Based on renewed momentum following those impending probable merging events, Ethereum (ETH) has rebounded to levels last seen in June. Santiment, a market insight provider, explained:
“Ethereum’s return above $1,500 for the first time since June 12th appears to be happening as the crowd has little belief in this rebound. Despite this, the average ETH return of 30-day traders has ballooned to +28%, the highest since August 2021.” The 30-day return for Ethereum traders has also reached an 11-month high, implying that the fresh impetus has boosted profits to levels last seen in August 2021.
Furthermore, ETH supply in profit increased by 56%. Glassnode, an on-chain insight provider, stated:
“In the last month, about 7.8 % of the circulating supply of ETH has transacted and changed hands on-chain.” The total ETH supply in profit has now risen to 56 %, up from 41 % prior to the recent price spike.”
According to CoinMarketCap, the second-largest cryptocurrency rose 3.8 % during intraday trade to R25.6K.
During a recent developer call, September 19 was identified as the most likely date for the merger.
As a result, these planned events have been making headlines, causing a bullish surge in the Ethereum market because the merger is expected to be the largest software upgrade in the ecosystem.
The merger is intended to convert the Ethereum network from the existing proof-of-work (PoS) framework to a proof-of-stake (PoS) consensus mechanism, which has remained elusive for a few years.
Because validators will stake Ether instead of solving a cryptographic puzzle, the PoS algorithm will allow for more cost-effective and environmentally friendly block confirmation.