Ethereum is on the cusp of the breakthrough moment as it will undergo the transition into the Proof-of-Stake (PoS) to verify transactions via staking. Ethereum, which currently banks on the Proof-of-Work consensus, where cryptocurrency miners utilize high-powered computers to calculate hashes.
Through this process, the Ethereum transactions are verified before they are stored on the public blockchain. But post the transition, the Ethereum Merge as they call it, will bring in the utility value to the most preferred blockchain. Both users and developers are quite excited about the upgrade and believe that the recent developments will bring in a wave of change to Ethereum.
With the merge on Ropsten expected to take place on Wednesday, many experts believe that this could bring Ethereum back to the bullish phase, following the merge as it may see a pump in price.
Related read: Which are the countries curious to know about Ethereum Merge?
Ethereum’s prolonged bearish phase
Ethereum, just like Bitcoin, hasn’t seen the best movement in the market of late. Over the past 30 days, it has registered losses worth 30.1% with it dropping below the US$2,000. Its current price, as of 6 June, is around US$1,885.94 with a trading volume of US$12,34,91,96,416, according to CoinMarketCap.
The intraday RSI boasted of a decent rise following the announcement with it being placed at 43.83. Fortunately, this also comes with some good news with the price marked by a green candle stick.
Image Credit: TradingView
Ethereum’s Money Flow Index (MFI) indicates that is currently at 41.89, still below the neutral line. But the chart does indicate that the work is on its upward slide, indicating interest in the market. Without reading too much into it, the chart would give hope to Ethereum investors that this time it can rise above the neutral mark.
Related read: What is Ethereum Merge? What changes will it bring to the network?
It’s interesting to note that since 6 April, Ethereum’s MFI has largely been under 50 and was also badly hit by the crypto bloodbath in May.
Even the MACD line during the intraday trading is showing signs of moving up with the MACD line creating small but decent space between the signal line.
Prospects of Ethereum Merge
Many market experts believe that Ethereum may perhaps witness positive movements following the upgrade. Having said that, the experts believe that it would be in the longer run, rather than the short term. Besides, it could also speed up Ethereum’s processing speed and would offer greater security and stability, along with a reduction in Ethereum’s energy consumption
This could benefit the Ethereum ecosystem considering it could challenge the Ethereum killers, such as Polkadot, Solana, etc., as the upgrade would help the network to scale, resulting in greater adoption of blockchain technology.
Overall, the entire ecosystem is looking forward to the Ethereum Merge event. The significance of these changes remains to be seen. But surely, they will help Ethereum to scale up. But as a market participant, one also must be mindful of the sudden change in prices and how the momentum can shift. So, they must tread carefully and should study the trends, and then take the investment decisions.
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