Last week, Ethereum, the second most important cryptocurrency in the global market, recorded a strong upward movement, recording a further increase of 3% over the day.
Within seven days, the price of Ethereum has risen from $ 117 to $ 159, more than 35% from the US dollar, making it one of the most performing cryptographic assets in the last two months.
Can the foraged effect of Constantinople continue to stock up on etereum?
Analysts have attributed the positive price movement of Ethereum to its impending gallows of Constantinople. The fork is set to reduce the Ethereum block premium from 3 to 2, reducing the potential long-term supply of Ethereum.
The main cryptocurrency exchanges have announced support for the fixed fork that should occur between 14 and 18 January.
"We will support the fork of Ethereum (ETH) Constantinople and make a snapshot of all the OKEx accounts at the height of the 7,080,000 block (which is estimated to occur between January 14 and 18)", the OKEx team said on January 4th.
In the absence of controversial proposals on the horizon and the vast majority of the community in support of Constantinople, it is probable that the protocol change will be completed with a minimum interruption of the network and a short period of suspension of trading on the trading platforms of criptovalute.
According to a cryptocurrency trader with an online alias "The Crypto Dog", Ethereum is currently testing a higher resistance level above $ 160.
In view of the performance of the asset over the last two weeks and the impulse fueled by the impending Crooked fork of Constantinople, Ethereum should vigorously test its resistance levels.
But, according to the trader, despite the optimistic price movement of the asset, because of its 80 percent gain over the last three weeks, entry into a high point could pose a risk to investors.
The dealer He said:
ETH facing a serious resistance on the pair of relationships here. It would be incredibly bullish if Ethereum could hold over 0.04 vs. BTC. I'm not looking for longs at this level. The shenanigans of the rigid fork could certainly push much, much higher, and ETH could break with this thrust, but for me a voice here is hard to justify. Just to be clear – at the moment they are not bearish on ETH, the ETH / USD chart does not show exactly "weakness".
Crypto Market still volatile
At the end of December, the cryptocurrency market showed signs of potential recovery as Bitcoin rose closer to the $ 4000 level.
However, since January 3, digital assets have seen a decline of about $ 3 billion from their combined valuation and the asset class does not show the indicators of a rapid upward trend in the short term.
While traders anticipate Constantinople's forks, the price of Ethereum could rise above $ 160, but the rest of the cryptocurrency market has not been able to record high daily volumes nor a significant increase in commercial activity after a week stagnant from Christmas to New Year.
Shutterstock foreground image. Price charts from TradingView.