On the last day of February, the Constantinople upgrade and fork of the Ethereum blockchain finally went live after a couple of delays. The implementation of Constantinople, also known as Ethereum 2.0, has been successful in terms of technology, but traders have been mostly disappointed with the effect that the fork has had on the cryptocurrency markets.
Analyst Predications for Ethereum
Analysts who follow ETH/USD were expecting a major surge in pricing right after the upgrade went live; after all, significant trading volume boosted Ethereum right in the two months before Constantinople was activated, but this has not been the case. ETH/USD pricing was volatile and mostly bearish in the 48 hours following the fork event. Ethereum was trading around $162 during the last week of February, but it dropped to $135 in the first trading session post-Constantinople. On the hourly charts, ETH/USD traded as low as $128 before bouncing back to $142 and eventually retreating to the $135 level.
Recent ETH volatility was expected by many analysts, but they thought it would have been bullish. As of March 2, expectations have been lowered, and the trading range between $128 and $135 could continue for a few more days. Technical analysis has played a strong role with regard to ETH pricing action because many traders who took long positions in late 2018 decided to take profits around the $160 mark.
What the Future Holds for Ethereum
Despite the disappointing market performance, the Ethereum blockchain and digital currency network is still the world’s most valuable distributed ledger system. Bitcoin may still lead in terms of market capitalization, currency exchange value and trading volume, but Ethereum is the most widely used digital currency platform. The future of this blockchain is brighter than Bitcoin’s, but ETH has not managed to establish itself as a circulating token, a challenge that is faced by virtually all cryptocurrencies. When central banks wish to make a digital version of their fiat currency, the blockchain they choose is invariably Ethereum.
With ETH/USD trading below $140, there is a chance that bullish traders will take longer positions over the next few weeks, but there is also a chance that they may enter the market when pricing is closer to $130 just so they can cash in at $140, at which time a pullback is almost guaranteed. If anything, the Constantinople fork has not been as disruptive as the ones that were launched in 2017, and it has not featured infighting between miners and developers, a problem that Bitcoin has experienced more than once.