Ethereum (ETH) has been on a bullish run for over a month now, gaining 3% in its value on the day. The second largest cryptocurrency by market cap has recently regained its second position overtaking Ripple.
In last week itself, Ethereum’s prices have gone up from $117 to $159, a massive 35% rise. The whole market has been trying hard to bring in the bulls, but the result has been dismal as many cryptocurrencies have failed to rise above their resistance point. So, what is the force behind such a phenomenal rise?
The Scheduled Constantinople Fork of Ethereum network
Ethereum network is scheduled for a hard-fork on January 16th which would cut down the Block reward from 3 to 2 ETH tokens, which would eventually reduce the potential supply of the Ethereum in the long run.
Many analysts believe the current bullish run of the token can be attributed to the announced Fork. since there is no melodrama around the fork as in the case of Hard-Fork of Bitcoin Cash network, and major exchanges around the world have already announced their support for the Constantinople Fork, creating a bullish trend in the market.
The whole community is all in for creating the fork, and there are no resistance or further hard-forks lined up, gaining the confidence of the market. This would also mean that there would be no major disruption on the network, apart from a short period when the fork commences.
At the moment Ethereum is facing strong resistance at $160, and many traders believe its phenomenal rise is not a great sign for investors. ETH has already gained 80% in the last three weeks, thus making it highly volatile and a big risk for traders.
One of the traders said,
ETH facing serious resistance on the ratio pair here. It would be incredibly bullish if Ethereum could hold above 0.04 vs BTC. I am not looking for longs at this level. Hard fork shenanigans could certainly push this much, much higher, and ETH could possibly break up on this push, but to me, an entry here is hard to justify. Just to be clear – I’m not bearish on ETH right now, the ETH / USD chart isn’t exactly showing ‘weakness.’
The Constantinople Fork of the Ethereum network is set to ease on the burden on increasing block size and cut the Block Reward from 3 to 2 ETH. The ethereum community is quite bullish and optimistic about the fork, hoping to improve the network.
If everything goes as planned, the network would be functional just minutes after the commencement of the fork. Given the size of the network, the fork might get either late by a day or even earlier, but the community would be informed, whatever is the case.