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▲ Ethereum (ETH)/AI generated image
Ethereum (ETH) is attempting a rebound, holding the $1,852 support line despite controversy over the abolition of validator rewards.
According to crypto media outlet Coingape on August 5 (local time), Ethereum rose 0.88% to $1,876 on that day. The price showed an upward trend even after developers submitted Ethereum Improvement Proposal (EIP)-8361, which suggests eliminating validator rewards if more than 50% of the total supply is staked.
Jerome de Tychey, a developer involved in the proposal, explained that gradually reducing validator rewards could alleviate congestion in the staking entry queue. As per the proposal, if 50% of the total Ethereum supply is staked, validator rewards will cease.
Stani Kulechov, founder of Aave, criticized the proposal, stating it could harm Ethereum. Kulechov said, “It diminishes the asset value of Ethereum and limits its growth potential. If the proposal goes through, many people will shift their attention to other networks.” Mike Silagadze, CEO of EtherFi, also pointed out that it could shrink the decentralized finance (DeFi) ecosystem reliant on staking and weaken network decentralization.
In terms of technical trends, the 50-day Simple Moving Average (SMA) of $1,852 was presented as a short-term inflection point. For the uptrend to continue, the price must close above this level for three consecutive days. After that, it needs to surpass the 100-day line at $1,925 and the 200-day line at $2,155 to confirm a long-term bullish trend. The Relative Strength Index (RSI) was 52, indicating a neutral level, and both buy and sell volumes were weak, causing the price to remain between $1,800 and $1,900.
On August 4, the Ethereum spot ETF saw a net inflow of $53 million. This was the largest single-day inflow since July 22. Geopolitical tensions eased after U.S. President Donald Trump announced progress in peace talks between the U.S. and Iran, and institutional investors' buying interest in Ethereum also re-entered the market.
[Article Key Summary]
-Ethereum Improvement Proposal (EIP)-8361 includes a plan to eliminate validator rewards once the staked amount reaches 50% of the total supply.
-Executives from Aave and EtherFi criticized the proposal, stating it could harm asset attractiveness, the decentralized finance ecosystem, and network decentralization.
-Ethereum maintained the $1,852 support line, and the Ethereum spot ETF saw a net inflow of $53 million.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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