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Friday, September 30, 2022

Ethereum Forks Today As Supply Crisis Heats Up!

Ethereum right now is a mere few hours away from the very important and highly anticipated london hard fork, which will introduce fee burning on ethereum very exciting times. We also have some great on-chain indicators for ethereum that are showing that this asset continues to be mega. Freaking bullish, all of that and more in today’s video, my name’s lark everyday. I make videos talking about cryptocurrency investing. So if that’s a topic that you would like to learn some more about make sure you are a subscriber to the lark davis channel, you’re gently tapping on that thumbs up button just for the youtube algorithm, obviously, and click on notification bell to know how to put Out a new video, so let’s just take a quick little peek here at the charts.

Before we get into all the different news, we can see ethereum still playing out the breakout from this w pattern that we had the intended target, for this is around three thousand dollars. We can see this beautiful, big green candle popping up here yesterday, that is the pre hard fork: speculation going on a lot of people, obviously coming in and pushing the price up on the anticipation of this big news event for ethereum this big and critical hard fork That we’re about to see come in now. The next major area of price resistance is right up here. In this purple box we can see basically around 2 900 is where we’ve had a lot of price resistance. Before top of this box is right around three thousand dollars, so these match up very well with the technical targets of the w pattern breakout here, however, however, we have had a pretty good run from the breakout on this uh.

This w pattern here so i’d like to just make you aware of the fact that a lot of big news events in the market tend to be a buy. The rumor sell the news kind of deal. So i did this highly scientific poll over here on twitter. Asking will ethereum be hit by a sell the news event with the london hard fork. Only a quarter of people think no ethereum is just too bullish.

Eip1559. Just too important. It’S gon na keep on pumping baby. Maybe the contrarians are right. In this situation, 41 percent say: yes, it always happens and, oh, it sure does almost always happen.

There’S a few examples. I can remember where a news event happened and we didn’t have a major sell-off, but yeah almost always. We get sell-offs on these kind of news events, and we did, as we saw yesterday, have a massive price rally likely on the anticipation of the fork of people trying to buy the rumor and sell the news at the last minute. Basically, so a lot of people went long on that recent dip there with the intention of doing short speculation on it, but the ethereum asset does remain very, very bullish. Shout out to the nineteen point.

Four percent of people who i don’t care, just stacking, more eth stack them wreath, come rain, come shine, hell or high water. Just stack up that a little bit more all the time eat the day makes the doctor go away. Some something like that. There’S probably a saying like that out there anyway, if you want to trade, some crypto currencies, maybe you want to trade bitcoin. You want to trade ethereum dogecoin, whatever your fancy might be.

You should get yourself an account over on buybit, it’s the best exchange for longing and shorting, a wide variety of different assets from bitcoin right on the way down through a whole bunch of different altcoins. They also just introduced spot markets with zero percent trading fees for market makers. If you use the link down below to start your account, you’ll get up to six hundred dollars in trading bonuses. Now, let’s talk about some of the bullish stats on chain that we can have a look at here, so these are all shared by lex maskovsky. He said: ethereum looks good on chain.

Indeed, supply on exchanges has been drained, supply and smart contracts ever increasing, et cetera, et cetera. He shared a few good charts and we’ll just we’ll dive into these charts and have a look at them. So this is ethereum balance on exchanges, so you can see the blue line here since the start of the year is pretty obvious. What has been going on the supply of ethereum on exchanges has been plummeting since the start of the year. Meanwhile, the price of ethereum has been going in the opposite direction.

That’S a pretty fantastic indicator of the strength of the ethereum market. The supply keeps going down, the demand keeps rising and the price keeps rising with it. You can just see that’s incredible. Incredible little x situation there now this was actually in response, a response to raul, pal’s tweet. It says just writing up my global macro investor report.

Don’T want to spoil it, but so many people forget to look at the ethereum on chain data, so he’s saying on chain data plus, of course, the hard fork plus the network growth equals double ludicrous supply shortage and he’s right, of course, the supply mechanics of what’s Happening right now for ethereum are absolutely nuts, so here’s another chart ethereum percent of supply in smart contracts. We can see it has gone up dramatically again. Since the start of the year we were around 17.5 percent at the start of the year. We are now up around 25 of the entire freaking supply of ethereum locked up in smart contracts.

That means it’s locked up in decentralized finance and different stuff. Like this, it’s locked up a whole different range of smart contracts out there, it’s not just d5. It goes way beyond d52, but a lot of it’s going to be in d5. Still that shows a real demand for the asset in the network for locking up in smart contracts. That is an incredible statistic: absolutely mind-blowing stuff right there.

Next, let’s look at the total value stake, so this is east 2.0 we’ve seen basically a steady climb, obviously the the staking contract only launched in december last year, but still just look at this again incredible stuff right here. A lot of ethereum has been flowing into the staking contract. Getting those sweet sweet staking, rewards for ethereum, incredible stuff right there, absolutely incredible, very strong demand from people to be staking in the eth 2.0 contract.

We also have this, which is a super interesting chart. So this is the short term holder knuckle chart. You can see here the emotional ballet that you can go through here in the crypto market and what i find most interesting about this is that during this whole, incredible rally for ethereum when it’s been an incredible rally for ethereum. During this whole thing, we only got up to optimism. That’S it.

