At press time, ether is trading for approximately $596. This is roughly $11 less than where it stood during yesterday’s evening hours. Excitement was quickly spreading through the crypto community as Ethereum breached the $600 mark, but it appears that excitement is not going to last.
The price drop may stem from a critical bug that was recently discovered in the Ethereum blockchain by software developer Parity Tech. A published report discussing the group’s initial findings explains:
Follow CryptoMode on Twitter, Youtube and TikTok for news updates! “A consensus issue on the public test network Ropsten has revealed a consensus vulnerability that can be triggered by a malformed transaction. Examining the issues with our nodes on Ropsten, we have found out that there is a potential consensus-related issue between Parity Ethereum (up to versions 1.10.4-stable and 1.11.1-beta) and all other Ethereum clients.”
The report goes on to say:
“In the worst case, submitting a certain malformed transaction (coming from a 0xfff…fff address) to a mining Parity Ethereum node could have caused that node to produce a malformed block, which would still be treated as valid by other affected Parity Ethereum nodes.”
Parity later published an update with a fix, but it appears ether is still being affected somewhat, despite one source claiming that the currency had recently added three percent to its price and was trading for as high as $610 during the early morning hours.
Per another source, Ethereum is reportedly gearing up for a potential bull run, saying that new resistance is being developed at the $619 level. This is more than $20 higher than where Ethereum stands at press time, which indicates the currency could rise slightly by the end of the week. In addition, Ethereum may find additional resistance at $660 granted it is able to break $619 earlier than anticipated.
Presently, the currency appears to have found solid support where it sits: between $594 and $596. Ether coin has been hovering within this range over the last 48-72 hours, but if this support is lost anytime soon, the asset could fall to $565 or as low as $530, and the bulls are warned to remain on their guard. Currently, the buyers appear to be outweighing the sellers, but they have not been fully defeated, and thus still dominate a large portion of the trading scene.
Another source suggests that Ethereum is readying itself for battle against a competing altcoin known as Zilliqa – an open-source blockchain project that was first introduced in 2017. The currency was undergoing a largely successful crowd-sale at the time, and was attracting investors through its design of a smart-contract based platform that allowed users to “run dApps in a blockchain-enforced virtual environment.”
This would pit Zilliqa directly against Ethereum, which operates via a similar platform, and in an age of would-be “Ethereum killers,” it will be interesting to see if Zilliqa really has what it takes, or if it just knows how to talk its way into the limelight.
The team is currently preparing the currency for a quarter two test-net 2.0 launch with smart contracts alpha, while beta testing will occur in quarter three of 2018.
Charts by TradingView
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