Constantinople Upgrade is Bullish for Ethereum (ETH) Says Prominent Crypto Trading Analyst
The cryptocurrency market has damaged several virtual currencies, including Ethereum (ETH). Since the beginning of the year and until a few days ago, Ethereum had lost more than 92% of its value. However, during the last few days, the virtual currency recovered from $81 up to $150.
The future looks very bright for Ethereum. According to the cryptocurrency analyst Alex Krüger, Constantinople’s upgrade could be very bullish for the virtual currency. This upgrade would reduce block rewards from 3 to 2 ETH, thus decreasing ETH supply creation.
On Twitter he wrote about it:
On the long run, this is decidedly bullish. https://t.co/4bbgAHMz7Z
— Alex Krüger (@krugermacro) December 24, 2018
He went on saying that the current bull run that Ethereum experienced against Bitcoin could be related to Constantinople. However, when Constantinople was decided ETH spiked for a short period of time, but its price kept falling for a few days more.
However, Krüger explained that this could also be related to the fact that Joseph Lubin, the co-founder of Ethereum, called for the crypto bottom this year.
He went on saying that there were other network upgrades on Ethereum, but they did have different effects over its price. This makes it difficult to predict what can happen in the future during similar events. Additionally, he said that after Constantinople, if Ethereum is being traded around $155, only pro miners with electricity above $0.075 would be operating at a loss.
Smaller miners in the space could clearly be operating at a loss or profit, this would not change the equation for enthusiasts that do not care about profits.
One of the main issues around Ethereum in the last few days was related to Lubin talking about the end of the bear market experienced by virtual currencies. Nevertheless, he received several critics due to some reports saying that ConsenSys was going to fire between 50% to 60% of its employees.
At the time of writing this article, Ethereum is being traded around $142. It also has a market capitalization of $14.79 billion. Since its bottom, Ethereum was able to register a price increase of 75%. However, the virtual currency remains almost 90% down from its all-time high registered at the beginning of the year.