Weekly Ethereum Report Dec 14, 2018
Throughout the week, Ethereum (ETH) had been experiencing a strong downtrend as the bulls have failed to keep the price above $90.
At the beginning of this week, Ethereum experienced a short escalation. However, as soon as Bitcoin (BTC) started to fall, the trend could not manage to keep itself together. Even though it seems that a significant drop is unlikely, a fall to $80 was inevitable as the ETH/USD has now reached a new bottom end.
After a fall on Dec 11, the price of Ethereum was back in a bullish trend on Dec 12 and made a comeback as the bears broke the 12-day EMA and the 26-day EMA to the downside on Dec 13.
After falling by 12 percent over last week to $83, by Dec 13, Ethereum had recovered by 2.77 percent and was trading at $91.41. Since the breakdown, Ethereum has been trading within a tight range of $83 - $102.5.
Many believe the current fall shows signs of an excellent buying opportunity. However, the market is still waiting for confirmation of a bottom, so before attempting to buy the coin, investors should make careful considerations. Before trying to buy the currency, traders should wait for the confirmation of a bottom formation.
If the ETH/USD pair plummets below $83, the downtrend would set to continue and is predicted to reach another new low of $66. On the other hand, if the bulls defend the support, Ethereum might consolidate for a period before starting a new uptrend.
The long awaited Constantinople hard fork was announced to be released by Ethereum core developers in an agreement on Friday, Dec 7.
This Constantinople hard fork comprises five separate Ethereum Improvement Proposals (EIPs), which would ease the transition from proof-of-work to proof-of-stake consensus algorithm. Proof-of-stake is more energy-efficient, which would change the Ethereum blockchain by a new hosting upgrade that could prevent backward compatibility. The nodes must either update synchronically with the entire system or continue running as a separate blockchain entity.
According to Ethereum co-founder Vitalik Buterin, proof-of-stake will make the future blockchains more powerful, less costly and improve the user experience. In his words, “Blockchains of the future with proof of stake and sharding will be thousands of times more efficient, and so the efficiency sacrifices of putting things on a chain will become more and more acceptable.”
Before the agreement, a delay till late January 2019 for the Constantinople hard fork was announced due to a consensus issue.