The second-largest cryptocurrency by market capitalization, Ethereum, has surged 45% over the past week, outperforming most other assets to bet on. There can be a simple explanation for this:
As the Ethereum development team nears the end of a multi-year, extremely difficult upgrade, traders are tuning in positively.
The second-largest cryptocurrency by market cap, Ethereum, has surged about 45% over the past week, outperforming most of the top 100 crypto assets. While there are many theories surrounding ETH’s bullish trend, one of the main drivers behind the price movement is the upcoming Ethereum merger.
ETH trading has turned from bearish to bullish as developers near the end of a multi-year, extremely difficult update. All ETH supply in profits has now risen to 56% due to intense social anticipation for a merger from a low of 41% just before the current price spike.
ETH/USD is trading in a new bullish momentum.
According to statistics from Glassnode, significant short-covering in the futures market is behind Ethereum’s 22% gain this week.
glass knot tweeted:
“More than $98 million in short futures positions were liquidated in one hour, pushing $ETH prices up 12.5%.”
The number of losing ETH addresses (7d MA) hit a monthly low of 39,112,029 at press time, further demonstrating the recent bullish trend in ETH.
With the final actions that will actually move Ethereum activity to the Beacon Chain scheduled for September, there is still plenty of time for The Merge. Superphiz.eth, an Ethereum educator, added on Twitter that Goerli will undergo a merger move as the last public testnet around August 11th.
The mainnet merger is expected to happen within the week of September 19 if everything goes according to plan with Goerli.
| Ethereum Classic (ETC) Recovers $3 Billion Market Cap, What Will Further Growth Follow?
Yuwei Yang, director of financial analytics at StoneX, says there are two “certainties” behind this upward growth for Ethereum. First, it is the recently announced Ethereum “merger” upgrade time, which should make the network significantly more energy efficient. Yang argues that “calming” macroeconomic concerns is the second.
“In fact, if you see tick by tick price movement, this time it looks more like ETH outperforming BTC. [or Bitcoin] and not vice versa during normal times, so this is a clear sign of an ETH-led bear market rally with confirmation and ETH2.0 sentiment,” Yang said, referring to post-merger Ethereum.
In his latest episode of The Breakdown, renowned podcaster and dedicated industry watcher Nathaniel Whittemore made the claim. There is growing awareness that the “merger” could impact the markets on Twitter, Discord, and wherever people discuss cryptocurrencies.
After several months of low prices, this event suggests, as Whittemore puts it, “a return of optimism” to the cryptocurrency markets. The merger also fills the “narrative void” by allowing crypto enthusiasts to tell others stories about how this technology is changing the world.
Others believe that the merger could cause the price of ETH to spike for structural reasons. The update represents a fundamental change to potential Ethereum applications, rewarding investors who place their assets on the network. Even deflationary forces like bitcoin could emerge as a result of this move, bringing additional benefits to holders. People who buy ETH currently in preparation may view it more as an investment than a transaction in this scenario.
| Liquidation tops $230 million as Ethereum barrels top $1,400
Featured image from The Shutterstock, chart from TradingView.com
Credit : www.newsbtc.com