Implications of „Ethereum Merge “
After many delays, the Ethereum Merge finally took place during the early hours of September 15.
Until now, both Ethereum and Bitcoin were running on proof-of-work, which requires high-powered computers to verify transactions and "mine" new coins across a decentralized global computer network. The long-awaited merge moves Ethereum onto a more energy-efficient "proof-of-stake" mechanism for validating transactions.
Barring any snags with the merge, the Ethereum network, which houses the entire community of NFTs (non-fungible tokens), should function just as it had before, but using radically less electricity and, supporters say, making the network more secure.
The Merge is basically an upgrade to the Ethereum blockchain, which powers innovations in the crypto ecosystem like non-fungible tokens (NFTs).
Fans of crypto — and the Ethereum network specifically — were hoping that the move will help boost Ethereum's price. Indeed, during the past two years Ethereum price significantly outperformed Bitcoin.
Between September 13 and September 14 Ethereum’s price jumped by almost 8% to $1470. However, after the day of the Merge (September 15) the price fell to $1293, thus approaching 200MA critical line on a weekly chart and pointing to another possible bearish move to $1000.
In our view, the Merge really sets the groundwork for other advancements hoping to be made on the Ethereum network in the future. However, we believe that the long-term assessment of the real value of Ethereum will likely be judged by the subsequent years of development on the blockchain and the applications and technologies which emerge. Currently due to significant weakening in cash liquidity, mainly driven be monetary tightening, we see more downside in Ethereum price in the coming months.
After many delays, the Ethereum Merge finally took place during the early hours of September 15.
Until now, both Ethereum and Bitcoin were running on proof-of-work, which requires high-powered computers to verify transactions and "mine" new coins across a decentralized global computer network. The long-awaited merge moves Ethereum onto a more energy-efficient "proof-of-stake" mechanism for validating transactions.
Barring any snags with the merge, the Ethereum network, which houses the entire community of NFTs (non-fungible tokens), should function just as it had before, but using radically less electricity and, supporters say, making the network more secure.
The Merge is basically an upgrade to the Ethereum blockchain, which powers innovations in the crypto ecosystem like non-fungible tokens (NFTs).
Fans of crypto — and the Ethereum network specifically — were hoping that the move will help boost Ethereum's price. Indeed, during the past two years Ethereum price significantly outperformed Bitcoin.
Between September 13 and September 14 Ethereum’s price jumped by almost 8% to $1470. However, after the day of the Merge (September 15) the price fell to $1293, thus approaching 200MA critical line on a weekly chart and pointing to another possible bearish move to $1000.
In our view, the Merge really sets the groundwork for other advancements hoping to be made on the Ethereum network in the future. However, we believe that the long-term assessment of the real value of Ethereum will likely be judged by the subsequent years of development on the blockchain and the applications and technologies which emerge. Currently due to significant weakening in cash liquidity, mainly driven be monetary tightening, we see more downside in Ethereum price in the coming months.