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Ethereum prices hit resistance

Ether prices have been steadily rising in anticipation of the Ethereum London upgrade for the last two weeks. Now they have finally to a halt with the hard fork only 24 hours away. The world’s second most popular cryptocurrency appeared to be continuing its upward trajectory, with Ethereum prices rising over the last 14 days – the most significant sustained price increase in ETH’s short existence — with Ether climbing above US$700 during that time.

However, the price of ETH has declined marginally since the crypto markets started today. Analysts believe that after surging from US$1776 on July 21 to US$2,700 yesterday, the price of ETH may have reached a stumbling block.

Over the last week, ETH has risen with Bitcoin. Bitcoin struggles to break through the 42k price level. Ethereum has broken a significant falling trend-line versus Bitcoin and is now trading above 0.06 BTC per ETH.

ETH halving

The London hard fork of Ethereum will substantially affect how transactions handle, miners rewards, and the amount of Ether coins. The upgrade will include ETH Improvement Proposal (EIP) 1559. It will give transparent pricing on user transaction fees that will pay and then burn — or intentionally destroyed tokens — to lower ETH quantity.

The fees paid from Ethereum users is made up of two parts. There is a base fee and a tip; the base fee burned with the London update. For the first time, Ethereum will have a mechanism to remove ETH from the supply and slow the rate of development of ETH supply in the market, said Alan Chiu, CEO of Enya.ai.

Ethereum’s halving event could have a more significant impact, according to Emons. The usefulness of Ethereum is how blockchain use and event expect to make blockchain faster and more scalable, requiring Ether for applications and therefore providing it with a competitive advantage over Bitcoin and other cryptocurrencies.

Ethereum upgrade affect DeFi scalability

Unlike Bitcoin, which primarily use to store money, the Ethereum blockchain has been significantly more ambitious since its inception in 2015. In fact, proponents of the blockchain argue that it has the potential to be the future backbone of the internet. Ethereum is a smart-contract platform. The first to market, it has served as the foundation for the bulk of decentralized apps (DApps) and decentralized finance (DeFi).

Edan Yago is a contributor to Sovryn, the Bitcoin-based Defi protocol. Yago feels that the London Hard Fork is a well-thought-out endeavour that would reduce the volatility of Ethereum’s transaction fees. He believes that some investors have lost sight of the upgrade’s goals and what its all about.

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