No hard fork love for Ethereum as the ETH price drops to a three-week low

The price of Ether (ETH) fell below $ 30,000 on July 20, alongside Bitcoin (BTC).

The ETH / USD exchange rate fell 5.41% to an intraday low of $ 1,720 – or around $ 400 above the 2018 all-time high, which would be a major psychological aid.

The pair’s bid rose as high as $ 1,994 on Sunday on the Coinbase exchange. Meanwhile, its price action looks very much like Bitcoin, the leading cryptocurrency that peaked at $ 32,450 on Sunday but then corrected to $ 29,507 during the trading day.

The crash also followed Ethereum network co-founder Anthony Di Iorio’s withdrawal from the crypto industry, in part due to personal safety concerns. Di Iorio, who is likely a large Ether holder, hinted to Bloomberg in an exclusive interview that he would liquidate all of his crypto-related holdings without explicitly mentioning the Ethereum blockchain’s native token.

“[Crypto is] really a small percentage of what the world needs, ”he said, adding that he“ wanted to diversify so as not to be a crypto guy but a problem solver ”. “

FOMO hard fork abandoned?

The most recent sell-off came despite the upcoming Ethereum network upgrade. Known as a hard fork in London, the major code update is another step to make Ethereum a faster and scalable proof-of-stake network out of the energy-intensive proof-of-work network.

But the most talked about feature in the upcoming hard fork is deflation. The upgrade is expected to burn some of the base fees paid to the miners, thereby reducing the supply of ether. The crypto education platform CoinMonk noted in March that the London hard fork upgrade could ideally burn 1 million ETH in 365 days, which is almost one percent of the network.

Grayscale, a New York-based digital asset investment firm, also wrote in a February report that deflationary momentum for Ether would prove extremely bullish. ETH / USD rebounded nearly 180% to a record high of $ 4,385 after the report was released.

The recent downturn in the Ethereum market has raised serious concerns about the ability of the London hard fork to halt the uptrend. For example, TradingView analysts said in their timeline update that inflationary pressures from US markets may have fueled the bearish sentiment of ETH / USD.

In particular, the US Department of Labor released its June Consumer Price Index (CPI) report last week. The latest data shows that US inflation rose 0.9% to 5.4% in June, the fastest just before the 2008 financial crisis. Bitcoin and ether prices fell after the report was released.

“Typically, digital asset investors viewed cryptocurrencies as a hedge against inflation,” wrote TradingView analysts, adding:

“In this case, however, the data itself is less important than what the Federal Reserve can respond to. Traders have started selling cryptocurrencies like Ethereum and Bitcoin, fearing that sustained rising inflation will cause the Fed to pull back on quantitative easing. Guidelines. “

Price increases completely the

But not everyone discounts. Konstantin Anissimov, managing director of the CEX.IO exchange, predicts the price of ether after the hard fork in London at 3,000 US dollars.

“As the situation stabilized, the Federal Reserve increased its balance sheet to more than $ 8 trillion since early 2020 – a significant increase,” he said, adding that prices were falling. The cryptocurrency market offers investors the opportunity to hedge against safe havens in the traditional markets.

“Market investors can amass money at a discount while having confidence in their ability to act as appropriate protection against inherent inflation. Both newly purchased coins will likely retest the new price at $ 45,000 and $ 3,000, respectively. “