Experts predict that after the London hard fork, Ethereum will plummet to ‘lows near $1700.’
According to one expert, the price of Ethereum might drop to new “lows under $1700” in the days following the long-awaited London hard fork upgrade.
Ethereum is the second-largest cryptocurrency in the world, and its blockchain is the largest for supporting a wide range of decentralized financial applications. The world’s second-largest cryptocurrency is getting a makeover that should speed up and cut the cost of transactions on the Ethereum blockchain. The new version is expected to move Ethereum away from the energy-intensive ‘proof of work’ method of transaction validation and toward the more environmentally friendly ‘proof of stake’ method.
Many cryptocurrency specialists and news sites have projected that Ethereum’s price will rise as a result of the upcoming update.
Ether’s price has already increased by 11% this week, reaching a new high of $2,650.
“Ether has notched a 12-day winning streak, the longest ever,” blockchain analytics firm IntoTheBlock tweeted earlier today.
One cryptocurrency developer, on the other hand, believes the price might fall to a new low of “under $1700” per coin.
Richard Heart, the founder of the Hex and Pulse cryptocurrencies, tweeted today ahead of Ethereum’s London Fork Update on August 4th: “I anticipate the price of Ethereum will crash hard in 2 days when the EIP-1559 truly goes live.”
Mr Heart told This website that for Ethereum, “we are currently in the ‘return to normal’ bull trap.”
This is a reference to the Wyckoff “return to normal” market cycle, in which many bullish traders are trapped in a buy-in as the price pulls back in a downward trend.
He explained that substantial price drops in cryptocurrency have always been preceded by major changes.
“When it comes to highly speculative markets like Bitcoin and Ethereum, there are price run-ups for important news events,” he continued.
“The debut of Bitcoin futures on the Chicago Mercantile Exchange in 2017 was the day of the $20k high, which then dropped to $3k.
“The $65k high was reached on the day of Coinbase’s launch this year, and we’ve seen a 56 percent slide to $28.6k thus far.
“Right now, the EIP-1559 is the most significant piece of Ethereum news in a long time.
“It’ll go live in two days and coincides with a possible bull trap ‘return to normal’ on the market bubble psychology chart.
“After it triggers, it will be a perfect storm for fresh local lows under $1700.”
Greg Waisman, co-founder and COO of Brinkwire, spoke to Coindesk about the next Ethereum update.