Constantinople….ahhh not so much. As you may have heard on Tuesday of this week, it was announced that the Constantinople Fork would be delayed due to a security vulnerability. We had observed over the course of the bounce from the lows made in mid-December, until last week, that crypto prices were led by the ETH market. We had come to the conclusion that this charge led by ETH was due to the anticipation of this fork, making the Ethereum blockchain more scalable. As we saw at the start of this week on Sunday night, ETH was the coin that dragged the whole asset class lower. Putting the pieces of the puzzle together, one can deduce that the information of this fork delay was known prior to the headlines that surfaced on Tuesday. With these types of market events, nothing is ever set in stone.

This is a prime example of potential uncertainty in markets, and if you were listening to us, then you would remember what we had said in our 1/4/19 BitOoda Morning Report: This forking event could be a major catalyst for volatility in the ETH market. In these types of structural events there is always uncertainty that could cause tumultuous price action. This can create potential opportunities for profit through a speculative trade via options. Additionally, there is an increased need for RISK MANAGEMENT for those who hold ETH in their corporate treasuries.

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The BitOoda team here will be awaiting the announcement for the next date of the Constantinople fork to get executed, deliberate on how the market will perceive the news, and attempt to come up with some more successful trading strategies to capture these market movements. What we can take from this last move for sure is that there is strong resistance at $160 in ETH. If/when the Constantinople fork gets back on track, we likely see that level get tested to the upside. If the fork is remarkable successful, then this level could possibly be taken out and a break-out will occur. This price action would be very BULLISH for the ETH and hopefully the whole asset class in general. If the fork is a success, however, and this level of resistance holds, then the pain-train will continue. Only time will tell…

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