Author: Dmitry Gurkovsky, senior analyst at RoboForex

The Ethereum (Ethereum) several up in the end of January. The major auction Thursday, January 31, going for cryptocurrency around 107,32 USD.

Quotes Ethereum continue to develop a downward trend, moving in the stable channel. On the 4 hour timeframe cryptocurrencies we see that after the approach to the psychologically important level of 76.0 per cent ($100,00) quotes rebounded to the resistance at the mark of $110,00.

Not yet broken the limits of the channel, to talk about ending the downward trend before. A test and rebound from current resistance will allow the pair to decline to $95,00, and probably to at least $80,86. Thus formed on the MACD convergence may warn of a looming pullback.

Allowing for such a possibility, noting that the start to this will serve as a breakout of the resistance around the level of $110,00. The purpose of the correctional up-trend will be located on the resistance line of the channel long-term decline, particularly at the level of $125,00.

The 1 hour chart the downward trend Ethereum is presented in a more detailed view. Note that an upside corrective movement, supported by the Stochastic indicator, ends as line of the indicator were included in the control overbought, and price has tested the resistance zone at $110,00. “Black cross” on Stochastic can be a signal of the beginning of the next pulse declines.

Among fundamental news it is worth noting the reported reduction in the reward for mining the block in Ethereum ETH 15 000 20 000 with the same ETH. This means, on the one hand that mining cryptocurrency will become further less beneficial. On the other, it is a natural result of the preparation of the company for the hard forks Constantinople.

The very global network refresh should take place on 27 February. A decrease in the premium for mining – this is the “bomb of complexity”, which we talked about earlier. Immediately after the mechanism was activated, the reward for production immediately fell by 25%. After he will hardwork, the reward per block will be reduced further. After the introduction of Constantinople, the “new bomb”, will be launched, as expected, only after a year.

Why the complication of the production is called “explosion of complexity”? Largely because it increases the time to search each unit in the network. This in turn will lower emissions and ETH, respectively, will increase the complexity of the network. Sooner or later the system will provide such effect, in which mining ETH will be virtually impossible.

Hardwork network in Ethereum was supposed to be held last year but was delayed due to the identification of a large number of problems.


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