The Ethereum (CRYPTO: ETH) London upgrade is scheduled for Thursday, but will the event significantly impact the price of the second-largest cryptocurrency by market cap. Some think ETH may slip into the red shortly after the improvements are implemented.
Hard Fork And Then A Hard Knock: ETH popped over 9% on Wednesday night ahead of the upcoming London hard fork, which contains a number of Ethereum Improvement Proposals related to transaction fee burning which will affect miners’ profitability and reduce the supply of the coin.
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Not everyone thinks ETH would continue on the upwards trajectory once the upgrade is implemented. Trader and analyst Michaël van de Poppe is predicting a “healthy correction.”
I’m expecting a short-term top to be happening tomorrow on $ETH.
Healthy correction after EIP-1559 before the heaviest bull run of them all happens.
— Michaël van de Poppe (@CryptoMichNL) August 4, 2021
Pseudonymous analyst Murfski shared a chart on Twitter, which indicates that ETH could move past $3,000 but be followed by a spectacular crash down to the $2,000 levels.
We all ready to sell the news?
**Turns Notifications Off** pic.twitter.com/Ve7FgUHzcF
— Murfski (@Murfski_) August 4, 2021
Hard Fork Is Hardly A Thing: Alex Kruger, economist and technical analyst, thinks the upgrade is “overrated and what matters is what happens after,” reported Coindesk.
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Pankaj Balani, CEO of Delta Exchange said the hard fork is a “non event,” as per CoinDesk.
Even though the hard fork does not excite Balani, it has not dampened his bullishness on ETH long-term. He reportedly wrote, “ETH can outperform BTC in the medium- to long-term, but for the next few quarters, ETH should continue to exhibit strong correlation with BTC.”
The Burning Uncertainty: Finally, there is no surety on what the hard fork actually entails in terms of the burning of tokens. While Bitcoin (CRYPTO: BTC) halving involves reducing per-block issuance by half every four years, the Ethereum burning leaves analysts scratching their heads.
“It is difficult, however, to predict exactly how much ether will be burnt over time given that the base fee dynamically adjusts according to network activity and demand for block space,” wrote CoinDesk journalist Christine Kim last month.
As per Kim, EIP 1559, the proposal related to mining fee burning, introduces “economic instability” to the network by making it impossible to control the total ETH supply over time.
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