The Ethereum “Merger” has become a hot topic among leading cryptanalysts after the incident that led to the collapse of the Ethereum network in the sale of Otherside by Yuga Labs, with nearly $200 million lost in damages. gas rates.
Related Reading: Proof of Work vs. Proof of Stake – Laneaxis
Ethereum Fusion, also known as Ethereum 2.0, is the upgrade of Ethereum’s existing Layer 1 run from Proof-of-Work (PoW) to Proof-of-State (PoS), Chain Beacon.
POW was first used by the early pioneers of the Bitcoin and Ethereum blockchain. Its goal is to achieve decentralization and security by using miners to decode cryptographic algorithms or puzzle-like math.
As transaction demand increases, it becomes slow, gas rates rise and resources intensify.
Proof of Stake (POS) is similar to POW, only users authenticate transactions on the blockchain using staking and earn a reward.
“The Merge” is a big step for Ethereum and the community; It is important to note that the Beacon Chain is shipped separately from the Ethereum mainnet. It means that Beacon works in parallel as POS, and all accounts, transactions, balances and smart contracts remain protected by POW until the final merger with POS.
Ethereum price remains strong despite daily resistance
Ethereum continues to show strong bullish movement strength as the anticipated meltdown approaches. Ethereum is currently trading at resistance at $1,730 at time of writing on the 1D daily chart.
A breakout of this region would send Ethereum price to $2,400 and even higher if bulls and market sentiments remain strong ahead of the meltdown.
ETH 1D resistance on daily chart | Source: ETHUSDT at Tradingview.com
Ethereum looks great on the chart on a daily time frame, which is a good sign as we head into a new month. Due to low volume on a weekend, Ethereum would have a hard time breaking resistance.
If Ethereum fails to break out successfully, we could retest the $1,600 region as the closest support before a big move higher.
Ethereum price on the 4H chart
Ethereum is currently facing resistance at $1,730 with accompanying low volume. 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 on low volume | Source: ETHUSDT at Tradingview.com
Related Reading: Does Ethereum Merge Skyrocket ETH?
The Relative Strength Index (RSI) is above the 50 mark, indicating that the market is looking healthy but with less price action. With the bulls pushing Ethereum over the next few days, breaking the resistance at $1,730 would not be much of a challenge.
This post How high can Ethereum go before the merger?
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