Latest Ethereum News

Metropolis is Ethereum’s hard fork and while the community is split on what they really think of Serenity and proof of stake, the part towards that state-and away from proof of work—has been determined. Towards this path, the consensus is that a manual intervention must be reached.

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This will involve the activation of Constantinople whose main highlight is the difficulty bomb postponement and reduction of miner rewards from three to two. The event is known in the inner circles of Ethereum as “thirding” ushers in the ice-age where miners would have to contend with low rewards at the face of increasing production costs and scarce blocks. Note that in the bid to slash rewards, the network will have to adjust its difficulty delaying block time.

Reports indicate that the network is already experiencing what observers have termed as “mini-ice age”. From Etherscan, the number of ETH in circulation has reduced from 20k to roughly 15k. The reduction in total supply has also seen an increase in block-time from 15 seconds to 18 seconds.

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Whether this is in readiness for Feb 27 events isn’t yet clear but what we do know is that any postponement of Constantinople could lead to disgruntlement, subsequent loss of confidence and an inevitable drop forcing prices below $50 or worse.

In the charts, ETH is free falling. The third most valuable coin is down 2.4 percent at the time of writing and looks likely to re-test $100 in coming days. Definitely, this will be deflating for the community and it isn’t something we don’t want to see. All the same, our previous ETH/USD trade plan is no longer valid but we retain a bullish outlook for ETH in the short-term.

Part of this stems from the fact that $100 is a psychological round number which coincidentally flash with the 78.6 percent Fibonacci retracement level based off Dec 2018 high low. Now, we are banking on ETH prices to find support at this level and bounce off to new highs probably above $120 confirming the Morning Star reversal pattern of mid-Dec 2018.

However, if that isn’t the case and ETH melts below $100, then odds are asset prices will likely retest $100 in a trend resumption phase bringing to life losses of mid-November as bears resurface, stepping up gas for new lows below $70.

On the reverse side, bulls will have a chance especially if ETH find support today and a bull bar prints. Still, we shall adopt a neutral stand only recommending buys once there are significant, wide-range, high volume close above $135—or Jan 14 highs.

All Charts Courtesy of Trading View–BitFinex

Disclaimer: Opinions are those of the author. Do your Research.

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