As Ethereum’s Constantinople Hardfork Nears Analysts Expect Post-Fork ETH Price Plunge
Ethereum has had a pretty good month regaining its position as the second biggest cryptocurrency by market cap. One of the reasons for the surge in value has been the anticipation of the upcoming Constantinople hard fork.
However many analysts in the crypto ecosystem think that this trend will not continue after the hardfork as the selling pressure keeps on increasing.
Last time $ETH longs/shorts ratio was this high was before the November 60% crash. Constantinople comes Feb/25. Cryptos often raise in anticipation of a fork -long the narrative- reach a local top days before, and crash into the fork. Mind the current crypto pump was ETH driven. https://t.co/jc4hLoWifb
— Alex Krüger (@krugermacro) February 22, 2019
Another crypto trader UB thinks that Ethereum will drop to the levels of around $122 in the near-term after the hardfork. He adds:
“$ETH – ETH stalling at the Area of Interest makes an argument for distribution. A chart that looks like this (little to no pullback on a run up) isn’t something I would long. I’m looking at a pullback as far as ~122. Yes I know Constantinople etc etc. I trade the charts.”
The original plan was also scheduled on a different date – February 27th. Now, with the progress that the company has made, the hard forks will take place two days sooner on block #7,280,000 around 11:49:25 UTC.
Nevertheless, the launch date was already delayed twice, with the first time being in October. The stay followed the Ropsten Testnet Constantinople hard fork. During this fork, there were obstacles concerning a dispute between Parity and Geth. There was also a bug found in the Parity implementation. In an attempt to work on the bug, the team decided to delay until January.
The January hard fork was suspended as a result of the Ethereum Improvement Protocols, which was recognized as EIP – 1283. The issues were only announced within the few hours leading up to the hardfork was scheduled. The official report stated that performing the hardfork at that time would eventually lead to vulnerability at prospect for a reentrancy attack.
Although there are bearish sentiments around Ethereum, it does seem to have buying support around the current prices. As a Twitter user noted:
Wonder where the buy wall is… pic.twitter.com/NUusWMZZPJ
— Hsaka (@HsakaTrades) February 22, 2019
More about the price trends will become clear as the date for the hardfork gets closer.