Detailed analysis of price behavior of ETH during previous forks

15 Ağu 2022

Hello dear readers!

ETH 2.0 - hard fork of Ethereum that will improve scalability multiple times by switching from PoW (Proof of Work) to PoS (Proof of Stake)
Scheduled on september 19. Only a month left.


As ETH 2.0 approaches and everyone is buying Ethereum, question is opened - How much will we grow and for how long should we Hodl?

The goal of this post is to provide you with answers to this question by analyzing price action during previous hard forks. Lets go!

DAO

The DAO fork was in response to the 2016 DAO attack where an insecure DAO contract was drained of over 3.6 million ETH in a hack.
Price grew 30% in 3 days, afterwards dropping -50%.
Nevertheless, if you would be a crypto believer at that time and wouldn't sell your tokens, in a year from a 10000$ you could have made up to 335000$


Byzanthium

This forked allowed layer 2 scaling and reduced block mining rewards from 5 ETH to 3 ETH
Price dropped 20% in the first week but overall rose by 430% in just 4 months. Holders were happy.


Constantinople

This fork:
• Ensured the blockchain didn't freeze before proof-of-stake was implemented.
• Optimised the gas
cost of certain actions in the EVM.
• Added the ability to interact with addresses that haven't been created yet
Price dropped almost by 10% in 5 days after launch, but if you wouldn't get scared you would earn 180% profit in 5 months as a holder.


Istanbul

Basically, a lot of scaling and security improvements.
Price dropped by 20% in 10 days, weak hands sold. Afterwards price rallied 95% in 2 months. In 9 months it rose 220% 🔥
Do you see a pattern?

Beacon Chain genesis

• Introduced staking on ETH chain
• Successfully started producing new blocks on Beacon chain. One step closer to ETH vision and PoS.
Price dropped 15% in first 10 days, afterwards it rallied 650% in 6 months.


Conclusion
By looking at all those examples we can see a pattern:
1. Price dropps 7-10 days after Fork
2. Then it rises minimum 2 months and sometimes longer giving us profit of at least 100%.


Hope this information was useful to you. If it was, drop a like and a comment so I will write such time-consuming educational posts in the future. 📄🖌

P.S. Always do your own analysis before a trade. Put a stop loss. Fix profit in parts. Withdraw profits in fiat and reward yourself 😊