Ethereum price analysis: ETH/USD recovers to $470 as Ethereum developers propose to reduce block reward

Ethereum recovers from recent lows.
Block reward may be decreased together with difficulty increase.

Tanya Abrosimova Independent Analyst

Ethereum has recovered from the low of $43954, reached early on Monday, but it is still well below recent high. The second largest coin with a market value registered at $4B have an average daily trading volume settled at $1.3B. It is mostly unchanged on a daily basis while growing volatility may trigger more extended recovery amid positive sentiments of a broader crypto market.

Ethereum has fallen victim airdrops of Chinese crypto exchange FCoin and spam attacks, allegedly triggered by EOS bots. They resulted in a transaction fee growth amid lower trading volumes. Apparently, Ethereum network is still experiencing negative consequences of those events.

Meanwhile, Ethereum developers propose to reduce block reward from 3 ETH to 2 ETH simultaneously with the difficulty increase.

“In order to maintain stability of the system, a block reward reduction that offsets the ice age delay would leave the system in the same general state as before. Reducing the reward also decreases the likelihood of a miner driven chain split as Ethereum approaches proof-of-stake,” they said.

Ethereum's technical picture

Looking technically, ETH/USD is supported by Fibo retracement level and short-term upside trend line currently at $460. Once this area is cleared, the sell-off may be extended towards $440 (Friday's low ) and $421 (the lowest level of July 12). On the upside, the resistance is created by $473 (Sunday's high). The psychological $500, followed by $516 (recent high) are likely to cap potential recovery for the time being

ETH/USD, 1-hour chart

Author

Tanya Abrosimova

Independent Analyst

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