Ethereum Approaches $2,000 level Ahead of Network Merge Event
Ethereum (ETH) has resumed its bull run and in recent prices, action has also crossed the $2,000 price level. This is the first time that price has finally managed to claim that level. The last time when the ETH was at these levels was in May (around 2 and a half months ago).
Currently, the 2nd spot among top cryptocurrencies is secured by Ethereum (ETH) which is only behind Bitcoin (BTC). At the time of writing this, ETH is trading around $2014 which is an increase of 17% on weekly basis and an almost 7% increase on daily basis. In fact, the coin has almost doubled its value in the last month.
$152 Million Short Trades Liquidated
To give you some perspective, around $152 million worth of short trades in ETH were liquidated in just 1 day. Furthermore, the amount of staked ETH was standing at 13.2 million on the ETH 2.0 network. Once again, this is a new record for the staking metric as well.
Many people are wondering about the real catalyst behind the ETH price appreciation. If I have to define it in one word, that would be 'merger'!
Earlier, the transition towards the proof-of-stake mechanism of mining was completed successfully. Now all that's left is the final test before we can get the main net merger in the ETH.
The expected date for the merger event is expected on 15th o4 16th of September 2022.
What Is Testnet?
A testnet is a developmental (test) version of ETH through which developers can apply updates and launch new experiments. Once the test net phase is completed successfully, the changes are applied to the main network.
The main agenda of the upgrade is to move away from an energy-intensive mining process to a PoS mining process that will reduce energy consumption and improve network efficiency.
According to experts, this will reduce the energy consumption of ETH by almost 99%!