ETH Holds $1.9K as a Draft EIP Proposes Zeroing Issuance at 50% Staking Level

Points of Focus

• ETH trades at $1,911.25, now above nine of fourteen tracked moving averages.
• A draft EIP would cut net ETH issuance to zero at a 50% staking ratio.
• A close above the 100-day EMA at $1,924.24 would extend the reclaim further.

Ethereum (ETH) trades at $1,911.25, up 0.21% on the day, per TradingView data at the time of writing.

The daily candle opened at $1,907.23, reached a high of $1,916.62, dipped to a low of $1,893.22, and closed at $1,911.64, extending a technical reclaim that has built steadily across our last several updates.

Nine of fourteen moving averages turn bullish

Of the fourteen moving averages (MA) TradingView tracks for ETH, price now sits above nine: the 10-day exponential moving average (EMA) ($1,888.02), the 10-day simple moving average (SMA) ($1,887.77), the 20-day EMA ($1,875.56), the 20-day SMA ($1,891.42), the 30-day EMA ($1,860.52), the 30-day SMA ($1,866.22), the 50-day EMA ($1,854.31), the 50-day SMA ($1,790.36), and the Hull MA ($1,892.82). 

Price remains below the 100-day EMA ($1,924.24), the 100-day SMA ($1,913.32), the 200-day EMA ($2,152.04), and the 200-day SMA ($2,067.10). 

The relative strength index (RSI) reads 56.26, and the average directional index (ADX) reads 18.58, both suggesting momentum without an extreme reading yet. 

The Awesome Oscillator and Momentum give upward signals. In contrast, the moving average convergence divergence (MACD) at 20.62 gives a downward signal despite the positive value. This split suggests the reclaim has room to continue without yet being overextended.

A draft proposal to cap ETH issuance

Six researchers, including Ethereum Foundation’s Justin Drake, pintail, Jérôme de Tychey, dapplion, pa7x1, and Ladislaus von Daniels, filed a draft Core EIP titled ‘Tapered Issuance Burn’ on August 4, 2026, opened as pull request #12081 and provisionally numbered EIP-8361. 

The proposal would burn a rising share of validator rewards as Ethereum’s staking ratio climbs, reaching a full burn, zero net issuance, at a fixed saturation balance of roughly 60.25 million ETH, about half of the current supply, phased in over 18 months.

🚨 New EIP: Tapered Issuance Burn
We just submitted an EIP to ethereum/EIPs: a minimal, market-driven fix to Ethereum's issuance policy removing the incentive for stake growth beyond 50% of ETH supply.
EIP-8361 by @pintail_xyz, @jdetychey, @dapplion, @pa7x1, @ladislaus0x &… pic.twitter.com/g1uzWPycQ4

— Jerome de Tychey 🦇🔊 (@jdetychey) August 4, 2026

De Tychey’s announcement thread said the staking ratio passed one-third of supply in April 2026, and a worst-case projection puts staked ETH above 70 million by January 2028 without intervention. 

Under the proposal, issuance would peak at around 0.5% of supply annually near a 20% staking ratio and decline from there, a shift from the current curve, where the incentive to keep staking never fully switches off.

Zach Pandl, Grayscale’s Head of Research, framed the proposal as a negative supply shock that is “positive for $ETH price” if implemented.

Important news on Ethereum and $ETH

TLDR: Network update will result in lower issuance/lower inflation (see graphic); negative supply shock => positive for $ETH price

More background in our research blog: https://t.co/AdUOrXVHQN https://t.co/C7v4bS6aHz pic.twitter.com/K4Hfv77Wid

— Zach Pandl (@LowBeta) August 4, 2026

The proposal has drawn immediate pushback on the process. Mike Silagadze criticized the short comment window for a change with, in his words, “far reaching implications for all of DeFi.”

This is so disappointing on every level.

EIP released with 48 hours notice for comments. Realistically 4 months before it goes live. For a major network economics change with far reaching implications for all of DeFi.

Every builder on Ethereum opposes this. Why is this a focus?… https://t.co/qQbCui8aju

— Mike Silagadze🛡 (@MikeSilagadze) August 4, 2026

What comes next for ETH price

This is a draft pull request, not an accepted EIP. It carries no assigned number, no fork inclusion, and no timeline, and the GitHub thread shows active revisions and unresolved CI errors as of this week. Any price narrative built on ‘ETH goes deflationary’ is premature at this stage. 

The technical picture is more immediate: a daily close above the 100-day EMA at $1,924.24 would extend the reclaim into territory ETH hasn’t traded since the recent stack was bearish, while losing the 50-day SMA at $1,790.36 would undo the multi-week improvement entirely. Whether the issuance debate becomes a supply story worth pricing in depends on what happens at the next All Core Devs call, not this week’s chart.