The price of Ethereum is gaining momentum as the long-awaited hard fork occurred
The changes that the Berlin hard fork is making are aimed at bringing gas fees in line with computing costs, and the Ethereum price trend is creating significant opportunities for patient traders.
ETH indicators indicate a price increase
The price of Ethereum has freed itself from Bitcoin price fluctuations over the past two days and conditions remain for a continued rally to the next resistance levels, starting at $3,250 and higher.
Yesterday, the hard fork Berlin occurred in the Ethereum blockchain, which the crypto community was waiting for. But not everything went smoothly. The hardfork error forced Coinbase and a number of crypto exchanges to temporarily disable the withdrawal of ETH.
The second-largest cryptocurrency has introduced a hard fork that tries to solve a serious problem for the network – a high gas fee. Over the year, the gas fee that users pay for transactions rose from 10 cents to $40 in February. Currently, the average fee is close to $19 but compared to the minimum fees charged by Cardano and Algorand, the cost of Ethereum is astronomical. What’s more, lesser-known networks like Polygon and Celer Network have grown as they seek to combat high gas fees by aggregating transactions.
The goal of Ethereum is for this hard fork to change the algorithm for calculating gas fees, with the hope of significantly reducing the costs that users ideally want to commit to. Below is a chart of gas tariffs from October 2020.
The Berlin hard fork is one of many improvements on the way to creating ETH 2.0, Ethereum’s transition from Proof-of-Work to Proof-of-Stake.