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Ethereum Price Analysis: ETH/USD Bullish Above $100, Test of Resolve

Latest Ethereum Price

At spot prices, bears are not only stress testing the dApp ecosystem but putting to test the resolve of investors and all market stake holders. Of course, its a fall from grace to grass, that dip from $1,400 to less than $100 has been damaging for investors, developers and businesses. ConsenSys—with more than 1,000 employees and in present in 30 countries is believed to be burning $100 million supporting staff and projects mostly from Joseph Lubin stash—is feeling the sting.  Days after calling for resilience, the company announced that they will be laying off 13 percent of its staff.

Read: Crypto Startups Going Bankrupt Amidst Market Crash

Aside from that, news has it that even with these low prices, hackers are now targeting unsecured Ethereum wallets and mining rigs. As reported by our team, hackers have been scanning the network for a week now and their main objective is to pick out port 8545—a JSON-RPC interface used by wallets and mining hardware. The interface depends on the user to set up passwords and if left open, then hackers can exploit that opening and siphon funds.

Also Read: Changpeng Zhao Likens Binance Chain To Ethereum, BNB To ETH

On the development front, the decision by developers to agree and fix a date for Constantinople is something very positive and would go a long way in instilling confidence in the ecosystem preventing project migration to rival networks.

ETH/USD Price Analysis

ETH/USD Price Analysis

On a weekly basis, ETH/USD is down 17 percent in the last week and quite stable in the last day and hour. And even as bears dig in, ETH is down in the excess of 85 percent from 2018 peaks and as Fibonacci retracement rules demand, a natural correction is imminent. This is why traders and investors across the board expect prices to bounce back and close above $100 by the end of the week. Once it does, then it is likely that ETH/USD would expand to $130 or higher. If not, falls to $50 or less will be inevitable.

Trend: Bearish, Minor Accumulation

From left to right, the trend is clear. ETH/USD is bearish and oscillating within a tight $17 range with limits at $100 and $83. Unless otherwise there are gains above $100, bears are in control and considering the rate of recent price erosion, we cannot discount the possibility of prices breaking below $83.

Volumes: Increasing, Bullish

As prices range, three bars are a standout: Dec 7, 1900HRs bull bar—321k versus 179k average, Dec 8—2300HRs bull bar—163k versus 134k average and Dec 9—1500HRs bull bar—130k versus 85k average. All these bars confine price action. In real sense, ETH/USD price action is still oscillating within Dec 7 high-low. Therefore, for buyers to be in charge then we must see strong gains above Dec 7 highs at $100 while falls below its lows would trigger a sell off towards $50.

Candlestick Formation: Bear Breakout

Clearly, bears are in charge but at spot prices, prices are in range mode and accumulating. As aforementioned, bears are in control but if bulls gain momentum and thrust prices above $100 then ETH buyers have a chance.

Conclusion

From the above, this is our ETH/USD trade plan:

Buy: $100—Dec 9 Highs

Stops: $85—Dec 8 Lows

Targets: $130, $160

Breaks below $83 invalidates this trade plan.

All charts courtesy of Trading View.

This is not investment Advice. Do your Own Research.

The post Ethereum Price Analysis: ETH/USD Bullish Above $100, Test of Resolve appeared first on Ethereum World News.

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Ethereum (ETH) Developers Cut Block Rewards By 33% To Curb Inflation

From 3 ETH To 2 ETH Every 14 Seconds

As with the growth of any asset, product or service, development is key. And it seems that the team behind the Ethereum project has taken development to heart, recently holding an hour-long meeting to discuss the future of their brainchild.

Friday’s meeting, dubbed “Ethereum Core Devs Meeting Constantinople Session #1,” covered a variety of topics that include ASIC resistance, an updated consensus algorithm (ProgPoW), future hard forks and a so-called “difficulty bomb,” which are all topics that pertain to October 2018’s planned Constantinople hard fork.

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But the curiosity of many investors, traders, analysts, and miners piqued when the 15 meeting attendees started to discuss the rules surrounding this issuance of Ether, which has become a hot topic within cryptocurrency community.

