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Ethereum exceeded US $ 1,682 as anticipated with the arrival of EIP 1559

Ethereum announced that EIP 1559 will be a feature that will soon be brought to the blockchain network.

EIP 1559 will be a major transformation for the network, as it will significantly decrease the amount of pending transaction fees that users will have to pay to use the Ethereum network. With the reduced supply of Ether, this will lead to cryptocurrency prices rising as demand increases.

EIP 1559 is expected to be implemented in July or August. Instead of an approximate price for transactions on Ethereum, network users will receive a basic fee. The basic transaction fee will be flared on the network, which means that Ethereum’s supply will decrease and Ethereum’s demand will increase due to scarcity and demand.

With the announcement that the EIP 1559 proposal was approved, Ethereum’s market price also benefited and skyrocketed. Will Ethereum test its historical record of $ 2,040 again in the short term?

Ethereum price analysis (ETH)

Judging by the four-hour chart, the price of Ethereum (ETH) started to rise, breaking through the resistance levels of $ 1,500 and $ 1,600 successfully, and a new bull run took place. Yesterday, at 8 pm on March 7, a long green candle was formed and successfully broke the strong resistance level of $ 1,682. If bulls can continue to control the market and stabilize the price above the $ 1,682 resistance level, the price of ETH could continue to rise to $ 1,800 in the short term. If it manages to climb higher and break the $ 1,800 mark, ETH / USD could test its historic high of $ 2,040 again.

At the time of writing, ETH is trading at $ 1,724.12, which is much higher than the $ 1,683.36 9-day moving average, as well as above the $ psychological barrier. 1,700.

From the technical analysis, Ether formed an inverse pattern of head and shoulders on the 4-hour chart. The left shoulder costs about $ 1,443 and the inverted head costs about $ 1,319. The right shoulder is approximately at the $ 1,475 level, slightly higher than the left shoulder.

While Ether has a good chance of beating its $ 1,682 resistance level, the cryptocurrency may face a critical headwind in the near future, with increasing bear sales pressure. On today’s chart, bears are struggling to push the price of ETH below the critical $ 1,682 level.

However, it is important to note that the advance of the standard head and shoulders inverted is not always smooth. In the short term, before an upward trend is expected from ETH / USD, the trading pair will likely fall below the pressure line before rising further.

The first level of support for Ether is therefore set at $ 1,682, which is also close to the 9-day moving average. If bulls fail to defend this level, the next level of support will be a 20-day exponential moving average of $ 1,628.

If there is a downward break below $ 1,628, Ether could dive to lower depths and fall to the $ 1,475 support level in the short term.

Source: BlockchainNews

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