• Ethereum core developers led by Vitalik Buterin are prepared to transition to proof-of-stake, while miners announce a hard fork. 
  • Proof-of-work supporters led by Chandler Guo and Justin Sun are pushing to keep Ethereum’s chain alive, as it is now. 
  • Ethereum price outlook remains bullish. as aAnalysts predict ETH rally to the $1,700 level. 

Ethereum price continues its uptrend despite a battle about consensus protocols between two groups in the ETH ecosystem. Chandler Guo is leading a group of miners in their fight to keep a parallel Ethereum proof-of-work chain alive, post the Merge. Despite differences between the two groups, and the resulting uncertainty, analysts remain bullish on Ethereum price. 

Also read: Ethereum staking explodes ahead of the Merge, 13.3 million ETH on the deposit contract

Why Ethereum is headed towards a fork, again?

Ethereum witnessed a fork in 2016 when the altcoin suffered a crisis. In an attack on the Ethereum blockchain, a hacker stole 5% of total Ethereum tokens in circulation. When developers worked towards a solution, they decided to proceed with a hard fork. Instead of accepting the loss of hacked funds and moving on with the original blockchain, Ethereum as we know it was forked and Ethereum Classic was created. 

Ethereum proof-of-work to proof-of-stake transition

Ethereum proof-of-work to proof-of-stake transition

Ethereum Classic is the original Ethereum chain while Ethereum, as we know it today, is the forked version of the altcoin’s blockchain. Since balances were adjusted to erase the DAO exploit, a vast majority of partners, developers and institutions in the Ethereum ecosystem supported the new chain. Ethereum Classic suffered several exploits and challenges in the development of its infrastructure. 

Ethereum has arrived at a crossroads, yet again. Two sections within the Ethereum community are at loggerheads regarding the changing consensus mechanism. Since Proof-of-stake does not require miners, a group led by Chandler Guo is planning a hard fork of Ethereum. The group of miners demanded a parallel Ethereum chain, instead of the transition to the Merge. 

Justin Sun of the Poloniex exchange has welcomed the group of proof-of-work supporters. Vitalik Buterin and Ethereum core developers do not consider the hard fork a threat to the Merge or the Proof-of-stake chain. 

The Ethereum Proof-of-work community’s manifesto is in the Twitter thread below:

Ethereum proof-of-work boon or bane?

Kevin Zhou, co-founder of Galois Capital told Coindesk, 

There’s really two classes of incentives. The first is pure grift. Someone could just make a fork – they know it's probably not going to work, and they don’t plan to support it. They’re just going to get some free coins … and then just dump them.

Ethereum’s proof-of-work fork would duplicate the original chain’s ledger and prominent analysts in crypto circles believe that is a bad idea as most projects in crypto dump on retail. Proponents argue that there are several ghost chains like Ethereum Classic that were created for investors to shed their holdings on retail traders. 

Ethereum price eyes $1,700 bullish target

Analysts are bullish on Ethereum and predict a rally in the altcoin. As investors prepare to yield profits in Ethereum, Phoenix Ashes, a crypto analyst notes that it is breakout time in Ethereum. There is liquidity both above and below the current Ethereum price level of $1,655, and the altcoin is ready to hit the $1,728 target. 

Ethereum-USDT price chart

Ethereum-USDT price chart

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Ripple price turns as US Dollar surprises with sudden strength

Ripple price turns as US Dollar surprises with sudden strength

Ripple (XRP) price is on the back foot again after what should have been the moment every trader was waiting for this year: the Christmas rally. Instead, the rally chokes as its worst enemy is back at it – the US Dollar’s strength.

More Ripple News

Dogecoin celebrates ninth birthday, gears up to fight crypto bombshell Twitter coin

Dogecoin celebrates ninth birthday, gears up to fight crypto bombshell Twitter coin

Dogecoin is celebrating its ninth anniversary. The first Dogecoin block was mined nine years ago, since then the meme coin has witnessed a spike in its use cases.

More Dogecoin News

Pitstop before bullish explosive move

Pitstop before bullish explosive move

Bitcoin price is at a place where the probability of reversal is high. This downswing has knocked Ethereum, Ripple and other altcoins down as well. Although this is a temporary setback, it will allow sidelined buyers to step up. 

More Bitcoin News

Cardano price points to $0.27 eventually but an uptrend move could happen first

Cardano price points to $0.27 eventually but an uptrend move could happen first

A brief technical and on-chain analysis on Cardano price. Here, FXStreet's analysts evaluate where ADA could be heading next.

More Cardano News

Bitcoin Weekly Forecast: Assessing likelihood of 80% rally for BTC before 2023

Bitcoin Weekly Forecast: Assessing likelihood of 80% rally for BTC before 2023

A massive bullish move is coming. In the last two articles, we have taken a look at why this is possible from a technical and on-chain perspective. In this weekly forecast, we will take a look at Bitcoin’s monthly performance for the last decade and determine if this bullish outlook is possible. 

Read full analysis

BTC

ETH

XRP