Latest Ethereum [ETH] News
In exchange for complete control and privacy, open source, decentralized systems must be developed with great care and conscientiousness. Any lapse in security and a proof of work system may fall to a serious, double spending percent attack. This will not only drain exchanges who support the coin—loss of business during double spending—but supporters will also have to absorb losses like we saw with the last deep chain reorgs in Ethereum Classic.
What’s even worse is that hash power can be rented for a couple of bucks per hours with disastrous consequences. But what we should be watching closely is how open source system strives to strike consensus and effect changes on the source code. We saw what happen in Bitcoin cash and the resultant split lead to massive sell off.
Now, the hard fork has not been cancelled entirely but this is the second time Constantinople implementation is being put off. News began doing rounds yesterday that there has been a technical hitch and a vulnerability stemming from EIP 1283 could create a loophole gifting hacker a window to siphon off user funds.
The EIP, “Net gas metering for SSTORE without dirty maps” according to official Ethereum blog post proposes:
“net gas metering changes for SSTORE opcode, enabling new usages for contract storage, and reducing excessive gas costs where it doesn’t match how most implementation works”.
Aware that the fault could wreak havoc not only on investors but developers and clients, the team of developers including Vitalik Buterin and Afri Schoedon decided to put off the upgrade. The next Dev meeting scheduled for Friday would lay out the exact date for Constantinople.
Ethereum – ETH/USD Price Analysis
In the chart, ETH is down 6.5 percent in the last day at the time of press. Although we are net bullish expecting further gains towards $170 our main resistance level, losses below Jan 14 lows could spell havoc for day traders.
Regardless, we recommend taking longs on every dip with first target at $170. Founding our skew is the fact that there is a double bar bull reversal pattern at the back of strong volumes. Besides, the base of this double bar is at Dec 2018 lows or $120 which doubles up as the 61.8 percent Fibonacci retracement level of Dec 2018 high low.
Although conservative traders can watch from the sidelines, strong gains above $170 nullifying the bear breakout pattern of mid-Nov 2018 would undoubtedly usher in the next wave of bull pressure driving prices towards $250 or higher by Q1 2019.
All Charts Courtesy of TradingView
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.