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Ethereum advocates are bubbling with impatience over London’s next hardfork set to take place at 12,965,000 block height on August 5.
Data from Cointelegraph Markets Pro and TradingView shows that the price of Ether fell from a low at $ 2,450 in the early hours of August 4 to an intraday high at $ 2,772 for an 8.2% gain on the daytime.
One of the most common occurrences in the crypto market is a large price increase before a major announcement or protocol upgrade, which is then followed by a price drop as those who have made a withdrawal anticipated to lock in their winnings and those who were late to the party became bag holders.
The Ethereum hard fork in London has been one of the most discussed events of 2021, so it would be shortsighted to assume that the price will only increase, a point highlighted in Murfski’s following tweet, a pseudonymous crypto analyst on Twitter.
Are we all ready to sell the news?
** Disable notifications ** pic.twitter.com/Ve7FgUHzcF
– Murfski (@Murfski_) August 4, 2021
As the chart provided shows, the analyst cautioned against assuming the price of ether would exceed $ 3,000. According to Murski, if the price does manage to hit $ 3,000, it could quickly be followed by a pullback to $ 2,000 if the token sells after the upgrade.
While nothing is certain, the historical trend of price declines following major developments should not be ruled out despite the bullish price performance observed on Ether.
Murfski said:
“In my defense, I was bullish deep down. As we approach the highs of the range, you had better be careful. Good luck.”
Hard forks have always been bullish for the price of ether
A glimpse of what to expect from the price of ether after the London hard fork can be gleaned by looking at how past upgrades have affected the price. According to cryptocurrency analyst Josh Olszewicz, local highs in Eth come on average 80 days after major upgrades.
$ ETH local peaks have historically occurred 80 days, on average, after previous hard forks
if London is similar, a local maximum should occur towards the end of October / beginning of November pic.twitter.com/YFtj9L1Kiz
– Josh Olszewicz (I won’t tell you) (@CarpeNoctom) August 4, 2021
These Olszewicz observations were confirmed by crypto economist Ben Lilly, whose detailed breakdown shows that the average returns after upgrades were “5.1% in the next 30 days, 28.8% after 60 days and 64.4% after 90 days”.
Due to this historic performance, Lilly is cautiously optimistic that there are still some gains to be made in the future for Ether after the London upgrade.
Lily said:
“While at first glance a lot of the gains that we typically see with Ethereum upgrades have already been made, I suspect there is still room. This is especially true when we are relying on our internal signals, which hint at an uptrend for ETH. London is definitely a great catalyst event to see unfold in the days or weeks to come. “
Related: DeFi attracts 2.91 million Ethereum addresses, according to ConsenSys
A short-term correction could occur in the short term
According to Cointelegraph contributor Michaël van de Poppe, there is a possibility of withdrawal once the hard fork has been implemented.
I expect a short term high to happen tomorrow on $ ETH.
Healthy fix after EIP-1559 before the heaviest bull run of all occurs.
– Michaël van de Poppe (@CryptoMichNL) August 4, 2021
While van de Poppe expects a near-term correction in the price of ether, his long-term outlook for altcoin is bullish and he predicts that “the heaviest bull run of them all” will come after the pullback.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.
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