What you need to know about the Ethereum Merge
How does Ethereum work?
Ethereum is used by developers from around the globe for building apps. This is only a part of Ethereum. Other uses include making transactions, holding assets and communication, all without the need to divulge any personal details.
“You keep control of the data that is shared”.
Ethereum has its own cryptocurrency known as Ether, or eth for short.
Ether can be used to pay for activities that you undertake on the Ethereum network. Being the second largest cryptocurrency by market cap, it is also a very popular asset traded by crypto enthusiasts.
What is the Ethereum Merge and why all the hype?
Some reports are highlighting The Merge as the most important event that has hit the crypto marketplace this year. Others are saying that the event is the largest since the launch of Bitcoin in 2009.
This snippet was taken from Ethereum.org:
Figure 1 ethereum.org
What does all that mean?
In simplistic terms, The Merge is a long awaited and anticipated upgrade to the Ethereum blockchain. A blockchain is a database that stores information in a digital format.
Data that was stored on Ethereum’s mainnet will be transferred to the Beacon Chain system.
This will have a ‘greener’ effect on Ethereum, with the energy costs reducing by an estimated 99.95%. Computers that were energy heavy will be replaced by computers that are far more energy efficient.
When does The Merge happen?
The first stage, called ‘Bellatrix’, completed at 7.34 EST, on the 6th of September 20022. The second stage, called ‘Paris’, is estimated to be completed around mid-month.
Figure 2 coinmarketcap.com The Merge 07/09/2022 9.00am GMT
Will this be positive for the price of Ethereum?
Let us look at a possible outlook for ETHUSD using technical analysis
ETHUSD weekly chart
ETHUSD broke lower from a pattern known as a flag formation in the week 2nd May 2022. The technical measured move target for the flag is located at 877.16. We saw a low in ETHUSD on the week 13th June of 879.80.
Will we see another drive lower to this area? Could this possibly signal a base for ETHAUD?
Figure 3 Trading View ETHUSD Completed Flag