Ethereum (ETH) price is up by 0.88% today, August 5, to trade at $1,876 at the time of writing. These slight gains come as several Ethereum developers submit an EIP proposal seeking to abolish validator rewards if the total amount of staked ETH exceeds 50% of the coin’s supply. The proposal has now attracted backlash from some community members who are questioning the priorities of the team behind the proposal.
Ethereum EIP-8361 Proposal Attracts Community Backlash
An earlier report by CoinGape revealed that several Ethereum developers tabled a proposal that will gradually reduce the amount of rewards that validators receive.
The proposal says that once 50% of the entire Ethereum supply is staked, validators will no longer receive rewards, with Jerome de Tychey, one of the developers who submitted the proposal, saying that this will remove congestion from the staking entry queue.
However, the founder of Aave, Stani Kulechov, has bashed the proposal, saying that it is “hurtful for Ethereum” and it could make ETH less attractive to institutional buyers who prefer to hold ETH over other assets because of staking rewards.
“This just makes ETH less viable as an asset and restricts its potential. I hope this proposal doesn’t move fwd, otherwise we see lot of people moving their interest in other networks,” Kulechov said.
The CEO of EtherFi, Mike Silagadze, also opined that the reasoning behind this proposal does not make any sense because it could kill the DeFi ecosystem on Ethereum that relies on staking and reduce decentralization on the blockchain.
Ethereum Price Prediction as Bulls Defend 50-day SMA Support
The price of Ethereum is trading above the 50-day SMA of $1,852. This move suggests that the short term outlook on ETH is bullish.
But ETH has yet to close above resistance at this 50-day SMA. It needs to close above this 50-day SMA for three straight days to suggest that the uptrend will continue.
If Ethereum defends this support at $1,852, it will need to move above the 100-day SMA of $1,925 and the 200-day SMA of $2,155 to confirm that the long-term Ethereum price prediction is bullish.
The RSI reading of 52 suggests that the momentum is neutral, with neither bears nor bulls having the upper hand. The short volume histogram bars also suggest that both buy-side and sell-side volumes are weak, and this is forcing ETH to trade in a narrow range between $1,800 and $1,900.
ETH ETF Inflows Resume on Easing Geopolitical Tensions
Data from SoSoValue shows that Ethereum ETFs had $53 million in inflows on August 4. This was the highest inflows posted by this ETF since July 22.
The rising inflows come as President Trump reveals that the US and Iran are making very good progress in their talks to negotiate an end to the war.
The easing tensions have also boosted gains across the broader crypto market, with Bitcoin price holding $64,000 while the total crypto market cap is up by 0.50% to $2.2 trillion.
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