Ethereum’s EIP-1559 is scheduled for implementation this July during the London hardfork
EIP-1559 includes the implementation of a BASEFEE that will be burnt with each transaction
Burning of the BASEFEE makes Ethereum a deflationary asset
EIP-1559 coupled with incoming $1,400 stimulus checks, could send Ethereum back above $2k
Ethereum’s EIP-1559 is scheduled for implementation this July alongside the London hard fork. EIP-1559 is designed to solve the issue of high fas fees experienced on the Etheruem network during times of demand by doing the following.
By implementing a BASEFEE that will be decided by the protocol according to network demand
The BASEFEE will be burnt with each transaction
An ‘inclusion fee’ will be added to incentivize miners to process individual transactions
Transactions will determine the maximum fee (BASEFEE + inclusion fee) that can be paid at a certain time
EIP-1559 Could Send Ethereum Back Above $2k
News of EIP-1559 getting the go-ahead for implementation in July hit the internet on the 5th of this month which also marked a turning point for the price of Ethereum. Before the consensus was reached to implement EIP-1559, Ethereum was trading slightly above the $1,400 support area with the possibility of dipping lower alongside a weakening Bitcoin.
At the time of writing, Ethereum is trading at $1,675 in what looks like a return to bullish territory as illustrated by the daily ETH/USDT chart below.
$1.9T Stimulus Bill Could Send Ethereum Higher
From the chart, it can be observed that the price of Ethereum is back above the 50-day moving average (white) thus hinting of a continuation to higher levels. Additionally, trade volume is in the green with the daily MACD, MFI and RSI hinting of a bullish few days for Ethereum in the markets.
Also worth mentioning is that the US Senate approved a $1,9 trillion stimulus bill that would see eligible residents get up to $1,400 in ‘stimmy checks’. Chances are that the excitement surrounding the stimulus bill will positively affect the traditional markets with ripple effects being felt in the crypto-verse.
This means that Bitcoin, Ethereum and all of crypto will benefit from the new stimulus bill. Furthermore, chances are that the $1,400 will partly or wholly end up buying Bitcoin and other digital assets such as Ethereum. Therefore, Ethereum retesting the $2k price area is very much possible in the days and weeks to follow.