Ethereum Price Analysis: ETH/USD Spikes 17% as Constantinople Set to Launch in Jan; $60 Still in Sight

  • Ethereum developers report that Constantinople hard fork is estimated on 16th January 2019.
  • ETH/USD could be driven down further to May 2017 low, around the $60 territory.

Constantinople Set for January Implementation

ETH/USD in the late part of trading on Friday surged some chunky 17%. An update on the highly anticipated Constantinople hard fork launch date has been agreed. This is coming on the back of the Ethereum core developers bi-weekly meeting on Friday 7th December.

As covered here at Hacked, back in October, the delay warning was issued by developers. “Due to a consensus issue with the Constantinople fork, Ropsten is currently not usable. The Ethereum dev community is investigating. Until further notice please utilize one of the other Ethereum testnets.” This was detailed at the time by Infura, an Ethereum infrastructure organization. The developer team were originally planning for implementation in November.

A team lead at Ethereum by Péter Szilágyi confirmed the scheduled update via Twitter account. He tweeted, “Ethereum Constantinople mainnet hard fork scheduled for block #7080000, estimated around the 16th of January, 2019!”.

Technical Review – ETH/USD

ETH/USD 17% spike higher

ETH/USD enjoyed an excessive move to the upside, as detailed above. A spike which initially recovered the heavy double-digit losses of the day on Friday. The intensity of this jump was very much unsustainable and short-lived, given the strength of this current bear market.

Therefore, the sellers have just been too much to contain. ETH/USD attempted to jump back and reclaim the psychological $100 mark. However, given the firm break below this on the 6th November, the recent price collapse has been very detrimental. There is a gaping wound open for further bloodshed.

Firstly, in terms of resistance, due to the large psychological factor behind the $100 mark, it will likely prove to be a tough barrier. Lastly, should the price begin recovery again at some point, this will now be the first challenge for the bulls to break down, for greater upside.

Greater Downside Remains Possible

ETH/USD daily chart

A retest of the wick low produced on 7th December is currently eyed by the bears. This is seen down around $83.00. As a result, ETH/USD is being forced to trade at the lowest levels seen since May 2017. Danger is still at large of further downside.

ETH/USD monthly chart

Furthermore, looking at the monthly chart view, the next major area of support is not seen until the May 2017 low. This would mean a return down to $65 territory. As a result, another potential devastating drop of over 90% remains on the cards.

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.

Featured image courtesy of Shutterstock.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.