Latest Ethereum News
At current block count, it’s roughly 12 hours or so before Constantinople is activated at block height 7,080,000. The activation, as we have mentioned in previous articles, will not only lead to ETH rewards cut and a step towards Serenity but it will herald the general objective of the community: that of creating a competitive and scalable platform suitable for an on-demand dApp and smart contracting platform.
Although there are several proposals on the best way to handle scalability within the network such as Casper, Sharding and even privacy approaches such as ZK-SNARKs, this upgrade is important and one of the necessary foundations. What’s more, defining the developers moonlighting towards this actualization is a certainty. Unlike Ropsten when Constantinople had to be aborted—after a surprising three-day fork back in Oct 2018—the community said the upgrade will be put off if there are hitches of any form.
Tomorrow’s upgrade will see the implementation of five Ethereum Implementation Proposals (EIPs) including Skinny Create2, proposed by Vitalik Buterin, allowing for interaction of on-chain and off chain addresses, EXTCODEHASH opcode by Nick Johnson and Paweł Bylica who are drumming for the inclusion of the keccak256 hash in the smart contract code and Constantinople Difficulty Bomb Delay and Block Reward Adjustment by Afri Schoedon that will see reward slashed from 3ETHs to 2ETHs while postponing difficulty adjustment bomb by another 12 months.
Other EIPs set for activation include Bitwise shifting instructions in EVM and Net gas metering for SSTORE without dirty maps. Altogether, EIP 1234 or the difficulty bomb and reward slash adjustment is crucial and was a cause of contention in this hard fork.
Ethereum (ETH/USD) Price Analysis
Meanwhile, in readiness of these EIP implementations, ETH is up nine percent in the last 24 hours and a top performer in the top 10. We expect ETH prices to expand in the next few days in reaction to Jan 9-13 drawdown that saw prices slide from around $170—an important resistance and buy trigger level—below $150 to spot prices.
Although bulls have a chance, it will only make sense if prices rally above $170, invalidating the bear breakout pattern of mid-November while ushering in a new wave of bulls aiming at $250 and later $400 in line with our previous trade plan.
From a technical approach, it appears as if yesterday’s reversal coincided with the 50 percent Fibonacci retracement level which doubles up from Dec 28 lows at $120. Because of this, it is likely that prices will rally above $170 and for this reason, aggressive traders stand a chance of profiting if they buy at spot prices with stops at $120—or Jan 14 lows—with first targets at $170.
Our trade plan will be as follows:
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.