Ethereum has been trying to overcome the € 2,000 barrier without getting it, encouraged by the good news that is known about The Merge, the great change from Pow to Pos.
If Ethereum managed to exceed that barrier would have little resistance until reaching € 2,600, something that is feasible since investors seem to have a certain degree of optimism with The Merge .
The Merge
The Merge is basically summarized in a method of consensus of work test (Pow) participation proof (POS) . It would go from a system based on cryptocurrency mining, with a very high level of CO 2 , to a system based on "hold" Ethereum , that is, buy tokens to save them, which has an infinitely lower environmental impact.
As explained by the developers of the Ethereum Foundation, The Merge, the first phase towards the construction of Ethereum 2.0, will be responsible for merging the current main network, based on Proof of Work with Beacon Chain, which uses the Proof of Stake consensus protocol. But this fusion is only intended to eliminate the need for energy intensive mining, not to increase the scalability of the network. The latter will come with the following development phases.
This fusion is currently launched, since the total difficulty of the mining has been established in 5875000000000000000000. This means that the Ethereum Pow now has a fixed amount (approximately) fixed hashes to undermine. If the hashrate (speed or mining power) does not vary much, this indicates that the real fusion will occur on September 15.
The increase in the scalability of Ethereum will arrive with The Surge, Ethereum's next update after The Merge, which is expected to arrive in 2023, according to the road map shared by Vitalik Buterin during his participation in the ETHCC 5 conference.
This change has not sat very well within the Ethereum , which has made several threats to bifurcar the network to continue mine. Today there is no clear bifurcation project and although it happened, it could get a poor result as happened with Ethereum Classic .
How can you influence the price of ETH?
This event generates a lot of expectation in the investors of Ethereum and the Crypto market in general, so this is reflected in the price of its cryptocurrency, ETH , whose market capitalization grows USD 20 billion from minimums.
In recent weeks, the Crypto market has had a respite and rises moderately, with Ethereum leading the climb above Bitcoin. Its price rises more than 100% from minimums of 2022, when it fell around € 800.
Ethereum event as one of the most important in the brief history of cryptocurrencies and already has an approximate launch date increases investment optimism.
Ethereum will sit this fusion, what will be the effect within the market and its price, but it is impossible to deny that we have the opportunity to witness a great milestone in the history of Ethereum that can revolutionize its technology forever.
In addition, we must bear in mind that The Merge will turn Ethereum into deflation. The new protocol will burn more tokens than new ones are generated, which, by logic, should lead to the currency being revalued.
