As of August 5th, Ethereum ($ETH) is trading around $1800. The price is stuck below a descending trendline, adding a new factor to market outlooks alongside ongoing discussions around EIP-8361. Ethereum remains below the $1900 level, facing resistance in the range of $1887 to $1918. A breakout above this resistance could bring the price closer to the psychological level of $2000.
Technical Analysis and Price Movement
On the daily chart, the Ethereum price is trading below the 20-day Simple Moving Average (SMA) at $1887.53. The 100-day SMA forms another resistance at $1918.22, and the 200-day SMA is at a higher level of $2074.86.
In this configuration, Ethereum is below three of the four major moving averages. However, the price is still above the 50-day moving average at $1788.07, continuing the recovery that began after falling to around $1500 in June.
On the 4-hour chart, it can be seen that Ethereum is approaching the breakout zone between $1875 and $1885. Closing above these levels could create an opportunity for buyers to retest the $1900 level. However, momentum remains weak, and a clear uptrend has not yet formed.
EIP-8361 and Its Market Impact
EIP-8361, a proposal being discussed among Ethereum developers, aims to reduce the number of consensus-level rewards issued as the share of staked $ETH increases. The proposal envisions burning an increasing portion of validator rewards. It is suggested to burn all newly issued consensus-level rewards after a 50% staking share is reached. However, this proposal has not yet been approved, and there are differing opinions within the Ethereum ecosystem.
Analyst Michael van de Poppe stated that the $1800 level is a critical support level, and a breakout above $2000 could make levels of $2300 and $2500 accessible. However, Ethereum's ability to recover after reaching the $2000 level seems to depend more on market demand and institutional investment than on EIP-8361.
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