Category: Cryptocurrency News

The Ethereum upgrade has shifted the network from Proof-of-Work (PoW) to Proof-of-Stake (PoS). The Ethereum mainnet and the Beacon Chain will finally merge as a single blockchain through the transition. According to the estimations of EtherNodes, the Ethereum transition will occur if there are no underlying technical challenges. Before now, the team of developers confirmed the checklist for the Merge before releasing it. Related Reading: Investor Sentiment Sees Sharp Positive Spike Following Crypto Market Recovery There have been several sentiments and reactions concerning the Merge lately. This significantly impacted ETH and all its derivatives in the crypto market. Some participants are accumulating more expecting a sudden spike in price. But some are even disposing of what they have due to fear of volatility. Sentiments On Merge Affects ETH Funding Rates Currently, expectations and more attention are glued to the Ethereum blockchain. But based on the state of the miners, there could be variation in the transition estimated time. From the look of things, the ETH futures traders seem to be calculating their moves. The data from CryptoQuant revealed that Ethereum funding rates had hit a new all-time low. This recent point marks the lowest for the Ether derivatives. ETH funding rate is a metric that provides forced convergence of prices between the contract and the underlying asset. It indicates the payment that comes from long to short or short to long traders. The difference between an asset’s spot and the perpetual futures contract prices provides the funding rate. Negative Value For Ethereum Funding Rates And Implication CryptoQuant data give a negative value for the Ethereum funding rates. This means that the dominant force in the order book goes to short traders. Hence, will be paying long traders accordingly. Futures traders place high importance on funding rates. This is because these rates are like spontaneous catalysts that could alter their trading stance positively or negatively. As a result, they will make huge profits or suffer massive losses. Related Reading: Bitcoin Must Hold This Level Or Risk Falling To $10,000 Usually, traders that pay high funding while using high leverage will likely have losses. However, such a flip is possible to occur even when the market is not under a severe bearish influence. So, they may resort to hedging as protection. The negative value of the ETH funding rates implies that futures traders are currently hedging their spot exposure. A considerable explanation for such results points to the Merge. Hence, the traders could exercise more caution due to potential volatility that could erupt after the transition. Featured image from CNN, chart from TradingView.com

The Ethereum merge is among the most significant events since its blockchain and the industry emerged. The event will move the blockchain from Proof-of-work (POW) to proof-of-stake (POS). While everyone is waiting for the positive impacts of Merge. The effect of the transition is already resounding in the crypto market. The market saw a major decrease in Ethereum prices in the last 48 hours. Moreover, Crypto market analysis experts fear that there may be a further drop in Ethereum price after the merge. Related Reading: Bitcoin Must Hold This Level Or Risk Falling To $10,000 While everyone expects good results, there is yet a possibility that a hard fork may occur. If this happens, it will affect crypto prices negatively. Merge Hype May Be A Buy Rumour, Sell News Scenario Ether has already performed better than BTC in the past weeks, courtesy of the merge hype. However, some experts fear the merge hype might have a ‘buy the rumor and sell the news outcome. The buy the rumor and sell the news event happens in the capital markets. It is when high expectations of Merge events or economic reports cause a hike in asset prices. The hiked prices fall again after the event passes. Popular Cryptocurrency trader and influencer Lark Davis expressed his thought about the hype. In his tweet, he said the merge is a fundamentally bullish event. Davis outlined the features expected of the coming Ethereum POS. However, he also stated that they wouldn’t bring a significant impact immediately. Following Davis’ analysis, the impact of an increase in energy efficiency, emissions, and all the features will only reflect in the long run. Therefore, he thinks the Ethereum merge has the ‘sell the news effect. Another major crypto influencer, Quinten Francios, commented on the merge hype. According to Francios, the post-merge Ethereum price will drop as opposed to the Bitcoin price. Therefore, it implies that Bitcoin price will rise while Ethereum price will fall post-merge. He added that the Ethereum price would recover strongly after some time. Ethereum Merge Won’t Solve Other Fundamental Problems Experts have explained the reason Ethereum merge results will not take effect quickly. The transition will change the consensus mechanism of the blockchain to POS but won’t solve some other fundamental problems. For example, it won’t address the issue of low gas fees or expand the network’s capacity. It won’t also improve the transaction speed. A smoothly executed upgrade won’t address the problem of high transaction fees. The CEO of Aloe, Haward Wu, expressed his concerns on LinkedIn regarding the high gas fees in Layer-2s. He said they would only be scalable if enabled by Ethereum’s throughput. Related Reading: Bitcoin ETF Inflows Returns After Abysmal Phase But Buterin’s Four-phased theory may address these issues. His data sharding, execution, and scaling solutions solve all the problems. Featured image from Pexels, chart from TradingView.com

Yuga Labs was said to be looking at raising around $50 million from the sale of 100,000 tokenized land plots, but the firm’s co-founder says it’s all “fake news.”

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Interest in hardware wallets allowing cold storage of cryptocurrencies is decreasing among Russian users after this year’s surge that followed the invasion of Ukraine. The sale volumes for these devices have almost halved, according to a report quoting leading marketplaces. Russians’ Demand for Cold Storage Wallets Cools Down After Spike This Spring Retailers selling hardware […]

Ethereum declined sharply from the $1,655 resistance zone against the US Dollar. ETH is struggling and remains at a risk of more losses below the $1,450 level. Ethereum started a fresh decline after it failed to clear the $1,650 resistance zone. The price is now trading below $1,550 and the 100 hourly simple moving average. There is a major bearish trend line forming with resistance near $1,610 on the hourly chart of ETH/USD (data feed via Kraken). The pair could accelerate further lower below the $1,450 support zone in the near term. Ethereum Price Starts Fresh Decline Ethereum failed to gain strength for a move above the $1,650 and $1,660 resistance levels. ETH formed a top near the $1,653 level and started a fresh decline. There was a steady decline below the $1,600 level and the 100 hourly simple moving average. The price even traded below the $1,550 and $1,520 support levels. There was a drop over around 10% and the price traded as low as $1,453. Ether price is now consolidating losses above the $1,450 level and below the 100 hourly simple moving average. On the upside, the price is facing resistance near the $1,500 level. It is near the 23.6% Fib retracement level of the recent decline from the $1,653 swing high to $1,453 low. The next major resistance is near the $1,550 and $1,560 levels. It is near the 50% Fib retracement level of the recent decline from the $1,653 swing high to $1,453 low. Source: ETHUSD on TradingView.com A clear break above $1,560 might send the price towards the $1,600 level. There is also a major bearish trend line forming with resistance near $1,610 on the hourly chart of ETH/USD. Any more gains may perhaps open the doors for a move towards the $1,650 resistance in the near term. More Losses in ETH? If ethereum fails to rise above the $1,500 resistance, it could continue to move down. An initial support on the downside is near the $1,450 zone. The next major support is near $1,420. A downside break below the $1,420 support might another sharp decline. In the stated case, ether price might decline towards the $1,350 level. Technical Indicators Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone. Hourly RSI – The RSI for ETH/USD is now below the 50 level. Major Support Level – $1,450 Major Resistance Level – $1,550

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Following the Ethereum Merge, Dogecoin now only trails Bitcoin as the biggest proof-of-work cryptocurrency.

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