After discussing Ether issuance for a good period of time, the attendees, which were mainly composed of core developers, decided to confirm a 33% block reward reduction, from 3 ETH to 2 ETH as per Ethereum-Improvement-protocol 1234.

While this announcement may seem mundane on the surface, some were over the moon about this decision. Eric Conner, an Ethereum proponent, highlighted the statistics of the current Ethereum Network and when the Constantinople upgrade occurs.

Conner revealed that as it stands, there is a 7.4% annual inflation rate of Ether, which amounts to a hefty 7,378,402 ETH ($2.065 Billion). This is evidently ludicrous, with many pointing out that a 7.4% inflation rate eclipses the declining purchasing power of ‘popular’ fiat currencies. But once EIP-1234 sees full implementation, the Ethereum network’s inflation rate will drop to a respectable 4.7%, or 4,918,935 ETH a year ($1.37 Billion).

It was added that this move will essentially put Ether’s inflation rate nearly on-par with Bitcoin’s, which will both hover around 4% annually by the start of 2019.

Alex Kruger, an Argentina-based cryptoanalyst, questioned why the market “isn’t reacting more bullishly to this.” But as seen by this week’s news cycle, the market has seemingly stopped reacting to news altogether, with bullish and bearish news alike not making any dents on the often irrational price action of crypto assets.

Eduardo Gomez, a Venezuelan cryptocurrency commentator, likened this move to a Bitcoin block reward halving event, adding that prices will first dump “then moon” in the months following the event.

Gomez is alluding to the theory that a smaller block reward will only bolster prices in the long-run, as miners will need to put in more ‘effort’ (funds, electricity etc.) to garner the crypto they are craving for. And as seen by the previous Bitcoin halving events, this seems to be more of a reality than a theory, as the price of the foremost crypto asset surged in the months/year following the move from 25 BTC to 12.5 BTC per block.

In related news, along with reducing block rewards, the Constantinople EIP-1234 move intends to delay Ethereum’s difficulty bomb, which will give developers more time to work on the Casper protocol, which would move the network from a PoW-centric system to a Proof of Stake (PoS) model.

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Ethereum Developers Move to Alter the Blockchain's Economics

A proposal that, if enacted, would change how much new cryptocurrency is released on the world’s second-largest blockchain was finalized Friday, with developers agreeing to include the code for such a change as part of ethereum’s upcoming October upgrade, Constantinople.

Speaking on a video call, a group of 14 developers agreed to support code that would reduce the amount of new cryptocurrency introduced on ethereum to 2 ETH per block, down from 3 ETH today, by implementing an updated version of an ethereum improvement upgrade named EIP 1234.

Notably, investors and miners who attended a meeting on which upgrades should be included in Constantinople last week were not invited to this week’s meeting and did not attend.

But while this week’s meeting featured a more limited number of attendees, those present agreed that the difficulty bomb — a piece of code intended to add time pressure to upgrades, and that has influenced discussion of Constantinople’s code — will be delayed for a 12-month period.

Yet another hard fork, or network-wide software upgrade, will be planned to occur 8 months from the upgrade to Constantinople, developers agreed.

With controversy building on the issuance change – and multiple parties arguing for different outcomes – a reduction to 2 ETH was positioned as the conservative choice.

Depending on the perceived outcome of the change to ethereum’s code, security researcher Martin Swende suggested revisiting the question after the 8-month period.

“I think we also need to be conservative with changes and make changes incrementally, and not dictate changes against the will of the community, but apply conservative measures in doing changes but trying to keep with the intent of the community,” Swende said during the call.

Speaking in the meeting, Casper developer for the Ethereum Foundation Danny Ryan echoed this point, stating that because issuance is likely to drop considerably in an upcoming upgrade that will find ethereum making a dramatic changes in how the network is secured, a decision in the interim should be seen as “incremental compromises until we get to the vision.”

