⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

The bullish momentum continues for Ethereum as the Merge begins

Holding On to Our ETH Buy Signal, As Ethereum Merge Gets Underway Today

Posted Tuesday, September 13, 2022 by
Skerdian Meta • 2 min read

There’s a big shift coming to the Ethereum network this week, which will affect the whole crypto market. That’s the Merge that Etheruem is going through starting from today, which is one of the biggest shifts the crypto world has ever seen. The Merge refers to the transition of the Ethereum network from the proof-of-work (PoW) mining system to the proof-of-stake (PoS) one. Ether is the second-biggest cryptocurrency by market cap, coming in behind Bitcoin. As of August, 80% of the world’s NFTs are built on the Ethereum network, so this will affect the whole crypto industry.

We decided to open a buy Ethereum signal last week, as the price went through a slight retreat lower.  The 50 SMA (yellow) turned into support and held the decline, while the candlestick closed as a pin, which is a bullish reversing signal. Now the price is bullish once again as the crypto market sentiment improves.

Ethereum H4 Chart – Bouncing Off the 50 SMA

TradingView Chart

Ethereum forming a bullish reversing pattern after the slight retreat 

One of the reasons for the buy Ethereum signal was the Merge which was scheduled to start today. Ethereum is set to be deflationary after the Merge due to a drop in ETH issuance and the EIP 1559 burning mechanism. Glassnode data reveals Ethereum (ETH) issuance will increase after the Merge only when more validators enter the pool. Therefore, Ethereum’s deflationary or inflationary price will vastly depend on validators.

It’s true that Ethereum saw a further decline in total value locked a few days to the highly anticipated “Merge” due to a continuous drop in the amount of liquidity poured into decentralized finance (DeFi). Although, Ethereum has been the go-to blockchain for thousands of developers and millions of dApp users ever since decentralized finance was coined by a group of entrepreneurs and Ethereum developers in 2018 and with the Merge this will keep increasing.

Ethereum ETH Live Chart

ETH/USD
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments