Can Ethereum Price Surpass $2,000? EIP-8361 Discussions Continue

Ethereum (ETH) is trading around $1800 as of August 5th. The price is stuck below a descending trendline, adding a new variable to the market outlook alongside the ongoing discussions surrounding EIP-8361. Ethereum remains below the $1900 level, facing resistance between $1887 and $1918. A break above this resistance could bring the price closer to the psychological $2000 level.

Technical Analysis and Price Movements

Ethereum’s daily chart shows the price trading below the 20-day simple moving average (SMA) at $1,887.53. The 100-day SMA forms another resistance at $1,918.22, while the 200-day SMA is at a higher level at $2,074.86.

This configuration leaves Ethereum below three of the four major moving averages. However, the price is still above the 50-day SMA at $1,788.07, continuing the recovery that began after the drop around $1,500 in June.

The 4-hour chart shows Ethereum approaching the breakout zone between $1,875 and $1,885. A close above these levels could create an opportunity for buyers to retest the $1,900 level. However, momentum remains weak, and a clear uptrend has not yet formed.

EIP-8361 and Its Impact on the Market

EIP-8361, a draft proposal discussed among Ethereum developers, aims to reduce consensus layer issuances as the staked ETH rate increases. This proposal envisions burning an increasingly larger portion of validator rewards. It suggests burning all newly issued consensus rewards once a 50% staking rate is reached. However, this proposal has not yet been approved, and differing opinions exist within the Ethereum ecosystem.

Analyst Michaël van de Poppe stated that the $1,800 level is a critical support and that a break above $2,000 could make the $2,300 and $2,500 levels accessible. However, Ethereum’s ability to regain the $2,000 level seems to depend more on market demand and institutional flows than on EIP-8361.

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