It is the event of the year and we do not know if it is much more and within the Ethereum environment it is the most outstanding event of its short history, or at least one of the most significant. It has been announced with much fanfare, even delaying dates that will be effective, if all goes well, between tomorrow and the day after.
We speak of course about The Fusion, The Merge in English that for the uninitiated can be a clear before and after in the life of the cryptographic behavior of the second asset in the market. We talked about that step from Proof of Work to Proof of Stake algorithm that will make Ethereum more scalable and better.
Since its drastic reduction, they say that up to 99% in the energy it consumes in its transactions, vital in these times when it is through the roof and with a clear reduction in the cost of operations, among other advantages that have been put on the table . As we say, a kind of second life, more and better that will result in its efficiency. But the big question is whether that will also raise its battered market price so far this year.
And it is that, if we go to its price graph and although the value clearly recovers positions from its lows in the middle of last June, with a 90% improvement, the truth is that its course continues to be bearish, one of the big headaches for investors. Thus, in the heat of La Fusion, it earns almost 5% in the week, but already with monthly cuts of 14.3%. In the semester, its falls exceed 33.3% and, so far this year, the truth is that the asset cut its price by 54.3%.
And it does not seem that everyone agrees that the implementation of this fundamental step necessarily implies a barrage of purchases in the market. Moreover, from Bitmex, its CEO Arthur Hayes, highlighted these days that, despite being optimistic about the impact on the price of the asset, in the short term, it could suffer if they make good that market maxim of “buy with the rumor and sell with the news” that has been produced since June.
And it is that there are precedents that this has happened with the great events of the market. This was the case with Bitcoin, which reached its maximum of $65,000 when Coinbase launched its IPO on the Nasdaq in April 2021. And then the falls were more than significant. Also with the support, in May of that year, of Elon Musk on Saturday Night Live, as cryptobriefing.com tells us, Dogecoin, which has never been the same in the market.
Regarding the evolution of the technical indicators elaborated by Estrategias de Inversión, it should be noted that its mode continues to be bearish with the cut of two points that leave the total score of just 1 out of the 10 to which the value can aspire. Thus, it only shows positive volatility or amplitude range that moves downward both in the medium and long term.
The rest is down, such as the downward trend on both sides for Ethereum, the total negative moment, both slow and fast, to which is added the volume of business that, in the medium and long term, is decreasing for the cryptoactive.
By the way, one of the changes of The Fusion is the disappearance, or, rather, the change of miners for stakers, those financial investors who use cryptocurrencies to generate profits while maintaining their property, for example, they update the chain of blocks, and get a reward for it.
Thus we have learned, according to Nansen data, there are five investors who own 64% of Ethereum before the arrival of The Fusion. Among the figures collected by cointelephaph, we find that just over 11% of the total Ether in circulation is staking, with 65% liquidity and 35% illiquidity. There are a total of 426,000 validators and about 80,000 depositors, according to figures provided by this blockchain analysis platform.