Ethereum analysis for 08/01/2019

Ethereum developers are working at full speed to introduce a system update soon. The update named "Constantinople" will introduce changes important for programmers and miners. As announced by the developers, the change is to be implemented on January 16. Skeptics, however, cool the mood and pay attention to previous updates, the introduction of which lasted for several weeks.

Users looking for sensationalism already mention the division and creation of a new blockchain, as was the case with the creation of Ethereum Classic. It probably will not happen, but many people sense sensations.

The cryptocurrency hard-fork is a process in which the computers (miners) that support the system must download a new update or start a new blockchain that would function independently of the original one. As announced by Ethereum developers, the planned updates will not bring many changes and are rather optimistic in character. However, one of the updates evokes mixed feelings, because it reduces the reward from the block production from 3 to 2 eth, while delaying the difficulty of mining (difficulty bomb) by 12 months. Despite the negative response from some Ethereum users, the developers hope that the changes will be accepted.

Let's now take a look at the Ethereum technical picture at the H4 time frame. The market has bounced from the local support at the level of 108 and test the swing high at the level of 155.06 and even made a new local high at the level of 156.91. Since then the price has broken below the trend line support (dashed black) and is currently trading below the level of 146.04. The next target for bears is seen at the level of 140.00. The weak and negative momentum supports the short-term bearish outlook.

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