Ethereum (ETH) Reaches Enormous Milestone Everyone Missed

Ethereum’s circulating supply has dipped below a critical threshold initially set forth in EIP-960. This milestone marks a pivotal moment in Ethereum’s history, as the supply of ETH has now gone under the proposed (but rejected) hard cap suggested by Ethereum’s cofounder Vitalik Buterin.

Story behind EIP960

EIP960 was a proposal made by Buterin in 2018, which recommended setting a hard cap of 120,204,432 ETH on Ethereum’s supply to ensure the economic sustainability of the platform under a variety of circumstances. The rationale was to create a predictable monetary policy akin to Bitcoin’s, instilling a sense of scarcity and potentially driving value. However, the Ethereum community did not adopt this proposal, preferring to maintain a flexible supply policy that adjusts with the network’s needs.

The supply of ETH has just gone under the (rejected) hard cap that Vitalik proposed in EIP960 https://t.co/IhNdEUj4Uq pic.twitter.com/ULuWDhZE9l

— Evan Van Ness 🧉 (@evan_van_ness) December 15, 2023

The fact that Ethereum’s supply has now fallen below this cap is an inadvertent nod to Buterin’s vision of scarcity. It is a byproduct of Ethereum’s transition to a proof-of-stake (PoS) consensus mechanism and the implementation of EIP-1559, which introduced a mechanism for burning transaction fees, thereby reducing the overall supply.

Ether’s price endeavors

Turning to the Ethereum price chart, there is a visual representation of Ethereum’s recent market performance. The chart showcases a price trend with the following key observations:

Moving averages: The chart indicates that the price of ETH is currently above several moving averages, suggesting a bullish trend. The 50-day moving average (MA) appears to be above the 100-day and 200-day MAs, which is often interpreted as a positive sign.

Volume: There has been notable trading volume, which can signify strong market interest and support continued price movements.

Resistance and support levels: The price seems to have faced resistance at the higher levels but has found support at the lower end, indicating a potential consolidation phase.

Technical indicators: Indicators like the Relative Strength Index (RSI) may provide insights into whether ETH is currently overbought or oversold. The RSI appears to be in a moderate range, not indicating any immediate pressure toward either buying or selling extremes.

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