- The market is waiting for the major ETH network update.
- ETH/USD si vulnerable to new bouts of volatility.
A significant update on Ethereum network known as Constantinople will take place on February 27. It is supposed to implement some critical changes that will result in more energy efficient and faster mining, as well as a reduced reward for miners.
Sometimes Constantinople is referred to as a hardfork; however, Ethereum developers and the creator of Ethereum Vitalik Buterin prefer to call it an update.
"IMO the Ethereum community should consider adopting @zcashco's terminology of calling things like Constantinople "network upgrades" and reserve "fork" for splits that leave 2+ viable chains. Too many people are asking me lately where they can dump their non-Constantinople coins…” he said in January.
The update was initially scheduled on October 2018, but the team had to delay the implementation at least twice (in October and in January 2019) due to revealed vulnerabilities in the code. Recently another bug surfaced, but the problem seems to be insignificant.
Another delay is likely to increase the downward pressure on ETH, while the successful updated might push the price towards $200.
The chances are that the reaction to the update will be short-lived. According to Leonid Matveev from Waves, at this stage, cryptocurrency prices are influenced by general market sentiments rather than by fundamental factors specific for separate projects.
Apart from that, experts believe that a network update is a natural process, which means it is less relevant for the price-setting process. However, the speculative nature of the cryptocurrency market and unknown outcomes of the event make investors nervous and increase price volatility.
ETH/USD is changing hands at $148.00, gaining over 3% in recent 24 hours. The first resistance comes at $150.00. Once it is cleared, the recent high of $151 will come into focus.
BEST BROKERS TO TRADE CRYPTO
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.