“Everything I view in the issuance discussion is an incremental compromise to encourage the community and move things sanely until we move to proof-of-stake, which will bring issuance down to the range of 0.5 or 1 percent per year, and at that point I think the community will certainly be happy. These are incremental compromises until we get to that goal,” Ryan said.

A decision has yet to be made on an algorithm change that would to restrict the use of ASICs, a type of specialized mining hardware, from the platform.

Speaking in the meeting, several developers argued that research should continue in this direction, while Ryan said there might be potential funding from the Ethereum Foundation.

“There’s a potential for a grant here,” Ryan said.
Several further non-contentious upgrades were also confirmed for the upcoming hard fork.

As detailed by CoinDesk, these include EIP 145, EIP 1014, EIP 1052, and EIP 1283, which work to increase efficiency and scalability.

“Those are all accepted and we are all on board with those being the four Constaninope EIPs,” ethereum developer Piper Merriam concluded.

Mining hardware via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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A Phone Call Could Impact Ethereum's Future – And It's Happening Today

Miners, investors, developers and more.

That’s a summary of the diverse set of ethereum stakeholders that will be in attendance at an upcoming developer call, according to Ethereum Foundation communication officer Hudson Jameson. Set to take place at 14:00 UTC Friday, the live-streamed meeting aims to address some of the platform’s most challenging questions ahead of its system-wide upgrade planned for October.

As part of that upgrade, there are several non-contentious ethereum improvement proposals (EIPs) already ready for testing, but also included are others that have stirred up controversy.

In particular, three concepts – the difficulty bomb, ether issuance and ASIC resistance – are at the heart of the debate, since each could have a lasting impact on how the blockchain operates. For instance, these code proposals could alter the regularity of ethereum upgrades, change the network’s economic policy and prevent specialized hardware from mining on the blockchain.

As such, core developers that usually attend the meetings have called for a larger set of voices, namely ether miners and investors, to be present to discuss a way forward.

“There is a strong community sentiment toward delaying the bomb, to reduce the block reward and to introduce changes to the hashing algorithm, however, it’s unclear how we proceed from here,” communications officer for ethereum software provider Parity Technologies, Afri Schoedon, told CoinDesk.

In the run up to the meeting, debate has been building on social media, with many of the platform’s stakeholders holding incompatible view points. And because the outcome will impact stakeholders in conflicting ways, Jameson has invited a number of people to the call to give their positions on the proposals.

“We have multiple miners, including nearly 50 percent of the ethereum hashing power (46 percent) either attending the call or making statements that will be read during the call,” Jameson said.

He told CoinDesk:

“Our aim was to have a variety of voices collaborate on this issue.”

Investors

Adding urgency to the current discussion is the so-called “difficulty bomb” – a piece of code locked into the platform that makes its blocks steadily less efficient to mine over time.

Because delaying the bomb also impacts issuance, there are a total of six conflicting proposals, each offering slightly varying methods for moving forward.  

Two proposals on the agenda for Friday’s meeting seek to reduce issuance — something some ether holders believe is too high. (Currently, the inflation rate is fixed at 3 ETH per block — down from 5 ETH since last October.)

While there’s a host of ethereum investors who have yet to publicly comment on the matter, several investors have taken to social media to call for a reduction in ethereum issuance, contending that the current inflation rate is an unnecessarily high tax on the holders of the cryptocurrency.

For example, some are pointing to a quote attributed to the creator of ethereum Vitalik Buterin in 2017 that states: “In the foreseeable future, the supply will not go far above 100 million,” a figure which as now been surpassed.

Others are going so far as to blame the inflation rate as the reason for ether’s market value decline, which hit a 2018 low of less than $300 earlier this month.

“Ether issuance is wildly over where it should be,” one user wrote.

Still, because it decreases the quantity of ether that miners are awarded to mine blocks, there’s a risk that too high an issuance reduction with be harmful to miners, forcing them to move their equipment onto another network.

Miners

That said, some are arguing that despite high issuance, miners that rely on general purpose hardware are already suffering.

“There is basically zero profit right now for normal GPU miners,” one user claimed on Github.

