Author: @madridbg, through Power Point 2010, using public domain images. Die Wirtschaftsnews
Greetings and welcome dear readers of this prestigious platform, the topic that concerns us in this opportunity is associated with the movements in the price action that has developed the crypto asset Ethereum since the update London, which has nothing to do with the English city.
This update does have to do with the upward movement that has led the currency to position itself above $3,000 in an upward movement that exceeds 23% during the week. If we analyze the graph we can realize that the movement has presented a sustained growth since the implementation of the hard fork or fork level that took place in the network.
This new update seeks to incorporate an improvement in the fees generated by operations and transactions carried out in Ethereum network, generating greater accessibility for users in the costs of the same, part of the principle of payment of gratuity for miners as a mechanism that the currency is deflationary and can lower the costs of the commissions generated.
Fig. 2. Ethereum's new fork and an impressive bullish scenario. Author: Wilfried Pohnke
Although to date, there are still no relevant changes in commissions are expected to be observed as time goes by, what does show how powerful the new development is the burning or destruction of more than 10,000 ETH which on average translates into more than $ 30 million.
Therefore, the adjustment made is assumed as a giant step, which pushes us towards Ethereum Network 2.0 where we seek to transform a proof-of-work algorithm to a proof-of-participation one, which will allow to boost resources and decrease by more than 98% the energy consumption of these sophisticated network.
However, from my point of view the key aspect behind this fork and which presents an alternative to the users starts from the fact that each ETH of the basic commission will not go to the miner, on the contrary it will be taken out of circulation, which will give stability to the commissions, increasing the value of the asset by reducing the supply of it.
Fig. 3. ETH/USDT Pair daily time frame chart. Author: tradingview
While it is true that the hard fork gave a boost to the price of ETH, one would have to wonder if that movement based on only green candles will be sustained over time, from my way of seeing things it is necessary that there is a healthy pullback, looking to generate momentum that allows them to reach historical values that is above $ 4000 in the early months of 2021.
In this regard, I would like to know your opinion on this and what you expect Ethereum to do in the coming days.
BIBLIOGRAPHICAL REFERENCES CONSULTED
[1] RT actualidad. Ethereum 2.0 will consume 99 % less power than the current version, according to its co-founder Article: Online Access
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