2022-7-31 23:35 |
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.
Related Reading: Proof of Work Vs Proof of Stake – Laneaxis
The Ethereum merge, also known as Ethereum 2.0, is the upgrade of the existing execution of the Ethereum layer 1 from proof-of-work (PoW) to proof-of-state (PoS), Beacon chain.
POW was first used by the early pioneers of the blockchain Bitcoin and Ethereum. It aims to achieve decentralization and security by using miners to decode cryptographic algorithms or puzzle-like maths.
As the demand increases for transactions, it becomes slow, gas fees increases, and resources intensify.
Proof-of-Stake (POS) is similar to POW, just that users authenticate transactions on the blockchain employing stake and get 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 Price Remain Strong Despite Daily ResistanceEthereum keeps showing great strength of bullish movement as the anticipated merge gets closer. Ethereum is currently trading at a resistance of $1,730 at the point of writing 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.
ETH 1D Resistance On Daily Chart | Source: ETHUSDT On Tradingview.comEthereum looks really good from the chart on a daily timeframe which is a good sign as we head into a new month. Due to a low volume on a weekend, Ethereum would have a tough time breaking the resistance.
If Ethereum is unable to break out successfully, we could retest the region of $1,600 as the nearest support before a major upside movement.
Ethereum Price On the 4H ChartEthereum is currently facing resistance at $1,730 with a low volume accompanying it. If there is going to be a pullback over the weekend the support at $1,600 would be a good entry.
ETH Faces Resistance At $1,730 With Low Volume | Source: ETHUSDT On Tradingview.com
Related Reading: Will The Ethereum Merge Skyrocket ETH?
The relative strength Index (RSI) is above the 50 mark indicating the market looks healthy but with less price action. With bulls pushing Ethereum in the coming days, breaking the resistance at $1,730 would not be much of a challenge.
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