Ethereum completed the Istanbul hard fork. The upgrades address issues with DDoS attacks, interoperability among other blockchains, gas costs and scalability without losing decentralization.

Istanbul hard fork for Ethereum

I’ve been waiting to write this article, thinking that there would be some change in the volume and price trend of Ethereum – especially given that this is one of the most bullish and positive events to happen to Ethereum since crypto kitties (kidding). Instead, Ethereum has maintained a slaved connection to Bitcoin’s (BTC) price action and trend. I had the slightest hope that Ethereum would initiate a new and disconnected trend from Bitcoin, maybe initiating a new altcoin rally and trend that diverged from Bitcoin. Ethereum has failed to generate any divergent price action from Bitcoin since the announcement of the competed Istanbul upgrade. It is entirely possible that this news is not sufficient to generate any interest in Ethereum – Bitcoin still maintains a stranglehold on the entire cryptocurrency market. We could see some activity market-wide if the SEC announces that the Bitwise ETF they are reviewing is reversed – meaning that the ETF has been approved. That decision is on December 18th, 2019.


Ethereum (ETH) Point & Figure Chart

Ethereum (ETH)

Ethereum (ETH)

Oddly enough, Ethereum’s (ETH) Point & Figure chart shows hints of some impending bullish price action. The prior column of Os represents a pole pattern. I’ve broken my rules a little buy making an entry right at the reversal of the new column of Xs – an entry that is usually reserved for spike patterns The actual entry for a pole pattern would be after 50% of the range of the O column has been broken when price moves to $165. Depending on how volatile Ethereum and the aggregate cryptocurrency market could get in the near future, the most conservative entry for Ethereum could be a long way out. The red diagonal line is known as an objective trendline. Objective trendlines are 45-degree trendlines in Point & Figure analysis that can be used to dictate your trade direction. For any other market, this is generally a useful and strong tool – but cryptocurrencies are very different. Cryptocurrencies often make massive columns of Xs or Os when they initiate their new bull or bear runs. So while Ethereum’s most conservative entry is directly above the trendline at $240, it is not outside the realm of possibility that price would move directly to that price level or higher. More than likely, we could see a series of reversals with alternating X and O columns that would lower the conservative long entry each time there is a reversal. The short side of the market is not very far away either. If Ethereum moves down to 135, it will create a double bottom. In Point & Figure, entries long or short are generated when a multiple top or multiple bottoms have been broken. For a short trade, we enter the short on the next O below the multiple bottom. For Ethereum, the short would occur when price breaks the double bottom at 135 with an entry at 130.