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The Istanbul hard fork is set to happen on Ethereum’s mainnet live network on December 6th or 7th, depending on the block times, which judging by the testnet earlier in September will be a contentious hard fork – probably resulting in two chains competing for hash power. Will ETH be able to stand the heat and rise higher or will the community cause a downfall to price similar to the Bitcoin Cash split?

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The Istanbul upgrade

Before going any further on how a contentious hardfork will impact the price of ETH, it is important to understand what the hard fork is and its impact on the network. First, the Istanbul hard fork is a planned upgrade on Ethereum protocol implementing EIPs1 to increase transaction speeds on the network, switch to the ProgPoW and solve scaling challenges.

“The Istanbul Hard fork is packed with 28 EIP’s or Ethereum Improvement Proposals.”

While the Ethereum community remains focused on the fork coming up next week, a sour and contentious hard fork may play out a worst case scenario for the value of ETH as miners and developers are yet to agree on the way forward.

A blessing or a curse to ETH/USD?

As is with any contentious fork, token holders usualy rush to stock their bags in preparness for the fork that may see new coins added as the blockchain splits. The trend seems to be no different this time despite the price of ETH remaining well below the October highs at $180 USD. The recent short uptrend seen on the daily charts shows the ETH perma bulls interest as they take up positions awaiting the fork.

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The protocol upgrade however remains a tough issue for both parties in the community as some of the improvements suggested divide the community, which may cause a negative impact on the market following the fork. With the price of ETH currently at $152, having bounced off support at $132 USD, and volumes gradually reducing, bulls may be caught in a bull trap that may push the prices of ETH lower once the fork happens.

 

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Is the upcoming Istanbul hard fork a blessing or curse to Ethereum’s price?

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Is the upcoming Istanbul hard fork a blessing or curse to Ethereum’s price?

Description

The Istanbul hard fork is set to happen on Ethereum’s mainnet live network on December 6th or 7th, depending on the block times, which judging by the testnet earlier in September will be a contentious hard fork – probably resulting in two chains competing for hash power. Will ETH be able to stand the heat and rise higher or will the community cause a downfall to price similar to the Bitcoin Cash split?

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Lujan Odera

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Coingape

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cryptocoach

Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.



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Lujan Odera , 2019-11-29 00:24:11 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


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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