How High Can Ethereum Go Before The Merge


Ethereum “merging” 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 200 million dollars lost in gas fees.

Related reading: Proof of Work vs. Proof of Stake – Laneaxis

The Ethereum merger, also known as Ethereum 2.0, is Upgrading the current implementation of Ethereum Layer 1 from Proof of Work (PoW) to Proof of State (PoS)beacon series.

POW was first used by the early pioneers of the Bitcoin and Ethereum blockchain. It aims to achieve decentralization and security by using miners to decipher cryptographic algorithms or puzzle-like mathematics.

As transaction demand increases, it becomes sluggish, gas fees increase, and resources condense.

Proof of Stake (POS) is similar to POW, only that users authenticate transactions on the blockchain that use the stake and receive rewards.

The “merger” is a huge step for Ethereum and the community; It is important to note that the Beacon chain is shipped separately from the main Ethereum network. This means that Beacon operates in parallel with the POS, and all accounts, transactions, balances and smart contracts remain secured by POW until the final POS integration.

Ethereum price remains strong despite daily resistance

Ethereum continues to show great strength for the bullish move as the expected consolidation approaches. Ethereum is currently trading at the $1,730 resistance at the time of writing on the 1D daily chart.

A break of this zone will send Ethereum price to $2,400 and even higher if the bulls remain and market sentiment remains strong before the consolidation.

1D diagram
ETH 1D resistance on the daily chart | Source: ETHUSDT On Tradingview.com

Ethereum looks really good on the daily time frame which is a good sign as we head into a new month. With trading volume down over the weekend, Ethereum will have a tough time breaking out of the resistance.

If Ethereum is not able to breach it successfully, we can retest the $1600 area as the nearest support before the major upward move.

Ethereum price on 4H chart

Ethereum is currently facing resistance at $1,730 with low volume accompanying it. If there is a pullback over the weekend, then the $1600 support would be a good entry.

ETHUSDT
ETH is facing resistance at $1,730 with lower volume | Source: ETHUSDT On Tradingview.com

Related reading: Will Ethereum Skyrocket Merge ETH?

The Relative Strength Index (RSI) is above the 50 mark which indicates that the market is looking healthy but with less price action. With the bulls driving Ethereum in the coming days, breaking the resistance at $1,730 will not be much of a challenge.



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