Summary:
- Ethereum core developers are confident the Merge will occur between the 15th and 16th of September.
- The transition to proof-of-stake will make Ethereum more energy efficient.
- ETH seemed ready to break past $2k but has since run out of momentum and is battling to regain the $1,600 price area as support.
For the greater part of 2022, the crypto and blockchain communities have eagerly been waiting on the progress of Ethereum’s transition from a proof-of-work network to a proof-of-stake. The Merge has already been successfully implemented on three of Ethereum’s testnets: Ropsten, Sepolia, and Goerli.
Ethereum’s Merge is Scheduled for Mid-September.
What remains is the Merge between the Ethereum 2.0 Beacon chain and the current proof-of-work mainnet. According to a recent developer’s conference call, the mid-September Merge schedule is still on track. The event has been estimated to occur between the 15th and 16th of next month.
$2k Seems Elusive for Ethereum.
The excitement surrounding Ethereum’s eventual transition to a more energy-efficient proof-of-stake network was self-evident in the price of ETH for the last few weeks and after June’s low of $881.
A quick look at the daily ETH/USDT chart below shows that since late June, Ethereum has managed to ride the excitement of the Merge to the $2k resistance level. However, its price action was rejected at this level, and Ethereum has since dropped to the 50-day (white) and 100-day (yellow) moving averages which provide adequate support at current levels of $1,600.
Also, from the chart, it can be observed that Ethereum is currently undergoing a pullback with its daily MFI, RSI, and MACD, confirming the renewed selling pressure.
To note is that the weekly close is only hours away, and the $1,600 support will be the level to watch for Ethereum. If the number two digital asset fails to hold a value above $1,600, ETH could be headed towards the next level of macro support at $1,400.
In addition, Bitcoin is also struggling to maintain a value above the crucial 200-week moving average. Any further losses by BTC will directly affect Ethereum. Conversely, if Bitcoin manages to reclaim the 200-week moving average as support at around the $23k price area, Ethereum could gather enough momentum to attempt another push towards $1,800 and ultimately $2k.
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