ETH merge .. noise or signal
There is already a lot of noise surrounding Ethereum’s upcoming Merge understandably with many people trying to take advantage of the situation. The Ethereum Merge, which will transition the network from proof-of-work to proof-of-stake, is considered by many the most significant event in crypto and even the internet and it is just a couple of weeks away.
As the date approaches, many will try to use the moment in their favor, which could be a risk in and of itself. Those involved in the Ethereum community know this has been coming since day one. There are inherent problems with the proof of work framework and it has taken a long time to develop and implement an alternative.
In the last 45 days, the cryptocurrency witnessed high volatility with huge upward movements and instant corrections. ETH reached a peak of $2,000 recently compared with the lows of $800.
This pattern of high volatility is not necessarily a bad thing for Ethereum, according to top traders in the community. Those who are entrenched in the Ethereum ecosystem are extremely bullish on Ethereum in the long term perspective. Top traders like Scott Melker, host of The Wolf Of All Streets podcast, stated that he would like to take a position in ETH at the $1,200 range. If we see a break below the current level, there could be a drop to the range of $1,284. A price push to $1,690s could induce a drop, he added. However, it is not certain to happen but expected on the lines of previous movements, he said.
The Ethereum network will soon transform to the Proof of Stake as its consensus mechanism after the Merge. Right now, the network uses Proof of Work, another popular consensus mechanism. The Merge transition had officially begun recently with the release of the update v22.8.1 for Mainnet users. The update helps enable the Bellatrix upgrade and Merge transition configuration.
As of writing, Ethereum (ETH) price stands at $1,623.61, down 0.34% in the last 24 hours, according to price tracking website CoinMarketCap. On a weekly basis, the cryptocurrency is down 14.32%.
By Chas Gunaratne