The Ethereum Merger Complete! 📌Crypto down slightly

The developers have confirmed the success of the transformation of the Ethereum network. Despite its success, the price of the token is still hovering around $1,600. Persistent risk aversion weighs on cryptocurrency valuations:

  • This merger is the most significant event for Ethereum since its inception and the first of 4 announced phases in Ethereum’s development.
  • Next, the developers will focus on the network fee model, which should eventually be significantly reduced. At the same time, however, the team will have to implement profit-support mechanisms for validators, for which payment is currently based on a percentage of the so-called gas fee (intra-network transaction fee).
  • Ether miners are now validators, whose job is to validate transactions on the network. A deposit from the validators of 32 ETH in the blockchain is required. The model is somewhat like a “lottery ticket” in that the more stacked ETH validators have, the more likely their pool will approve a trade and receive a prize. The largest investors own up to thousands of these nodes. The activity of the network is also not negligible, because the more transactions it approves, the more transactions it releases to the validators.
  • The price increase of Ethereum in the “The Merge” event took place in a harsh economic environment and was not impressive. In addition, the price increase has been stopped several times by inflation and statements from the Fed (Jackson Hole).

Ether’s record impact on centralized exchanges has scared investors. The usual influx of cryptocurrencies on the exchanges heralds the growing desire of investors to liquidate reserves. The amount of ETH held on centralized exchanges reached 25.34 million, a two-month high, and the token inflow of $1.2 billion alone is the largest in nearly six months. Some analysts point out that the influx is related to the hard fork and that the tokens may have moved to exchanges to generate a potential ETHPOW token, which was intended for certain investors as part of the merger. Source: Nansen

Ethereum, interval M15. The price bounced off the main resistance twice at the 200 SMA level near $1,600. Supply pressure could push the bulls back against the wall, the sideways trend, which has been going on for a while, probably portends a stronger price move ahead. If the price falls, major support is provided by the recent declines in price from $1480. A rise above $1650 could in turn be a strong buy signal, which would be supported by a rising triple bottom formation. Source: xStation5

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