marketing companies and small websites and blogs.

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