- Ethereum price action is consolidating and moving within narrowing trading conditions.
- ETH/USD has formed a bearish pennant structure subject to a potential breakout south.
ETH/USD: Recent Price Behaviour
Ethereum price is moving within consolidation mode, as the range further narrows subject to an imminent breakout. Trading conditions have been tight since the steep fall that kicked into gear late from 20 – 24 September. The bears came into force after the price ran into a chunky supply area, $220 – 240. It had dropped a whopping 30%, biggest fall since mid-July. ETH/USD has not firmly traded above this zone since July, when the market was in a steep decline.
Since 25 September, after the shock of the heavy fall, trading conditions largely flatlined. During the noted period, ETH/USD daily price action has formed a bearish pennant structure, which is subject to a potential breakout south. There was a short-lived breach between 23 – 25 October, however, this proved to be a technical fakeout. The price is very much back to moving within the structure.
Date Set for Ethereum Network Hard Fork
Péter Szilágyi, a lead developer at the Ethereum (ETH) Foundation, recently confirmed that the expected date for the next hard fork will be 4 December. The upcoming update is Istanbul, which Szilágyi has indicated that it will be commencing at block 9069000.
He further provided Geth mainnet node operators with a link to a maintenance solution to start the hard fork process. Geth is one of the two largest clients used to operate nodes on the Ethereum network, the other being Parity. One of the most anticipated attributes of the Istanbul hard fork is the implementation of a new proof-of-work (PoW) consensus algorithm called “ProgPoW”. It does aim to fight the advantage of ASIC miners.
This type of devices had so far dominated cryptocurrencies being mined based on the proof-of-work algorithm. These have negatively affected miners who mine directly with the GPUs of their computers. Given the fact that these are much less powerful than ASIC miners. Istanbul intends to change this situation.
Given the bearish pennant structure, another move to the downside looks increasingly likely. A short position from the current market price, with targets at; $165, $155, and then $100. Stops to be placed just above the pennant at $202.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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