Within seven days, the Ethereum price has increased from $117 to $159, by over 35 percent against the U.S. dollar, establishing it as one of the best performing crypto assets during the past two months.
In the previous week, Ethereum recorded an additional three percent increase in value on a day. Ethereum, is the second most priceless cryptocurrency in the global market and is experiencing a strong upward movement.
Will Constantinople Fork Fuel Ethereum?
Analysts have credited the positive price progress of Ethereum to its upcoming Constantinople hard fork. The fork is set to decline the block reward of Ethereum from 3 to 2. This shall reduce the potential circulating supply of Ethereum in the long-term. Major cryptocurrency exchanges have declared support for the hard fork which is expected to occur between January 14 to 18.
“We will support the Ethereum (ETH) Constantinople hard fork and will take a snapshot of all the OKEx accounts at the block height 7,080,000 (which is estimated to occur between Jan 14 – 18),”
the OKEx team said on January 4.
With no litigious hard fork proposals on the scope and the awesome majority of the community supporting Constantinople, the protocol change is likely to be concluded with negligible network disorder and a short period of trading deferral on cryptocurrency trading platforms. According to a cryptocurrency trader with an online alias “The Crypto Dog,” Ethereum is currently trying a major resistance level above the $160 mark.
In reflection of the performance of the asset during the past two weeks and the momentum gained due to forthcoming Constantinople hard fork, Ethereum is expected to test significant resistance levels with strength. But, the trader said that despite the hopeful price movement of the asset, due to its 80 percent increase in the past three weeks, an entry in a high point could pose a risk to investors.
The trader said:
ETH facing serious resistance on the ratio pair here. It would be incredibly bullish if Ethereum could hold above 0.04 vs BTC. I am not looking for longs at this level. Hard fork shenanigans could certainly push this much, much higher, and ETH could possibly break up on this push, but to me an entry here is hard to justify. Just to be clear – I’m not bearish on ETH right now, the ETH / USD chart isn’t exactly showing ‘weakness.’
Crypto market continues to be volatile
In late December, the cryptocurrency market established signs of a potential recovery as Bitcoin inched closer to the $4,000 level. Thus, traders look forward to the Constantinople hard fork, the Ethereum price could increase beyond the $160 mark. Likewise, the rest of the cryptocurrency market has failed to record high daily volumes nor a evident increase in trading activity.