Zilliqa’s bridge to Ethereum will wait for the successful launch of ETH’s London hard fork before going live
This is because the London hard fork changes Ethereum’s fee structure
Once implemented, the team at Zilliqa will observe the London hard fork before upgrading the Zilliqa mainnet to support the bridge
ZIL/USDT has escaped from the jaws of a descending triangle but still remains in bearish territory below the 50-day, 100-day and 200-day moving averages
The highly anticipated bridge between the Zilliqa network and Ethereum will go live after the successful launch of ETH’s London hard fork. This is according to the President at Zilliqa, Amrit Kummer who announced this fact through the following Tweet.
PSA: The $ZIL – $ETH bridge unfortunately cannot go live before the Ethereum London hardfork currently scheduled to be around Aug 4, 2021.
— Amrit Kummer (@maqstik) July 25, 2021
The London Hard Fork Changes Ethereum’s Fee Structure
Mr. Kummer went on to explain that the delay till after the London hard fork, was due to the fact that the upgrade changes the fee structure on the Ethereum network. Consequently, the team at Zilliqa will wait till the London upgrade is implemented then observe the Ethereum network, before upgrading the Zilliqa mainnet to support the bridge.
He went on to Tweet the following timeline and steps before the Zilliqa-Ethereum bridge can go live.
Next steps to $ETH – $ZIL bridge:
1⃣ Ethereum London hardfork (around Aug 4, 2021)
2⃣ Observe London hardfork
3⃣ Upgrade Zilliqa mainnet to support bridge
4⃣ Bridge 🚀
— Amrit Kummer (@maqstik) July 25, 2021
Zilliqa Breaks Above a Descending Triangle but Remains in Bearish Territory
With respect to price action, Zilliqa is trading at $0.06734 after a brief two days below a bearish descending triangle that had formed since mid-May. However, Zilliqa remains in bearish territory as ZIL/USDT is still trading below the 50-day, 100-day and 200-day moving averages as highlighted in the following chart.
Also from the chart above, it can be observed that ZIL’s trade volume has been in the green for the last five days. In addition, the daily MACD confirms the renewed buying interest with a bullish cross below the baseline. The daily MFI and RSI are in neutral territory at values of 43 and 45, thus hinting at a possible continuation of ZIL’s current trajectory to higher levels.
Consequently, the 50-day moving average becomes a potential resistance zone at the $0.80 price area. If a pullback occurs during the weekly close, Zilliqa could find support at $0.059 which happens to be the base of the earlier identified descending triangle.
