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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.