diff --git a/bchain/coins/eth/ethrpc.go b/bchain/coins/eth/ethrpc.go
index aba0128d..202fa446 100644
--- a/bchain/coins/eth/ethrpc.go
+++ b/bchain/coins/eth/ethrpc.go
@@ -139,25 +139,83 @@ func (b *EthereumRPC) Initialize() error {
 	}
 	glog.Info("rpc: block chain ", b.Network)
 
-	// Subscribe to new blocks
-	sub, err := b.rpc.EthSubscribe(ctx, b.chanNewBlock, "newHeads")
-	if err != nil {
-		return errors.Annotatef(err, "EthSubscribe newHeads")
+	// subscriptions
+	if err = b.subscribe(func() (*rpc.ClientSubscription, error) {
+		// invalidate the previous subscription - it is either the first one or there was an error
+		b.newBlockSubscription = nil
+		ctx, cancel := context.WithTimeout(context.Background(), b.timeout)
+		defer cancel()
+		sub, err := b.rpc.EthSubscribe(ctx, b.chanNewBlock, "newHeads")
+		if err != nil {
+			return nil, errors.Annotatef(err, "EthSubscribe newHeads")
+		}
+		b.newBlockSubscription = sub
+		glog.Info("Subscribed to newHeads")
+		return sub, nil
+	}); err != nil {
+		return err
 	}
-	b.newBlockSubscription = sub
-
-	// Subscribe to new mempool transactions
-	sub, err = b.rpc.EthSubscribe(ctx, b.chanNewTx, "newPendingTransactions")
-	if err != nil {
-		return errors.Annotatef(err, "EthSubscribe newPendingTransactions")
+	if err = b.subscribe(func() (*rpc.ClientSubscription, error) {
+		// invalidate the previous subscription - it is either the first one or there was an error
+		b.newTxSubscription = nil
+		ctx, cancel := context.WithTimeout(context.Background(), b.timeout)
+		defer cancel()
+		sub, err := b.rpc.EthSubscribe(ctx, b.chanNewTx, "newPendingTransactions")
+		if err != nil {
+			return nil, errors.Annotatef(err, "EthSubscribe newPendingTransactions")
+		}
+		b.newTxSubscription = sub
+		glog.Info("Subscribed to newPendingTransactions")
+		return sub, nil
+	}); err != nil {
+		return err
 	}
-	b.newTxSubscription = sub
 
+	// create mempool
 	b.Mempool = bchain.NewNonUTXOMempool(b)
 
 	return nil
 }
 
+// subscribeNewBlocks subscribes to new blocks notification
+func (b *EthereumRPC) subscribe(f func() (*rpc.ClientSubscription, error)) error {
+	s, err := f()
+	if err != nil {
+		return err
+	}
+	go func() {
+	Loop:
+		for {
+			// wait for error in subscription
+			e := <-s.Err()
+			// nil error means sub.Unsubscribe called, exit goroutine
+			if e == nil {
+				return
+			}
+			glog.Error("Subscription error ", e)
+			timer := time.NewTimer(time.Second)
+			// try in 1 second interval to resubscribe
+			for {
+				select {
+				case e = <-s.Err():
+					if e == nil {
+						return
+					}
+				case <-timer.C:
+					ns, err := f()
+					if err == nil {
+						// subscription successful, restart wait for next error
+						s = ns
+						continue Loop
+					}
+					timer.Reset(time.Second)
+				}
+			}
+		}
+	}()
+	return nil
+}
+
 // Shutdown cleans up rpc interface to ethereum
 func (b *EthereumRPC) Shutdown() error {
 	if b.newBlockSubscription != nil {