The Ethereum price gains over the weekend has reversed again, as ETHUSD is trading below $ 129. How will the new Ethereum hard fork in January 2020 affect ETH price? Is Ethereum price set for breakout or further decline in the new year?
24 December, 2019 | AtoZ Markets – Ethereum (ETH), the second-largest digital asset with a current market value of $ 14 billion, reversed from most of its weekend gains to trade at $ 128.55 at the time of writing. ETHUSD has lost more than 3% in the past 24 hours and has remained unchanged since the start of the day.
Another Ethereum 2020 Hard Fork is the Muir Glacier Upgrade
On January 2, the Ethereum team will initiate another hard fork, which is considered to be a difficulty bomb for ETH. The update called Muir Glacier will be launched on the 9,200,000 block, and as a result, the bomb will not explode for an additional 4 million blocks.
The difficulty bomb is a kind of motivational tool for participants in the Ethereum ecosystem to make the transition to the proof of stake (PoS) algorithm. As the platform has grown in terms of active users and decentralized applications, it was deemed necessary to make this adjustment to prevent the network from slowing down during what is called the ice age of Ethereum.
It is a routine upgrade, but many have wondered why it was not included in Istanbul. The Muir Glacier will delay the difficulty bomb by an additional 4 million blocks, or approximately 600 days, through EIP 2384. Unlike Constantinople at the beginning of the year, there will be no adjustments plan for the block reward, and it will remain at 2 ETH for the moment. The transition to proof of stake later next year will render these PoW adjustments obsolete. However, things are unlikely to turn around for ETH before Bitcoin starts its halving rally next year.
Is Ethereum (ETH) Price Setting for Breakout or Further Decline?
The crypto market has taken another hit today and ETH fell from $135.50 to $125.50, marking a decrease of 6.5%. After a decent upward move from the low of $ 116, the price of Ethereum traded near the resistance zone of $ 135.50 against the US dollar. However, ETH failed to continue its progression above $ 135.50 and the 55 simple moving average.
As a result, the price began to drop further from $ 135.50. More importantly, it appears to be a major downtrend line forming with resistance close to $134.50. This move reflected the cryptocurrency’s failure to break down resistance and sent Ethereum back to its lowest level in nine months. The new resistance level at $ 135.50 has been too high for ETH to overcome, and the crypto asset is looking to finish the year lower than it started.
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