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It was a good month for ethereum. The cryptocurrency has risen from around $ 83 at the beginning of December to $ 150 now at the beginning of January. This is an increase of 80 percent.
Even Ethereum does not seem to stop his rally. Only in the last 24 hours, the cryptocurrency has increased by more than twelve percent, which has also led to the resumption of the second cryptocurrency position in the world after bitcoin.
But what good is this price increase?
Two possible explanations
According to the CCN encryption site, there are two probable explanations for the recent ethereum price rally.
The first explanation is that ethereum was oversold in November and at the beginning of December. At that time, the price of ethereum dropped from $ 220 to $ 83 in a short period of time.
Since the sales pressure has decreased, the cryptocurrency has been able to recover and therefore also increase the price.
Imminent fork
The second explanation concerns the incoming fork (when a cryptocurrency divides or is updated) called Constantinople and should occur around January 16th.
According to the crypto trader Alex Krüger, this fork can have a positive impact on the ethereum price because it means that payment miners must create new blocks on the chain of blocks ethereum (block premiums).
This reduces the number of new ether that is created, which also reduces the risk of inflation.
1 / #EthereumThe Constantinople fork will arrive on the 7080000 block, around January 16, 2019. Constantinople will reduce the block premiums from 3 to 2, decreasing again $ ETH provide accordingly.
In the long run, this is definitely bullish. https://t.co/4bbgAHMz7Z
– Alex Krüger 🇦🇷 (@Crypto_Macro) 24 December 2018
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