The massive sudden rise and fall of Ethereum (ETH) comes two days after developer Tim Beiko confirmed the Merge schedule on September 19.
ETH’s massive surges and drops amid the Merge hype
ETH is exploding.
Ethereum (ETH) price is up 12% in the past 24 hours, hitting $1,422 for the first time in a month, then has since dropped slightly and trades at $1,357 at the moment.
ETH’s massive abrupt rise and fall has led to a market-wide rally, helping assets like Synthetix (SNX) and Avalanche (AVAX) post double-digit gains. Lido Staked Ether (stETH) is also up only about 12.6%, while LDO, the governance token for the Lido DAO, is up 22.8%. Interestingly, Bitcoin (BTC) is only up around 3.2%, showing that Ethereum is leading the current massive spike and drop despite Bitcoin’s dominance in the market.
While the exact reason for the massive spike and drop is still unclear, sentiment has improved around Ethereum and the upcoming “Merge” event – converting the mechanism of action to Proof-of-Stake ( PoS) – can be a trigger. On Thursday (July 14), the Ethereum Foundation held its latest Consensus Layer Call, lead developer Tim Beiko suggested a scheduled Merge launch date of September 19, strongly suggesting The most anticipated event is likely to take place in the next few weeks.
Before the Merge can take place on the Mainnet, Ethereum will undergo one final test run on the Goerli network over the next few weeks. The final launch will follow that, although Beiko has indicated that September 19 is tentative and subject to change.
The Merge update involves merging Ethereum’s execution and consensus layers to move the network away from Proof-of-Work (POW) and to POS – which is expected to reduce the network’s power consumption. 99.95%. Merge is also seen as a bullish catalyst for ETH as it is set to reduce the issuance of the network by around 90%. When moving to POS, the network will no longer pay miners and instead provide validator-specific fees. Since Ethereum also burned a portion of the gas fee supply through EIP-1559, it is estimated that ETH could become a deflationary asset after the update. According to Ultrasound.money, if Merge activates on September 19, the ETH supply will peak at 120.2 million and begin to decline over time.
With the latest Merge update, the market may be pricing in the positive impact of the update despite the multi-month slump that has affected ETH and other crypto assets this year. .
Over $150 Million in ETH Liquidated as Price Soars to Monthly Highs
According to data from Coinglass, the past four hours have seen over $150 million in ETH positions liquidated with the largest single order liquidation occurring on the FTX exchange and it being valued at $2.81 million. la.
Needless to say, the majority of positions liquidated were Shorts. This came after ETH exploded 7% in an hourly candle, hitting a high of $1,422 on Binance with over $300 million in trading volume.
The last time ETH traded at these prices was on June 13, which means monthly highs were charted.