Have you ever hiked for so long that you needed a break? The current lull in ETH prices appears to be nothing more than that. Investors simply needed a breather before continuing the upward trek toward our $400.00 Ethereum price forecast.
It’s not as if ETH prices were rocked by disastrous Ethereum news. On the forums and in the trade publications, the leading story is still the Byzantium upgrade that took place yesterday.
For anyone unfamiliar with Byzantium, it’s simply a package of improvements to the core Ethereum technology. By implementing these changes, developers are trying to ensure that ETH can scale more successfully than Bitcoin.
They also added some privacy features that would make Ethereum competitive with security-focused blockchains like Zcash. Developers hope that adding these features will draw a whole new subset of investors into ETH.
Even if they are right, upgrades like Byzantium can go wrong. There are all sorts of wheels in motion during the process, plus the number of precedents is limited. So it’s no surprise that there was tension leading up to the hard fork.
But regardless of that tension, the rollout went swimmingly. Investors that had already sent the currency up 28.2% during the month before appeared relieved more than anything else, which may explain some of the sell-off.
Investors cooled off on ETH after a week of solid gains, leading to a 5.19% drop in the Ethereum to USD exchange rate. The currency landed at around $322.74 when this article went to press, while the Ethereum to Bitcoin rate fell 2.76% to 0.05790520 BTC.
Daily Ethereum Chart:
We see nothing in this price movement that would make us reconsider our 2018 Ethereum price prediction of $1,000. In fact, we expect prices to rebound with moderate to heavy force during the week, driving prices past the important $400.00 threshold.