Latest Ethereum News
The Ethereum community is split. Divided not because of Constantinople and EIP 1234 that will see miner rewards shrink from three to two but because of the real possibility of losing out on their investment. I’m talking about Programmatic Proof of Work—ProgPow—whose implementation shall render Ethereum largely ASIC resistant.
The idea here is to make the Ethereum network ASIC resistant and that involves phasing out Ethash and introducing a new algorithm that will ostensibly close the efficiency gap that specialized ASIC miners used to enjoy. Designed by experience hardware engineers, ProgPow will see the new chipsets utilize “almost all parts of commodity hardware (GPUs).” That not’s all. These GPUs are pre-programmable for common hardware used for ETH mining.
As we can see from this brief description, the idea of ProgPow is not to make Ethereum ASIC resistant. Instead, it is to level out the playing field, eliminate the 1000X efficiency associated with ASICs by simply improving on the Ethash algorithm. Aside from downgrading to Keccak f800—32 bit, in a bid to reduce power and increasing DRAM read to 256 bytes from 128 bytes, ProgPow shall increase mix states, add a random sequence of math in the main loop as well as not favoring any chipset manufacturer in Nvidia or AMD.
ETH/USD Price Analysis
At the time of press, ETH is stable and trading at $108 against the USD meaning the coin is still under immense sell pressure. Like we had emphasized in previous trade plans, we shall adopt a neutral approach as far as ETH/USD trading is concerned aware that losses below psychological $100 could trigger panic selling that will inevitably lead to more losses below Dec 2018 lows in a classic dump.
So far, buyers have stepped in and prices are steady. Even if bears have an upper hand in a top-down approach, in the short-term, bulls are in control. Note that ETH is down 75 percent from Dec 2018 highs and at spot rates, it is trending inside the 61.8 percent and 78.6 percent Fibonacci retracement levels of Dec 2018 high lows.
While we are net bullish, we shall take a neutral stand until after prices confirm gains of Jan 30 in a three-bar bullish reversal pattern clearing $115 and later $120. Ideally, bulls would be controlled if prices rally above $135, confirming the double bar bull reversal pattern of Jan 13-14 and putting in force the motions of late Dec 2018 that would see ETH prices rally towards $170 nullifying the bear breakout pattern of mid-Nov 2018 lighting bulls in the process.
All Charts Courtesy of Trading View–BitFinex
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.