Ethereum developers set a date for the highly anticipated Merge at a meeting they organized, although it is not certain. The developers marked September 19 for the update, after which the leading altcoin saw a 12% increase. So what is this Merge let’s take a look together.
What is Merge?
As you know, the Ethereum blockchain network has a Proof of Work consensus mechanism, that is, a proof-of-work mechanism, as in Bitcoin. However, although this structure offers stability, it is not considered a very efficient method today. Because in this mechanism, we encounter problems such as gas fees and high transaction times, and we can say that these situations kind of overwhelm the network users. Therefore, Ethereum has been planning for a long time to switch from the Proof of Work mechanism to the Proof of Stake mechanism, that is, the proof-of-stake mechanism. Ethereum Merge actually refers to the transition of the Ethereum mainnet to a proof-of-stake system. With this transition, or we can call it a merger, there will be a transition from Ethereum 1.0 to Ethereum 2.0. In this way, Ethereum 2.0 will use 99.95% less energy than Ethereum 1.0. According to experts, with the Ethereum Merge upgrade, we will see effects such as higher usage of decentralized applications, high scalability and fast transaction processing. Along with all this, the level of security in the Ethereum network will also increase, and it is thought that this situation will attract the attention of institutional investors. We can think of The Merge upgrade as an interim period in the transition to Ethereum 2.0. The developers had created a roadmap for Ethereum 2.0, and one of the stages in that roadmap was the Merge upgrade. The first step of this transition phase was a series of steps that took place in 2020 with Phase 0, known as the Beacon Chain. If we explain it very briefly, we can say that The Merge means the beginning of a new era for Ethereum.
Ethereum Price Analysis
When we look at the price chart of the leading altcoin Ethereum, we see that it has increased by 6.50% according to the last 24-hour data and is priced at $ 1456. We can say that the Merge update is behind this improvement in Ethereum price. We see the $1340 level as our closest support point in Ethereum. In any decrease from $1340, we will first be waiting for the support levels of $ 1280, and then $ 1150. If Ethereum continues to rise with the motivation of the update news, we have 1500 resistance, in fact, we can say that this resistance point is psychological resistance. After this resistance point is overcome, we can see the $ 1650 resistance and then the $ 1770 resistance.
Bitcoin Price Analysis
According to the last 24-hour data, the leading cryptocurrency, which has increased by 4.52%, is priced at $ 22 thousand 223. Here, the resistance point, which is closest to us, is immediately at the level of 22 thousand 400 dollars, that is, around the current price. If the $22,400 resistance is overcome, the $23,900 and $24,200 levels are the resistance points that we will encounter. If we look at the support points, $ 20 thousand 800 is the first support point, in case of any negative price movement from there, the levels of $ 19 thousand 600 and $ 18 thousand 500 appear as other support points.
