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The team of Ethereum developers has announced a proposal for a new hard fork which is expected to solve problems currently associated with the Ice Age. In a recently published Ethereum Improvement Proposal (EIP) – EIP 2387 – authored by developer James Hancock, the new hard fork if deployed, would significantly “postpone” the coming of the Ice Age. Muir Glacier is named after a glacier in Glacier Bay National Park and Preserve, located in Alaska.

Hancock explains that the Ethereum network is able to maintain consistency in block production time because of the algorithm that continuously readjusts the difficulty. Specifically, the difficulty is increased for block times less than 10 seconds and reduced for block times more than 20 seconds. The Ice Age, also called the Difficulty Bomb, describes the difficulty in mining algorithm as it increases, which also affects block rewards paid out to the miners on the Ethereum blockchain. Simply put, the Ice Age basically stresses the Ethereum block production rate, affecting the entire network. Hancock noted:

“It artificially adds to the difficulty in such a way that the retargeting mechanism, at some point, can not adapt to the increase, and we see increased block times throughout the network. The ice age increments every 100,000 blocks. It at first is barely noticeable, but once it is visible, there is a drastic effect on block-times in the network.”

Hancock believes that the Difficulty Bomb’s current algorithm is a little too twisted for everyone and especially difficult to explain to the Ethereum community. He believes that changes made to the network’s design should be as straightforward as possible and somewhat predictable as well. This is something he believes that the Muir Glacier hard fork will very easily handle:

“This fork would give us time to address the community to understand their priorities better as far as the intentions of the Ice Age, and give time for proposals for better mechanisms to achieve these goals.”

Hancock says that Muir Glacier will “push back the Ice Age as far as is reasonable” which will allow the team enough time to create an upgrade devoid of these problems. In the time when Ice Age is postponed, Hancock suggests two solutions. Firstly, an update could be created such that the “behaviour is predictable”. Another solution would be to completely eliminate the phenomenon.

The Difficulty Bomb has previously been extended with the first occurrence pushing it by 3 million blocks when the Byzantium hard fork was released in 2017 and the second in February this year, with the Constantinople hard fork.

In other Ethereum news, Ether (ETH) has not been performing favorably enough and has been losing weight. The market’s second-largest asset by market cap has fallen below the $148 support mark and is at $146 at press time. ETH tried to push past $150 recently but failed to hold above it, before the bearish turn that drove it down below $148. While it still fluctuates, the only way for any silver lining, however short term, is for the $148 resistance level to be broken and maintained.

Tolu Ajiboye , 2019-12-04 16:51:53 ,

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While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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