CryptalDash

Ethereum's Constantinople Testnet Failed

BITFINEX:ETHBTC   Ethereum / Bitcoin
The attention of the Ethereum community has been massively focused on the upcoming update called “Constantinople”. This is a huge step for the Ethereum blockchain, as the Constantinople was meant to bring a variety of upgrades, which were expected and needed. On 13 October 2018, Constantinople was put on the testnet, but failed to work.

While it is unclear if it was the lack of miners on the ETH network for the Constantinople to fail, but certainly it is of great interest to miners. Why? Because this upgrade would lower the reward for the miners, and instead of getting 3 ETH, they will get only 2 ETH as a block reward. However, at the same time, Constantinople should reduce the inflation rate, which makes it more attractive for investors.

While the update failed, investors didn’t seem to have any reaction as price remained within a very narrow range; between btc 0.031 support and 0.032 resistance. Both of these are the Fibonacci retracement level, and its clear how the 38.2% level is currently acting as the resistance. Although, looking at he 61.8% Fibs support, it was broken on the 11 October, and later, on the 15 October it was rejected.

There is an impression that market is going through the uncertainty, as ETH/BTC price struggling to establish a clear direction during the past 3 days. Yes, it spiked up on the 15 October, reaching the btc 0.0344 high. However, the 88.6% Fibs support, 200 Moving Average and the long-term downtrend were rejected, and the 4h closing price below the btc 0.032 resistance.

As the downside risk is very high, price might decline further, reaching either btc 0.0292, 0.0281, 0.0271 support. Nevertheless, for this to happen, 4h close must be below the btc 0.03 psychological support. On the upside, close above the btc 0.032 might be considered as a buy signal for short-term investors, and ETH/BTC should re-test the btc 0.034 resistance.

Support:
1. 0.0310
2. 0.0300
3. 0.0292
4. 0.0281
5. 0.0271

Resistance:
1. 0.0320
2. 0.0344
3. 0.0376
Oct 22
Comment: Price continues to range
Oct 26
Comment: Support is holding
Oct 31
Comment:
Oct 31
Comment:
Nov 20
Trade closed: target reached

Comments

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