Ethereum Price Analysis: ETH/USD Bulls Aim to Retest 2019 Highs Ahead of Planned Hard Forks
- Ethereum bulls are back; the price has gained over 20% within the past nine sessions.
- There is much anticipation across the community ahead of the scheduled hard forks on the Ethereum network.
ETH/USD: Recent Price Behavior
Ethereum’s bulls are demonstrating quality signs of a recovery, with the ETH/USD up over 8% at the time of writing on Monday. ETH/USD is running towards its fourth consecutive session in the green, having gained over 20% within that period. The extension to the upside came on the back of a breakout from a bullish pennant pattern formation. It had taken its shape from 9th February up until its breach was made on 17th February, playing out to the textbook.
It will not be too much of a surprise if the upcoming hard forks influence this current move. Previously, ETH/USD haD stormed higher on anticipation of them taking place; however, given their respective delays, sharp reversals were observed after these initial moves higher. The most recent storm north by the bulls has seen the price print its highest level in over five weeks. At present, there aren’t any signs of a slowdown in momentum, with not too much in the way of resistance for now.
Rally into Scheduled Hard Forks
The Ethereum network looks all set to accommodate its Constantinople this time around after being notorious for delays. Its upgrade was initially planned for release in 2018, which was then pushed back to January 2019, and was again delayed to late February 2019. The decision regarding the latest delay came after the smart contract auditing firm ChainSecurity discovered security vulnerabilities in one of the five Ethereum Improvement Proposals (EIPs).
This hard fork will include two separate forks that will occur on the same block. Constantinople remains the first fork, coinciding the other fork known as Petersburg. Both are set for activation on block #7,280,000. The above-detailed EIPs will see an improved approach to accommodating scaling solutions for the network. Also included in the upgrade are improvement on how contracts are processed, a more cost-efficient approach to processing information, and a 12-month delay to Ethereum’s so-called difficulty bomb, along with a mining reward reduction from 3 ETH to 2 ETH per block.
Technical Review – ETH/USD
Given the most recent breach of the containing pennant pattern, another wave of buying pressure is very much in play. Looking to the upside, the next area of interest for the bulls will likely be up at $165-$170. The price last traded up at these heights in January; they represent the peak for 2019 so far. Sellers forced the bulls to give up these levels at the time. Should the bulls manage to maintain the current momentum, eyes will then be on the move back into the $200 territory. In terms of support, this would likely come into play down at $125 on top of the broken down pennant.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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