Ethereum Merge has been completed today at 8:00 am BST and is said to be successful. This was a massive event for the cryptocurrency and could change the way it is viewed by some market participants. The Merge will end Ethereum's reliance on crypto miners and instead will rely more on validators. What does it mean? In short, Ethereum will no longer be as energy-intensive as it used to. In fact, energy consumption of Ethereum network is expected to drop by as much as 99% in the aftermath of the Merge. This means that the main hurdle that was preventing ESG-oriented investment funds from investing in it - high energy consumption - is gone. Of course, it does not mean that all of such funds will now jump to buy it. However, it means that this asset will be now eligible for inclusion in portoflios of more market participants.
While the event is certainly big for Ethereum, market reaction to the completion of the Merge was almost non-existent. Taking a look at the ETHEREUM chart at H1 interval, we can see that price is breaking back above the $1,600 resistance. A near-term resistance to watch can be found at 38.2% retracement of the downward move launched in mid-August ($1,650 area).
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appSource: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.