The Ethereum “Merge” has become a hot topic among top crypto analysts after the incident that led to the collapse of the Ethereum network in the sale of Otherside by Yuga labs, with nearly $200M lost as gas fees.
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An upgrade to existing Ethereum layer 1 proof-ofwork execution (PoW) is known as the Ethereum merge (also called Ethereum 2.0). It involves the Beacon chain.
The early innovators of blockchain Bitcoin and Ethereum first utilized POW. The goal of POW is to secure decentralization by using miners for cryptographic algorithm decoding or puzzle-like maths.
Transactions become more expensive as they are demanded. Gas fees rise and the need for resources increases.
Proof-of–Stake (POS), is very similar to POW. Users authenticate transactions via the blockchain using stake, and are rewarded.
“The Merge” is a massive step for Ethereum and the community; it is important to note that the Beacon chain is shipped separately from the Ethereum mainnet. It means the Beacon works in parallel as POS, and all accounts, transactions, balances, and smart contracts remain secured by POW until the final merge to POS.
Ethereum’s Price Holds Strong, Despite the Daily Resistance
The anticipated merger of Ethereum and Bitcoin is closer. Ethereum shows great potential for bullish movements. Ethereum currently trades above $1,730 as of the writing of this article on the 1D Daily Chart.
A break of this region would send Ethereum’s price to $2,400 and even higher if the bulls and sentiments of the market stay strong ahead of the merge.
The chart of Ethereum shows a very positive picture on a daily basis. This is good news as we enter a new month. Ethereum will have trouble breaking the resistance due to low volumes on weekends.
We could test the $1,600 region as a support level before Ethereum makes a successful breakout.
Ethereum Price on the 4-H Chart
Ethereum currently faces resistance at $1730, with low volumes accompanying. Support at $1,600 is a great entry point if there’s a pullback this weekend.
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The relative strength index (RSI), is at or above 50. This indicates the market’s health, but less price action. Breaking the $1,730 resistance would be easy with bulls pushing Ethereum.