Ethereum is back in the number two spot for cryptocurrencies. But the cryptocurrency hit a roadblock last month when a planned upgrade was postponed until later this month. We’re going to talk about why Ethereum’s road map is taking so long.
Constantinople is the last step before Ethereum becomes a Proof Of Stake currency. In theory that means Ethereum can become faster and more efficient–but first, it has to overcome a lot of technical challenges. The latest upgrade introduces five proposals to improve Ethereum.
Most of these proposals are designed to make it faster and cheaper. For example, there’s one upgrade that will allow transactions to be stored outside of the blockchain, saving space and transaction fees. There’s also a proposal to reduce mining rewards, and another to postpone an increase in mining difficulty.
Constantinople was supposed to go into effect several weeks ago, but a critical vulnerability was discovered at the last minute. The upgrade is now planned for February 28. This is great news for miners since block rewards will get smaller after the network is upgraded.
That delay also exposed some of Ethereum’s weaknesses. Critics say that Ethereum is too centralized since many of the key decisions are made by the Ethereum foundation.
Ethereum’s Price Action Analysis
Looking at ETH/USD’s daily chart, do you see the beautiful little bottoms above the $82 support? Any chart analyst knows that this is a classic bullish reversal chart pattern. But we like to take things to the next level.
The pair has yet to break above the daily Ichimoku cloud and until that happens, we can’t be sure of a medium-term bullish reversal, especially since the future cloud remains bearish. The cross-over might happen after Constantinople. So if you’re a die-hard Ethereum fan, you might find current prices a good buying opportunity. However, any further troubles in the Ether-land, and especially if it’s unable to break above the Ichimoku cloud, could actually drag the price down to as low as $48.
Disclaimer: The author of this article owns Ether and other crpytocurrencies.
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