Ethereum Soars 41% In A Seven Day Run. Is the Upcoming Merge A Catalyst?


The second largest cryptocurrency by market capitalization, Ethereum, is up 45 percent over the past week, outperforming the majority of other assets to bet on. There could be a simple explanation for this:

With the Ethereum developer team nearing completion of a multi-year and very difficult upgrade, merchants are turning positive.

ethereum high

The second largest cryptocurrency by market capitalization, Ethereum, is up about 45% over the past week, outperforming the majority of the top 100 crypto assets. While there are many theories surrounding ETH’s bullish trend, one of the main drivers of price action is the impending Ethereum consolidation.

Trading in ETH has changed from bearish to bullish as the developers are nearing completion of a very difficult multi-year upgrade. Total ETH supply is now up to 56% in profit, with intense social expectations for the merger, from as low as 41% prior to the current price hike.

Ethereum

ETH/USD is trading with fresh bullish momentum.

According to statistics from Glassnode, the large clearing of short positions in the futures market was the reason for Ethereum’s 22 percent gain this week.

glass chirp:

“More than $98 million of short futures positions were liquidated in one hour, sending ETH price up 12.5%.”

The number of losing ETH titles (7d MA) reached a one-month low of 39,112,029 at press time, indicative of ETH’s recent bullish trend.

Source: Glassnode

With the latest actions that will actually move Ethereum activity to the Beacon Chain slated for September, there is still plenty of time for The Merge. Superphiz.eth, an Ethereum mentor, added in a tweet that Goerli will undergo a merge transition as the last public test of the network around August 11.

The mainnet consolidation is expected during the week of September 19th if all goes with Goerli according to plan.

Related reading | Ethereum Classic (ETC) Gets Back Its $3 Billion Market Cap, Is There More Upside To Follow?

Expert opinion

Youwei Yang, director of financial analytics at StoneX, says the “certainty” behind this first Ethereum rally is the recently announced time for an Ethereum “consolidation” update, which should make the network significantly more energy efficient. Yang claims that the “calm down” of macroeconomic concerns is the second.

“Indeed, if price action sees tick by tick, this time it’s like ETH’s flagship BTC.” [or Bitcoin] Rather than the other way around in usual times, so it is a strong indication of a bull market led by ETH with ETH2.0 confirmation and sentiment,” Yang said, referring to Ethereum after the merger.

On his most recent episode of “The Breakdown,” this assertion was made by popular podcaster and devoted industry watcher Nathaniel Whitmore. There is a growing understanding that “merging” could affect the markets on Twitter, Discord, and everywhere else people are discussing cryptocurrencies.

After months of lower prices, the event signals, as Whitmore said, a “return of optimism” in the cryptocurrency markets. The merger also fills a “narrative void,” allowing crypto enthusiasts to tell others stories about how this technology has changed the world.

Others believe that the merger could cause the price of Ethereum to rise for structural reasons. The upgrade represents a fundamental change in the potential applications of Ethereum by rewarding investors who share their assets in the network. Even the deflationary forces similar to bitcoin that benefit its holders may result from this move. People who are buying ETH now in the pipeline might consider it an investment rather than a transaction in this scenario.

Related reading | Liquidation crossed $230 million as Ethereum barrels crossed $1,400

Featured image from The Shutterstock, chart from TradingView.com





Leave a Comment

Your email address will not be published.