The amount of Ethereum in circulation has fallen below the crucial level that was first established in EIP-960. This achievement is a turning point in Ethereum’s history since it means that the hard cap that cofounder Vitalik Buterin had proposed and then rejected is no longer in place for the amount of ETH in circulation.
Story behind EIP960
Buterin’s 2018 proposal, known as EIP960, called for imposing a hard cap of 120,204,432 ETH on Ethereum’s supply in order to guarantee the platform’s financial stability in a range of scenarios. The idea was to establish a stable monetary policy that would resemble Bitcoin’s in order to foster a feeling of scarcity and maybe increase value. The Ethereum community, however, chose to keep a flexible supply strategy that adapts to the demands of the network and did not accept this idea.
https://x.com/evan_van_ness/status/1735462244136189953?s=20
Ethereum’s supply has now dropped below this ceiling, which is an unintentional homage to Buterin’s concept of scarcity. It is a consequence of Ethereum switching to a proof-of-stake (PoS) consensus process and putting EIP-1559 into effect, which reduced the total supply by introducing a mechanism for burning transaction fees.
Ether’s price endeavors
Using the Ethereum price chart, one may see a graphic depicting the cryptocurrency’s recent performance in the market. Key findings from the price trend displayed in the chart are as follows:
Moving averages: The price of ETH is presently above a number of moving averages, according to the chart, indicating a positive trend. It is generally considered a good indication when the 50-day moving average (MA) is above the 100-day and 200-day MAs.
Volume: There has been a significant amount of trading activity, which may indicate robust market interest and encourage further price changes.
Levels of resistance and support: It appears that the price encountered resistance at the upper bounds but found support at the lower end, suggesting that a possible consolidation period is underway.
Technical indicators: You can determine whether ETH is now overbought or oversold by looking at indicators like the Relative Strength Index (RSI). There doesn’t seem to be any urgent push on the RSI to purchase or sell extremes; it looks to be in a reasonable range.
