Ethereum Stuck Below $2,000 Amid Scarcity Narrative

Ethereum's price action has been stuck below $2,000, but recent developments could drive a breakout. The altcoin has previously traded above this level in May, but repeated attempts to clear it have been met with sellers pushing back.

The US spot ETF Ethereum flows saw net inflows of $53.75 million on August 4, which could help usher ETH back above $2,000 if investor appetite continues.

A proposed mechanism called tapered issuance burn, introduced in EIP-8361, would automatically burn a growing share of rewards as the share of staked ETH increases. However, this is still an open draft and not yet implemented.