As detailed by CoinDesk, while ethereum was previously thought to be a GPU-friendly, ASIC-resistant cryptocurrency, the specialized mining chips have been available for use on the network since March. Leading advocates of GPU mining argue that efforts should be made immediately to remove the hardware from the platform.

In the past few months, the questions of ASIC resistance largely fell quiet, but questions around tweaking the difficulty bomb and underlying issuance model have caused the arguments to reactivate. And that’s because proponents argue that a reduction in issuance could push the last remaining GPU miners off the network, that are already competing against a rising hashrate.

Several stakeholders are pointing to a proposal named EIP 1057 as a method for ASIC resistance, that uses a randomizing, ASIC-resistant proof-of-work algorithm originally designed for monero to remain resilient against ASIC hardware manufacturers.

Speaking to CoinDesk, Peter Pratscher, the founder and CEO of Ethermine, an ether mining pool, said that among the company’s miners, the question of ASIC resistant eclipses all other concerns.

“We have reached out to our miners and from their response, it is clear that the most important point for them is to include a [proof-of-work] change to obsolescence ASICs,” Pratscher said, adding that the attitude around issuance was “somewhat ambivalent.”

Still, it’s a question that has proven to be divisive, with some users taking to Reddit to warn it is “not the answer,” and could impinge on valuable developer time in the run up to proof-of-stake.

Developers

Of all the platforms stakeholders, developers are perhaps the most difficult to pin down – especially as many avoid taking a position in polarized debates, preferring instead to focus on delivering code.

Still, among this group, there’s a general tendency to be less interested in the question of issuance — in part because there’s an attitude that the high valuation of ether reduces its usefulness within the platform.

For many ethereum developers for example, the question of ASIC resistance is also of important ideological importance, because it relates to the underlying decentralization of the network — and therefore its resilience to attack.

Others hold the inverse position, believing that by raising the cost of attacking the network — ASICs are comparatively much more expensive than GPUs — the hardware is good for security.

That said, there is a topic that remains of particular interest to the developers – the difficulty bomb.

“Delaying the bomb is the easiest part, everyone pretty much agrees we should do that,” Schoedon told CoinDesk.

And while it’s true the consensus roughly is that the bomb should be delayed, there’s some disagreement about whether to remove its code entirely or to keep it embedded in the software. Because it was installed to prepare the network for the change to proof-of-stake, some argue that it is now irrelevant given the delay in that change’s timeline for execution.

Still, others believe that it has developed an entirely new function — forcing ethereum to come together and find consensus on complicated problems, just like these.

Speaking to this, because of the difficulty bomb, core developer Nick Johnson told CoinDesk:

“People are welcome to stick with the status quo, but they have to make an affirmative decision to do so, rather than letting inertia do the work for them.”

Phone via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Ethereum Is Testing Code for Its Next Hard Fork

Ethereum developers are already implementing code for Constantinople, the network’s next system-wide upgrade.

The second part of a series of upgrades to make the ethereum network more efficient and less costly in terms of fees, Constantinople will be activated sometime before October’s Devcon4 ethereum conference, according to stakeholders during a core developer meeting Friday.

That said, an exact block number at which the code would go live hasn’t yet been confirmed for the backward-incompatible change.

A loose roadmap for the upgrade has also been suggested. Under that roadmap, the implementation stage continues until August 13, after which there will be two months of testing, including the launch of a Constantinople-specific test network.

The upgrade will include various optimizations aimed at making the platform more efficient – and less costly in terms of fees. Constantinople is the second part of a two-part series of upgrades, following in the footsteps of Byzantium, which was activated last October.

According to the meeting, a total of four ethereum improvement upgrades (EIPs) are currently being implemented by developers. Péter Szilágyi, lead developer of Geth, the most popular ethereum client, said they have already implemented most of the changes.

“The EIPs are mostly done,” Szilágyi said in the meeting.

