Unlike any other previous times, the short term rally that occurred on the last weekend was led by Ethereum as it surged 10 percent. The 3rd largest cryptocurrency made its way from $120 to $149 in this last week.
Looks like the upcoming Constantinople hard fork on February 28th is fueling the Ethereum price as it is currently changing hands at $147.71 with 24-hours gains of 0.89 percent, ETH is also in the green by 0.71 percent, at press time. According to the data provided by Coinmarketcap, it is currently managing the trading volume of $3.67 billion.
As Alex Kruger, the economist and trader shares,
“Constantinople this time around should *not* be a short term bullish event. But narratives matter and the narrative says bullish, and some big fish loaded up on ETH recently.”
He had previously shared this as well, that the upcoming Ethereum fork is “not fundamentally bullish,” rather is bearish as “by postponing the time bomb, the fork will result in a smaller supply reduction.”
“Need to differentiate between, ETH issuance dropping, which has been happening noticeably since December, and the fork, which will result in *higher* issuance than without it. The fork will stabilize ETH issuance at levels about 1/3 lower than November’s.”
However, this fork has the Ethereum traders bullish as the ETH/USD longs are nearing all-time high (ATH) while the shorts are continuously dropping lower. The current long-short ratio is nearing the high that was before the November crash happened.
“Last time ETH longs/shorts ratio was this high was before the November 60% crash. Constantinople comes Feb/25. Cryptos often raise in anticipation of a fork -long the narrative- reach a local top days before, and crash into the fork. Mind the current crypto pump was ETH driven.”
The current position of ETH is not painting a good picture and given the fact that the last time this extreme level predated the November sell-off, we might see another crash incoming. Well, Ethereum just might fuel the dump that is expected by the market to hit the new lows and bottom out.