03.09.201807:44 Forex Analysis & Reviews: Ethereum analysis for 03/09/2018

Ethereum's developers, during a regular YouTube meeting, decided to delay the "Difficulty Bomb" by agreeing to incorporate the code of this change into the upcoming Constantinople.

One of the main goals of the Ethereum Foundation is the adoption of a new consensus algorithm - Proof of Stake (PoS). In order to implement it, the developers have developed a solution called "Difficulty Bomb", which makes the production of new blocks more complex and unprofitable. Constantinople was designed to streamline the transition from the Proof of Work (PoW) consensus algorithm to PoS.

Last week, developers proposed three possible scenarios for the impact of Difficulty Bomb on the reduction and maintenance of block awards. According to the developers, EIP-858 would reduce block rewards to 1 ETH per block, EIP-1234 would reduce the block reward to 2 ETH, while EIP-1295 would retain the ETH 3 level, but would affect other factors such as the PoW incentive structure.

According to the post on GitHub, the developers decided to accept the scenario EIP-1234. It was proposed to delay the Difficulty Bomb by about 12 months so that in the winter of 2019 the chain returned to 30-second blocking times and reduced the block prize at hard forks Constantinople.

Let's now take a look at the Ethereum technical picture at the H4 time frame. There is a trend continuation pattern made at this time frame in a form of a Triangle Pattern, which means the downturn might be continued. The nearest technical support is seen at the level of 278.90 and then 268.92, but the key technical support is seen at the level of 246.61. On the other hand, the nearest technical resistance is seen at the level of 301.35.