Ethereum Soars 41% In A Seven Day Run. Is the Upcoming Merge A Catalyst?
July 19 2022 - 9:04PM
NEWSBTC
The second-largest cryptocurrency by market cap, Ethereum, has
soared 45 percent during the past week, outperforming the majority
of other betable assets. There could be a simple explanation for
this: As Ethereum’s team of developers approaches the conclusion of
a multiyear, extremely difficult upgrade, traders are shifting
positive. Ethereum Surge The second-largest cryptocurrency by
market cap, Ethereum, has surged by 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 movements is the impending Ethereum merger.
Trading in ETH has changed from bearish to bullish as developers
get closer to finishing a multi-year, extremely difficult upgrade.
The entire ETH supply in profit has now risen to 56% with the
intense social expectation of the Merge, from lows of 41% just
prior to the current price spike. ETH/USD trades in new bullish
momentum. According to statistics from Glassnode, a significant
clearing out of short positions in the futures market was the
reason for Ethereum’s 22 percent gain this week. Glassnode tweeted:
“Over $98M in short futures positions were liquidated in one hour,
pushing $ETH prices up by 12.5%.” The Number of ETH Addresses in
Loss (7d MA) reached a 1-month low of 39,112,029 at press time,
further demonstrating ETH’s recent bullish trend. Source: Glassnode
Since the last actions that will really transfer Ethereum activity
to the Beacon Chain are scheduled for September, there is still
plenty of time for The Merge. Superphiz.eth, an Ethereum educator,
added in a Tweet that Goerli would undergo the merging transfer as
the last public testnet around August 11. The mainnet merge is
anticipated to float during the week of September 19 if everything
with Goerli goes according to plan. Related Reading | Ethereum
Classic (ETC) Reclaims $3 Billion Market Cap, More Upside To
Follow? Experts Opinion Youwei Yang, director of financial
analytics at StoneX, says that two “certainties” are the cause of
this upward rise for EthereumThe first is the recently announced
time for the Ethereum “merge” update, which should make the network
significantly more energy-efficient. Yang claims that the “calming”
of macroeconomic anxieties is the second. “Actually if you see the
price movement tick by tick, this time it’s more like ETH leading
BTC [or Bitcoin] instead of the other way around in usual times, so
it’s a strong indication of ETH-led bear market rally with the
confirmation and sentiment of ETH2.0,” said Yang, referring to
post-merge Ethereum. In his most recent episode of “The Breakdown,”
famous podcaster and devoted industry watcher Nathaniel Whittemore
made this assertion. There is a growing understanding that “the
Merge” might influence markets on Twitter, Discord, and everywhere
else people debate cryptocurrencies. After months of low prices,
the event suggests, as Whittemore put it, a “return of optimism” in
the cryptocurrency markets. The Merge also fills a “narrative
void,” allowing crypto enthusiasts to tell others stories about how
this technology is changing the world. Others believe that the
Merge could be causing ETH price to spike due to structural
reasons. The upgrade represents a fundamental change in the
potential applications of Ethereum by rewarding investors who stake
their assets in the network. Even Bitcoin-like deflationary forces
that further benefit holders could result from the move. People who
are purchasing ETH now in preparation may view it more as an
investment than a transaction in this scenario. Related Reading
| Liquidations Cross $230 Million As Ethereum Barrels Past
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