*Parity Ethereum* has already made good progress on this front as well, according to communications officer Afri Schoedon. (would actually cut this whole sentence)

Some of the upgrades that have reached the implementation stage include EIP 210, which reorganizes how block hashes are stored on ethereum, and EIP 145, which increases the speed of arithmetic in the ethereum virtual machine (EVM). Two other upgrades – EIP 1014 for the addition of ethereum state channels, and EIP 1052, a new op-code that compresses how contracts interact – are also being worked on by developers.

Two other notable changes are still up for discussion, including a possible delay in ethereum’s difficulty bomb and an EIP that could improve how gas pricing works.

At least as far as the mining difficulty question is concerned – a contentious topic that involves a consideration of ethereum’s issuance model and one that has different impacts on various stakeholders – no decision has yet to be made.

“We’re not going to be able to decide this part today,” Hudson Jameson, moderator of the discussion, concluded.

Image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Ethereum Hard Fork Proposed in Response to New ASIC Miners

Ethereum’s pending major update Casper will already be part of a planned Ethereum hard fork titled Constantinople and is likely to occur between 2018 and 2019.  In response to the news of the release of Bitmain’s powerful new Ethereum Miners, the Ethereum community is calling for a much sooner hard fork.

Bitmain’s Impact on Ethereum

On April 3rd, 2018, following extensive rumours, Bitmain released its Ethereum miner named the Antminer E3. The E3 is set to ship to buyers in July.  The application-specific integrated circuit (ASIC) miner is restricted to sales of one per customer, with further restrictions on shipping to China and Taiwan. The E3 is expensive but powerful, coming in at roughly three times more cost-effective in one analysis by CryptoSlate in comparison to other similar hardware.

Though the Ethereum Casper update, moving Ethereum from proof-of-work (POW) to proof-of-stake (POS) would make the E3 obsolete, there is a significant amount of mining time available before the proposed Casper update happens.

The Ethereum community is concerned that large-scale Ethereum mining will reduce its decentralization, leaving too much Ether owned by mining firms and groups.

The concern doesn’t just originate from the E3 hitting the market. According to rumours, Bitmain has been using the E3 to mine Ethereum itself before releasing the new hardware to the public, potentially explaining a rise in Ethereum mining directly before the release of the E3.

Ethereum Community Propose a Hard Fork for ASIC Resistance

Developer Piper Merriam posted an Ethereum improvement proposal (EIP) as soon as rumours of the new Bitmain miner broke to discuss the potential of a hard fork to make Ethereum ASIC resistant. The discussion brought arguments for and against a hard fork for this reason. The Casper update, moving Ethereum to POS would solve the problem entirely, but it may be some time before the update is implemented.

Ethereum founder Vitalik Buterin has yet to comment directly. In a developer chat in February attributed to Buterin discussing the potential of such a development he said:

“I’m not convinced it’s worth expending resources caring too much, except to push faster on Casper.”

Ethereum has been against mining hardware since inception with methods to prevent its use incorporated into the initial Ethereum white paper.

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Hark Fork Byzantium Unfolds Without Any Problems – Ethereum Price Surging?

Ethereum has been officially updated to Byzantium, the cryptocurrency’s 5th hard fork to occur. Creator Vitalik Buterin is seen celebrating the successful transition with the other developers on social media.

Over the last few days, Byzantium software was constantly withdrawn due to critical bugs found in the code. Developers corrected the bugs at the last possible moment, but not without considering to delay the fork to have a more stable launch.

ETH prices remained relatively stable both before and after the fork’s execution, rising around $40 October 13 and maintaining new levels since.

This takes ETH towards the upper end of its price spectrum, which this year saw all-time highs of around $410 and a July low of $146.

Regardless of the frenetic increase of investment in Ethereum this year, Byzantium is a bundle of changes and improvements to the protocol that has been in development since 2015. Know as Metropolis, its roadmap currently extends to an unknown date in 2018, when another hard fork will initiate, called Constantinople.

Metropolis is a large-scale upgrade that is broken in two phases Byzantium and Constantinople. Byzantium occurred at block 4.37mil, however Constantinople does not have a formal release date yet, but it is expected to occur sometime in 2018.