09.08.202107:25 Forex Analysis & Reviews: Ethereum continues to gain traction after activating its 'London Hard Fork'

Ethereum is one step away from returning to the level of $ 2,900 and is also bypassing its competitor Bitcoin after upgrading its core network, which indicates a more limited altcoin supply. This week, the second-largest digital currency reached a two-month high and continues to rally around 280% over the year, leading against Bitcoin, which has so far gained 40% in the same period after declining from a record level of $ 65,000 in May this year. The software update of the Ethereum network indicates that it is well prepared for making further changes that will significantly reduce energy consumption. This was stated by the founder of the network Vitalik Buterin during a press conference. According to Buterin, the most significant change in the Ethereum blockchain that has come into force since 2015 shows that the network is quite ready for an even greater update to reduce energy consumption by 99%. The 'London hard fork' includes a major change in the form of reduced commissions, codenamed EIP 1559. It is expected that such changes will put upward pressure on Ethereum's price in the future. Buterin said in an interview with Bloomberg that 1559 is definitely the most important part of the London hard fork. The update is another proof that the Ethereum ecosystem can make significant changes at the right time, unlike other networks, bearing in mind a direct competitor – Bitcoin. According to the creator of the Ether, the transition to ETH 2.0 will be carried out through a merger and is expected by the beginning of 2022, but it may happen as early as the end of this year

Ethereum's technical picture:

After rising sharply to the area of $ 3,200, the specified altcoin has already got near the $ 2,900 level, which will most likely be tested soon. This is the area that is most problematic for Ethereum buyers. If buyers manage to protect this range, it will draw new players into the market who expect more attractive altcoin growth in the future. In this scenario, a direct path will open to the highs of $ 3280 and $ 3460. But if Ethereum returns below the $ 2900 level, this will not be surprising. The emphasis will shift to protecting the $ 2,450 level, so buyers will continue to focus on this range. A breakdown will bring the pressure back to the trading instrument. After that, the protection will have to be postponed to the lows of $2000 and $1900. The critical point passes at the low of $1750.

The fight for the values of the cryptocurrency market continues in the US Senate.

This weekend, the US Senate is preparing to vote on its $ 550 billion infrastructure bill, as Majority Leader Chuck Schumer's quick attempt to hold a vote on it on Thursday was hindered due to disagreements on cryptocurrency and other issues. It can be recalled that Senators Ron Weeden and Cynthia Lummis have come out in favor of exempting some market participants from paying tax fees. We are talking about miners who are engaged in bitcoin mining and network support, developers, validators, and other crypto industry participants who are engaged in activities not related to the exchange and storage of cryptocurrencies. Previously, all of them were classified as brokers, which are subject to very serious requirements and obligations to comply with the new legislation. This decision was met with serious criticism in the crypto community, and with such, it caused controversy in the Senate. The senators stated that a more detailed classification of the crypto community participants is needed since some of them simply cannot meet the new legislative requirements by definition. Currently, the vote has been postponed until Saturday, and until that time, it is necessary to change the provision of the bill concerning the reporting requirements for transactions with cryptocurrency for tax collection.

The cryptocurrency industry has said that the bill's original version unfairly targets them and has a too wide coverage. Now, the Senate has two versions of the bill at once, in the second amendment of which new requirements in the field of tax reporting will be applied to Proof-of-Stake validators and protocol developers. The White House has already expressed support for the second version of the amendments, which contains the necessary changes to reduce the requirements for several participants in the cryptocurrency community, as well as to reduce the payment of taxes on the crypto market.

As for the technical picture of Bitcoin, it returned to the resistance of $ 41,100 again, which returns the interest of the bulls, who have been relying on the breakdown of this range for a long time. The cryptocurrency will only sharply grow to the $ 46,700 area and then to a strong $ 52,000 level if it really consolidates above the level of $ 41,100.