Ethereum edged higher on August 5 even as a new proposal to end validator rewards once staked ETH tops half the supply drew criticism from Aave founder Stani Kulechov and EtherFi chief executive Mike Silagadze. Ether held above short-term support while spot ETH ETFs posted their largest daily inflow since July 22.
Ethereum's price nudged higher on August 5 even as a new proposal to cut validator rewards drew criticism from Aave founder Stani Kulechov and EtherFi chief executive Mike Silagadze. Ether rose 0.88% to trade at $1,876, holding above a short-term support level, while the proposal's backers argue it would ease congestion in the staking entry queue.
EIP-8361 Proposal Draws Backlash From Aave, EtherFi
Several Ethereum developers submitted EIP-8361, a proposal that would end validator rewards once staked ETH exceeds 50% of the coin's total supply. Developer Jerome de Tychey, one of the developers behind the proposal, said the change would remove congestion from Ethereum's staking entry queue.
Aave founder Stani Kulechov criticized the proposal as damaging to Ethereum, warning it could make ETH less attractive to institutional buyers who favor staking rewards over holding rival assets. Kulechov said: "This just makes ETH less viable as an asset and restricts its potential." EtherFi chief executive Mike Silagadze also argued the proposal's reasoning does not hold up, saying it could hurt the DeFi ecosystem that relies on staking and reduce decentralization on the network.
Ether Holds Above the 50-Day Average, but Resistance Looms
Ether is trading above its 50-day moving average of $1,852, a level that suggests the short-term outlook is bullish. But ETH still needs to close above that average for three straight days to confirm the uptrend, and it would need to clear the 100-day average of $1,925 and the 200-day average of $2,155 to point to a bullish long-term trend.
The relative strength index reads 52, signaling neutral momentum. Thin volume on both sides is keeping ETH confined to a range between $1,800 and $1,900.
ETF Inflows Resume as Geopolitical Tensions Ease
Spot ETH ETFs pulled in $53 million on August 4, their largest daily inflow since July 22, according to data from SoSoValue.
The rebound in demand comes as President Trump said the United States and Iran are making progress toward ending their war, easing geopolitical tensions that have lifted sentiment across crypto markets. Bitcoin held above $64,000 while the total crypto market capitalization added 0.50% to $2.2 trillion amid the improved mood.
Source: CoinGape
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