We only got into the optimism range. We never got into the belief phase. We never even got anywhere close to euphoria. Think about that think about that. We went from optimism down into fear down into capitulation, which obviously was our uh.

Our w pattern that played out here. That was the capitulation time for a lot of ethereum investors, who, i guess, uh didn’t research the asset enough or thought it was going to go down. Another 90 percent they’re gon na get some sweet, sweet bargains, but uh. That, of course, didn’t happen. We did have a lot of capitulation happening here, but it’s just incredible that we saw ethereum rage up over four thousand dollars.

It was crazy, let’s cross crazy time, zone crazy stuff and we didn’t even get into the green zone. On this. We didn’t even get to the belief phase. That’S wild generally, when you consider a market top coming in. You want the euphoria phase, you want the greed phase, you need the blue on the chart.

We didn’t get the blue on the chart. We didn’t get to the belief phase so long story short, the crypto markets still have a long way to go in terms of hitting a blow off top here now. Let’S talk about london, london, calling seven hours, 13 minutes away from the time recording this video by the time i get this video edited and posted up, probably gon na be for like six hours or something like that, but it’s coming soon, as you can see, we’re Only one 1 900 blocks away from seeing this incredibly important upgrade coming through for ethereum. You can see here as well. I want to share this.

This is ethereum’s upgrade path, so you can see basically the future plans for ethereum we’re at a very important milestone. Right now, the london hard fork and eip1559 that comes along with that. This is a very important step towards the future of ethereum. Later this year, we’re going to have the altair upgrade now that’s for uh the eth 2.0 chain, so not for the ethereum that we’re using right now.

But this is particularly about east 2. 0 and then late this year, probably early next year, we’re merging we’re getting rid of proof of work, we’re going to prove a stake. Baby, it’s going to be very, very exciting! Then sometime 2022, you know sometime we’re gon na get uh sharding on chain. That’S coming later on, but this just gives you some perspective that this upgrade a critical upgrade major milestone and one of the final steps before we see ethereum moving to proof of stake.

Hopefully, later this year likely early next year now i’ve talked about what the london upgrade entails in a previous video, but i just want to go through a few quick highlights here. Just some reminders, particularly i just want to let everyone know. There is no fork coin to claim. So if you, because you’re gon na see this you’re gon na, see comments uh on youtube and twitter and all kinds of stuff saying, oh you’ve got ta, go out and do something and then you enter your private key and all your money’s gone. Don’T do that.

Don’T do that there’s nothing to claim your exchange, your wallet they’re, all going to upgrade for you. Just sit back, relax enjoy the fireworks as we get this upgrade come through now. The most important technical upgrade obviously is eip1559, a quick shout out to eip 3554, which delays the difficulty bomb until december 1st. This, of course, is around the move to proof of stake. You have to keep the proof of work.

Miners happy until proof of stake gets implemented uh later on this year, but eip1559. That’S the big boy. This introduces a base fee for ethereum it’ll, also make layer 2 transactions and layer 2 services much more reliable because of that base fee. They can know that with dependability, they can get their transactions put through onto the main chain without getting stuck in the mempool or without having to pay outsized gas fees and, of course, the fee burning. The fee burning.

That’S what gets everyone super super excited. The burning of the fees there will be fee burning coming in with this starting from a few hours from now, ethereum is going to catch on fire and start burning. How much ethereum is going to be burnt? Well, if, if we had had eip1559 active for the last 365 days, we would have burnt 2.96 million ethereum now that would have been a reduction of 76 percent in the annual ethereum inflation.

That’S incredible! So right now, around 12 000 ethereum are mined every day. That would mean that only 3 000 ethereum would be hitting the market from the miners. That’S crazy stuff man, holy cow, holy cow, a 76 uh supply reduction and, of course, you have to keep in mind that, as part of the eth 2.0 upgrade we’re going to have a 90 reduction in the annual inflation of ethereum as well.

So put those two numbers together and you get a deflationary ethereum when the triple halving comes in now that comes later, we’re going to talk about that much more later on. Obviously, but this is some big stuff. It’S no wonder. People are getting so excited about this upgrade because, even with the current uh inflation schedule, that’s an incredible amount of burned. Ethereum.

Remember remember we’re going through an ethereum supply crisis right now, basically, where the number of ethereum on supply is just on exchanges, it’s going down all the time. The number of ethereum going into smart contracts into the staking contract rising all the time and we’re about to see a situation where we’re going to have a 76 reduction in the ethereum supply coming into the market, crazy man. That is crazy, so very excited to see this upgrade coming forward. I feel, like we’ve, been talking about this for a long time, but hey it’s tech, it’s tech upgrades they take the amount of time that they take and things get delayed. But here we are a lot of people.

A lot of haters were out there saying. Oh, what’s never going to happen, never believe those haters when they come out talking about texts saying it’s never going to happen. It might take longer than expected, but there’s some serious brain power behind ethereum and it’s happening it’s happening anyway. Your question for today do you think we’re going to have the buy the rumor sell. The news effect come into play with this ethereum hard fork.

Will the price go down tomorrow after the hard fork happens, or is this just too fundamentally bullish for ethereum and we’re basically going to the frickin moon? Let me know down below in the comment section.


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