Ethereum Giving the Sell Signal after Constantinople gets Postponed over Security Vulnerability

By Anjali Tyagi
Published January 16, 2019 Updated January 16, 2019
Best Buy In

Exchanges

Sportsbook

Wallet

ethereum

Ethereum Giving the Sell Signal after Constantinople gets Postponed over Security Vulnerability

By Anjali Tyagi
Published January 16, 2019 Updated January 16, 2019

Key Highlights:

  • Ethereum Constantinople hard fork is delayed over a security vulnerability
  • For now, hard fork won’t happen this happen while node runners have to update a new version of Geth or Parity before blockchain 7,08,000
  • ETH is down over 5% while technical Indicator flashes sell signal

No Constantinople This Week

Today was the day when Constantinople hard fork of Ethereum has to be implemented. However, a few hours before the scheduled time, a vulnerability has been found by the smart contract audit firm ChainSecurity that delayed the hard fork.

The official announcement reads,

“Out of an abundance of caution, key stakeholders around the Ethereum community have determined that the best course of action will be to delay the planned Constantinople fork that would have occurred at block 7,080,000 on January 16, 2019.”

The reentrancy vulnerability found here basically takes over the control flow and make changes to the data. It allows an attacker to steal cryptos from a smart contract by requesting the fund from it repeatedly while feeling false data about actual ETH balance.

This means anyone that runs a node viz. exchanges, wallet service providers, miners, and node operators among others are required to update a new version of Geth or Parity before blockchain 7,08,000 that will occur on “January 16, 8:00 pm PT / January 16, 11:00 pm ET / January 17, 4:00 am GMT.” However, you do not need to do anything if you are a person who simply interacts with Ethereum.

Constantinople hard fork is now delayed for at least this work and any further steps will be decided “on Friday in the all-core-devs call.”

As we reported yesterday, Weiss Ratings called this hard fork a classic case of “buy the rumor, sell the news,” while Ethereum core developer Lane Rettig said,

“I really can’t imagine a less contentious hard fork, to be honest. Of all the hard forks in the history of Ethereum, it’s probably the least eventful one.”

All of this has certainly affected the price of Ethereum as the third largest cryptocurrency is suffering close to 6 percent losses in the past 24-hours. At the time of writing, ETH has been trading at $121 with a daily trading volume of $2.8 billion.

Earlier this week, Bloomberg reported,

“A tool used by technical analysts called the GTI VERA Convergence Divergence Indicator that detects trend reversals is flashing a sell signal for Ether, with the longest buying trend since October ending for the third-biggest digital currency.”

The implementation of Constantinople has been expected to bring a positive movement in Ethereum prices, however, with the hard fork delayed, it’s to be seen how it will perform now.

advertisement

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Anjali Tyagi
440 Articles
Having a background in writing, I worked on a wide array of industry topics and have recently entered the world of Blockchain and Cryptocurrency.

Loading Next Story