Ethereum crashes dramatically after the London hard fork fell to “lows below USD 1700”

Ethereum is the second largest cryptocurrency in the world and the largest blockchain to support a wide variety of decentralized financial applications. The second largest cryptocurrency in the world is getting an overhaul aimed at increasing the transaction speed on the Ethereum blockchain and reducing its costs. The new update promises to lead Ethereum away from the energy-intensive “proof of work” mechanism for validating transactions and towards the more environmentally friendly “proof of stake”.

Many cryptocurrency experts and the media have predicted that the upcoming upgrade will drive up the price of Ethereum.

The price of ether is up 11 percent this week, hovering at a recent high of $ 2,650.

Today, the blockchain analysis company IntoTheBlock tweeted: “Ether has a 12-day winning streak behind it, the longest of all time.”

However, one cryptocurrency developer believes the price could drop to a new low of “below $ 1700” per coin.

Ahead of Ethereum’s London Fork Update, which will take place on August 4th, Hex and Pulse cryptocurrency founder Richard Heart tweeted today: “I think the price of Ethereum will drop sharply in 2 days when the EIP-1559 actually goes live. “

Mr Heart spoke to Express.co.uk and suggested that we are “currently in the ‘return to normal’ bull trap” for Ethereum.

This refers to the classic Wyckoff “Return To Normal” market cycle, where many bullish traders get trapped in a buy-in when the price declines in a downtrend.

He stated that major developments in cryptocurrencies preceded significant price drops.

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“It will activate in two days and randomly line up with a likely bull trap ‘return to normal’ on the market bubble psychology chart.

“A perfect storm for new local lows below $ 1700 once activated.”

Speaking to Coindesk about the upcoming Ethereum update, Greg Waisman, Co-Founder and COO of Global Payments Network Mercuryo said, “The highly anticipated Ethereum London Hard Fork Event will expose users to a more flexible and cheaper fee structure and introduce a slight burn effect that is in Is billed to make the airwaves deflationary.

“The coin has been on an uptrend since the weekend, and we can see that building up positive sentiment about the coin will rise to $ 3,000 in the coming days / weeks after the update.”

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