Ethereum customers issued a critical warning almost a week before the merge date. Is Ethereum merge optimism over? Experts answer…
Ethereum developer warns of significant risks
Marius Van Der Wijden, an Ethereum developer working on Go Ethereum, said in a tweet on August 30 that it is not safe to run multiple consensus layers (CLs) on a single execution layer (EL) node operator. Users can currently run multiple validators on a single consensus layer. However, running multiple consensus layers in one execution layer introduces bugs. The combination may work for a while, according to Wijden. But the chance of it eventually crashing is greater than the process.
Just a small reminder: Running multiple beacon nodes of f of one execution layer (geth) node is unsafe. You can run multiple validators off of a single beacon node <-> EL node combo, but not multiple CL off of 1 EL node.
(This might work for a while until it horrible crashes)— MariusVanDerWijden (@vdWijden) August 29, 2022
This is because different consensus layer node operators will share different states of detail with the execution layer and cause execution conflicts. Therefore, it is very important to have a 1:1 relationship between the execution layer and the consensus layer.
ETH price rises in anticipation of merge
After Merge, ETH will be deflationary. Therefore, the excitement in the community is increasing. The positive sentiment is causing the ETH price to rise even higher. After a strong decline over the weekend, the ETH price has once again increased by around 6%. Recently, there have been volatile price fluctuations for ETH ahead of the much anticipated update on September 15. ETH price is already down 25% from the $2,000 peak in August.
Ethereum price came under heavy selling pressure after Fed Chairman Jerome Powell’s hawkish statements last weekend. Speaking to Bloomberg, Katie Stockton, co-founder of Fairlead Strategies, said:
Ethereum (ETH) has dropped below initial support from its 50-day moving average and short-term momentum is now negative, increasing downside risk. The weekly stochastic is down for the first time since April, suggesting a retest of support at around $1000 is likely in the coming days.
Is Ethereum merge optimism over?
After a major slump in Q2, ETH price regained momentum amid the optimism surrounding the merge upgrade. But the latest selling pressure shows that global macro fears are taking over the merge optimism. In a note to investors, Bitfinex analysts said:
Ethereum’s decline ahead of the upcoming merge is also notable as bearish sentiment seems to dominate all so-called risk assets. The volatility, which has become a characteristic feature of the cryptocurrency market, shows no signs of diminishing.
The first Ethereum hard fork will take place on September 6th. This will increase the chances of merge. If things go according to plan, EHT will once again have the opportunity to rally. Therefore, analysts are waiting for a rally to $2,200.
🔥 – #Ethereum fork happening on the 6th of September, which increases the odds of the Merge to be a success -> sentiment changing.
The scenario still going as planned, I don't want it to drop sub $1,350.
If strength continues -> $2,200 next. pic.twitter.com/Aw2KyNPUKW
— Michaël van de Poppe (@CryptoMichNL) August 30, 2022
