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- Ethereum has decreased by almost 10% in the last 24 hours of trading.
- Trading will become volatile during the tough race run around January 16th.
- Forward support: $ 124.91, $ 120, $ 115.15, $ 101.27, $ 93.00, $ 84.00
- Forward Resistance: $ 134.67, $ 138.29, $ 146.74, $ 155.12, $ 171.94, $ 180.67, $ 190.83.
Latest news on Ethereum
The Ethereum market has suffered a severe blow in the last 24 hours, a result of Bitcoin breaks under the $ 4,000 handle and landing in the $ 3,700 region. During the fall in prices, Ethereum has lost its second position in Ripple, once again, to return to third place in the ranking of market capitalisations.
This market crash comes days before Fork of Constantinople, planned for the 7.080.000 block, estimated around 16 January.
The hard fork will implement 5 Ethereum Improvement Protocols (EIP) that will help Ethereum migrate from an energy-intensive PoW algorithm to a more environmentally friendly PoS algorithm. To learn more about each of the EIPs to be implemented with the hard fork, take a look This article.
One of the EIPs involved in the rigid fork is EIP 1234 which proposes to reduce the remuneration of the block from 3 ETH per block to 2 ETH per block. The block premium is an incentive for miners to protect the network when they receive this award each time a block is found inside the Ethereum network.
However, an adjustment to the allocation of the block can reduce profits for miners who in turn could make them abandon the network in the search for a higher ROI in their data mining. A reduction from 3 ETH to 2 ETH is a 33% reduction that has led many to double this as the "third".
This is not the first time that the reward of the block has been reduced. During the hard Byzantium fork, the reward of the block was reduced from 5 ETH to 3 ETH. The reduction of the block premium is important as it helps to reduce the rate of inflation that the Ethereum network will suffer.
To date, on average, there are about 20,300 ETHs added to the circulating supply every day. After the rigid gallows of Constantinople, this will be reduced to 13,400 ETH added daily to the reserve.
We continue to look at the price action for the short-term ETH / USD and highlight any potential support and resistance areas in the future.
ETH Price analysis
Ethereum saw a sharp fall in prices of 9.37% in the last 24 hours of trading, bringing the current trading price to $ 131.40 at the time of writing. The cryptocurrency recorded a further decrease of 15.22% in the last 7 trading days, but is still increasing by 46% compared to the previous month.
Ethereum is ranked 3rd and currently holds a market capitalization value of $ 13.55 billion, a small sum of $ 200 million compared to the second Ripple.
The cryptocurrency has seen a 34% drop in price over the last 90 trading days as the 41-month project now trades at a value of 90% lower than the all-time high price.
Taking a look at the chart 4 hours above, we can see that Ethereum had started the year on a good note, reaching a maximum of about $ 167 during the first week of January 2019. However, the market failed to penetrate above this level and decreased significantly during the past business day.
Price action has now fallen to a level just above our short-term profile. 5 Fibonacci retracement level (drawn in green) for $ 124.91. The price action seems like it could attempt a higher move from this position now.
Trend: downwards under $ 124 support
If the market continues to fall even lower and break under the $ 124 handle, we can consider the condition to be bearish.
At this moment, the trend is neutral. Although the price has dropped significantly in the last 24 hours, it is still necessary to create a lower minimum to confirm a bearish trend.
Where is the ETH support below the market?
If sellers continue with their momentum and reduce price action, we can expect immediate support to the negative side to be localized in the short term. 5 Fibonacci retracement level (drawn in green) priced at $ 124 , 91.
If bears continue to push prices even further down, more support to the downside can be localized in the short term .618 and .786 Fibonacci Retrospective levels (plotted in green), priced at $ 115 , 15 and $ 101.27.
If the sale continues and the ETH / USD breaks under the $ 100 handle, expect further support below the short-term level .886 FIbonacci's redesign (drawn in green) for $ 93.00. This is closely followed by the previous 1.414 Fibonacci Extension level (drawn in blue) for $ 84.03.
Where will ETH / USD meet resistance to the high?
If the bulls can reorganize and start pushing the higher prices for ETH / USD, we can expect the immediate resistance above to be localized in the short term .382 and .366 Fibronacci Retrospective levels (tracks in green), priced at $ 134.67 and $ 146.74 respectively.
A further resistance above the $ 150 handle is predictable at the downtrend levels of .5 and .618 Retrofeed of FIbonacci (marked in red), with a price of $ 155.12 and $ 171 respectively, 94.
If buyers continue to push prices even higher, they will encounter more resistance to the short-term levels of 1,272 and 1,414 Fibonacci Extension (plotted in orange), with a price of $ 180.57 and $ 190.93. This is followed by greater resistance to the September 2017 price at $ 197.73.
Conclusion
We tend to be uncertain about the hard forks in cryptocurrencies, so we can expect the market to become very volatile during the fork race.
We hope that the Constantinople fork will allow Ethereum to reach new heights with higher levels of efficiency and a higher transaction speed per second. The "third" is also an important aspect of the hard fork, as it will help curb the inflation rate within the Ethereum market.
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