On Monday, Ethereum (ETH), which was a part of the recent rally, saw its price drop slightly. After reaching a high of US$1,665, the ETH token trades at US$1,523 currently. The current price of the ETH token is currently trading at US$1,523 after reaching a peak of US$1,665.
Pending Ethereum merger remains an important catalyst
Recent months have seen an increase in Ethereum’s price. The main reason for this was the general recovery in the crypto market. However, the news about the upgrade of ETH 2.0, which had been delayed multiple times, also played a role.
The so-called “fusion” refers to Ethereum’s transformation from the Proof-of-Work(PoW) concept into Proof-of-Stake (“PoS”) mode. This is the principle that transactions can be verified and the blockchain’s operation is guaranteed.
The upgrade aims to make Ethereum faster and more affordable for developers and users. This upgrade will also decrease Ethereum’s environmental footprint as it will no longer depend on prospectors. After that, it will all be about staking.
History has shown that PoS network features are better than those that use proof of work. Many smart contracts platforms use this technology, such as Solana, Cardano and Hive.
Ethereum developers hint that the switch may happen soon. According to analysts, the merger will take place in September once the testing is finished. Developers will implement sharding once the upgrade is complete. Sharding allows for more transactions to be processed in the same time. This is done by splitting blocks into smaller chunks. These are called shards.
As investors believed the worst was over, the Ethereum price rose. There has been no domino effect and crypto companies like Voyager Digital, Celsius, and Three Arrows Capital are not insolvent, contrary to what many fear.
The decentralised finance space (DeFi), however, has done well in recent week. The sector’s total value of transactions has increased from $73 million this month to more like $84 billion.
Forecast Ethereum Price
The chart shows that Ethereum prices have been recovering strongly in recent weeks. After the coin rose above the crucial resistance level of US$1,278, it gained momentum. It was above this level that the Ethereum price could not move in June or at the beginning month.
Now, the Ether price has entered an ascending channel. This channel is shown in black. Today’s price has risen slightly from the bottom. Bullish flag patterns can also be described as the trading range. If investors aim at the top of the trading range at US$1,660, the coin could resume its uptrend.