Developers have confirmed the success of the Ethereum network transformation. Despite the success, the price of the token is still oscillating around $1,600. Continued risk aversion is weighing on cryptocurrency valuations:
- The transformation is the most important event, for Ethereum until its inception and the first of the announced 4 milestones in the development of Ethereum;
- Next, the developers will focus on the network fee model, which is ultimately expected to be significantly reduced. At the same time, however, the team will have to apply profit-support mechanisms for validators, for whom the payout is currently based on % from so-called gas fees (intra-network transaction fees);
- Ether miners have been replaced by validators, whose job is to validate transactions on the network. Validators deposit min. 32 ETH in the blockchain. The model resembles a bit of a 'lottery ticket' because the more traders hold staked ETH, the greater the chance that their pool will approve a transaction and receive a prize. The largest investors own up to thousands of such nodes. The activity of the network is also not insignificant because the more transactions it approves, the greater the number of transactions it unlocks for validators;
- The Ethereum price rally under the event 'the Merge' took place in a hostile economic environment and was not impressive. In addition, the price's rise was halted several times by inflation and Fed (Jackson Hole) readings, but still resulted in an increase of nearly 100% from the June lows by which, if the bears return to the market, we may see some investors' profits realized.
Ether's record impact on centralized exchanges spooked investors. The usual influx of cryptocurrencies on exchanges heralds the growing desire of investors to liquidate reserves. The number of ETHs held on centralized exchanges reached 25.34 million, a two-month peak, and the $1.2 billion inflow of tokens alone is the largest in nearly six months. Some analysts point out that the influx is related to the hard fork, and that the coins may have been moved to exchanges to raise a potential ETHPOW token, which was targeted at some investors in connection with the Merge. Source: Nansen
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Ethereum, M15 interval. The price has twice bounced off key resistance at the SMA200 near $1,600. The supply pressure may put the bulls against the wall, the sideways trend, which has been going on for some time now, probably foreshadows a stronger price movement coming up. Should the price fall, basic support is set by the recent price lows at $1480. In turn, an ascent above $1650 could be a strong buy signal, which would be supported by a formation of three increasingly higher-drawing lows. Source: xStation5
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