As predicted here by Armando Pantoja, Ethereum (ETH) has started its climb jettisoning Ripple (XRP) from the #2 spot. From early November to mid-December, Ethereum experienced a steep decline in value as its price fell from $220 to $83, but Ether has started off 2019 with another surge. ETH was already the best performing coin in all of December and now it has carried that momentum forward. If it overcomes the current level, the high target is $170. It is the meeting point of the Simple Moving Average 100 one-day and the Pivot Point one-month Resistance 1.

One reason for the bounce has to do with the upcoming Constantinople Fork, which would reduce miners rewards from 3 to 2 (while also making the network faster). The reduction of the block rewards of ETH restricts the amount of ETH miners can generate, which in the long-term will lead to a gradual decline in the potential circulating supply of ETH. As the supply of ETH goes down and the demand goes up or remains the same, the ETH price is expected to increase.

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The new hardfork would make Ethereum faster, and less expensive. According to developers the hardfork would “usher in a new wave of distributed ledger technologies”.  The block in which that hardfork will take place is 7,080,000.

Over the last quarter, many have criticized ETH’s development and see ICO dumping as hinderance to the long-term rally. However, Joe Lubin, the co-founder of Ethereum, claims that the Ethereum protocol developing is going strong and he made sure to suggest just recently that this will trigger “the continued maturation of the token economy, which will see many exciting consumer utility tokens and tokenized security launched in the new year.”

 

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