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Latest Ethereum News
There is a storm brewing within the Ethereum community. Constantinople might have been a cause of discontent especially for miners who will see their earning per block reduced from 3ETHs to 2ETHs right in a middle of a steep bear run.
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Bottoms are not yet visible and even at $100 a pop; it will be tough even for GPU miners to turn a profit. All the same, the end goal as far as Ethereum as a platform is concerned is to shift from Proof of Work âwhich has scaling limitations, to a Proof of Stake network that may still look out small fish allowing centralization, padding ground for a possible whale invasion.
Also Read: Proof Of Work Vs Proof Of Stake Review â What Is POW & POS Mining?
Before then, we miners will have to deal with a mini-ice age thanks to drying rigs as well as possible loss of investment thanks to Ethash upgrade to ProgPow. The latter is an improvement of Ethash and its implementation will see a phase-out, as the network reduces ASIC dependability in the process better distributing the network.
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Although the aim of ProgPow wonât be to make the network totally ASIC resistance, there will be some improvements increasing the efficiency of GPU miners through hardware changes and fine-tuning of chipsets while not gifting any advantage to any of the two largest GPU manufacturers in Nvidia or AMD.
ETH/USD Price Analysis
Back to price action and ETH sellers have their feet at the gas pedal. As far as ETH/USD is concerned, $100 is an important psychological level. Any meltdown that will see ETH prices trend below this mark could trigger panic, a rapid sell-off that may see ETH trend once again at the undesirable $70 mark. However, from the way candlesticks are arranged. That is unlikely.
All we need are a momentum build-up that drives ETH prices from current rates to first above $120 confirming the three-bar bullish reversal pattern of late last week from Jan 28-30 and later $135. Itâs imperative that there are solid gains above $135 as it not only marks the lower limit of our minor resistance zone but the highs of the double bar bull reversal pattern of Jan 13-14.
In a typical correction, ETH prices did hit stops set at Jan 14 lows which coincidentally meshed with the Fibonacci 61.8 percent markâa critical level. At current prices, ETH is trending in between the 61.8 percent and 78.6 percent mark. Although we are net bullish, correction rules have it that the best bulls can muster assuming there is a bounce off from this level is a retest of Dec 2018 highs at $170.
$170 as we can see is previous support and a breakout level. Bull momentum driving prices above this mark will cancel out the âretest phaseâ of a larger bear breakout pattern and welcome buyers aiming at $250 and later $300. We suggest patience until prices edge above $135 triggering the first wave of buyers aiming at $170.
All Charts Courtesy of Trading ViewâBitFinex
Disclaimer: Opinions are those of the author. Do your Research.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.