The highly-anticipated Ethereum merger is one topic that all hardcore crypto aficionados are talking about.<\/p>\n
\u00a0 \u00a0 \u00a0 \u00a0 ETH currently trades below the $1.6K level
\n \u00a0 \u00a0 \u00a0 \u00a0 Ethereum price nosedives by 1.24% or trading at $1,570.76
\n \u00a0 \u00a0 \u00a0 \u00a0 ETH liquidations trigger price spike<\/p>\n
Investors are debating whether or not the price of Ethereum will reach $3,000 since it is on everyone\u2019s mind and a topic of conversation.<\/p>\n
When the Ethereum Blockchain and Beacon Chain fuse together on September 22, 2022, the Ethereum Blockchain will switch from Proof of Work mechanism to Proof of Stake.<\/p>\n
As a result of this shift, Ethereum miners will use significantly less computing energy. That will lessen the impact on the environment and soothe some of the concerns about cryptocurrency.<\/p>\n
Since hitting a record high price of $4,868 in November 2021, Ethereum has been slipping under a declining resistance line. Even as we went to press, ETH was trading below the $1.6k level and had experienced a new 2% fall.<\/p>\n\n
Source: CoinMarketCap<\/p>\n
According to CoinMarketCap,<\/a> ETH price has dipped by 9% in the last seven days, and trading at $1,550 as of this writing.<\/p>\n Ethereum Liquidations Trigger Price Spike<\/p>\n Traders\u2019 skepticism of Ethereum is high during a week of trading that has been extremely erratic. The majority of investors have sold short (shorted) across exchanges for the first time since June 2021.<\/p>\n Notably, the funding rate drastically decreased on August 28 and 29. In fact, on August 31, even as we went to press, the rate remained stable.<\/p>\n A negative number meant that long traders were compensated more than short traders for holding onto their positions.<\/p>\n However, traders shouldn\u2019t really give up because, in the past, such events have resulted in a price increase.<\/p>\n Price increases were common in these scenarios historically. A U-turn could be seen in the average financing rate, which stood barely above the $0 level, as it did at the time of writing.<\/p>\n Similar to how ETH might experience a price spike while the market is still too leveraged and liquidate a sizable volume of short positions. <\/p>\n More short positions are washed down as a result of these liquidations, which raise the price even higher.<\/p>\n Surge In Open Interest Validates ETH Popularity<\/p>\n However, not everyone believed that ETH would be able to get beyond the formidable $1.6k resistance barrier. As noted by renowned analyst Lark Davis, it actually coincided with the (potential) short-term decline.<\/p>\n Unquestionably a pessimistic narrative just before the Merge. Despite this, ETH\u2019s demand won\u2019t completely disappear overnight.<\/p>\n While Bitcoin investment goods witnessed a 7.16% decline to $17.4 billion in August, Ethereum investment products saw a gain of 2.36% to $6.81 billion in assets under management (AUM).<\/p>\n Furthermore, open interest is still surging in the options market, indicating that market participants are very interested in ETH.<\/p>\n\n BTC total market cap at $188 billion on the daily chart | Source: TradingView.com<\/a><\/p>\n Source: Nenad Novakovi\u0107 – Unsplash, Chart from TradingView.com<\/a><\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n The highly-anticipated Ethereum merger is one topic that all hardcore crypto aficionados are talking about.<\/p>\n \u00a0 \u00a0 \u00a0 \u00a0 ETH currently trades below the $1.6K level Investors are debating whether or not the price of Ethereum will reach $3,000 since it is on everyone\u2019s mind and a topic of conversation.<\/p>\n When the Ethereum Blockchain and Beacon Chain fuse together on September 22, 2022, the Ethereum Blockchain will switch from Proof of Work mechanism to Proof of Stake.<\/p>\n As a result of this shift, Ethereum miners will use significantly less computing energy. That will lessen the impact on the environment and soothe some of the concerns about cryptocurrency.<\/p>\n Since hitting a record high price of $4,868 in November 2021, Ethereum has been slipping under a declining resistance line. Even as we went to press, ETH was trading below the $1.6k level and had experienced a new 2% fall.<\/p>\n Source: CoinMarketCap<\/p>\n According to CoinMarketCap,<\/a> ETH price has dipped by 9% in the last seven days, and trading at $1,550 as of this writing.<\/p>\n Ethereum Liquidations Trigger Price Spike<\/p>\n Traders\u2019 skepticism of Ethereum is high during a week of trading that has been extremely erratic. The majority of investors have sold short (shorted) across exchanges for the first time since June 2021.<\/p>\n Notably, the funding rate drastically decreased on August 28 and 29. In fact, on August 31, even as we went to press, the rate remained stable.<\/p>\n A negative number meant that long traders were compensated more than short traders for holding onto their positions.<\/p>\n However, traders shouldn\u2019t really give up because, in the past, such events have resulted in a price increase.<\/p>\n Price increases were common in these scenarios historically. A U-turn could be seen in the average financing rate, which stood barely above the $0 level, as it did at the time of writing.<\/p>\n Similar to how ETH might experience a price spike while the market is still too leveraged and liquidate a sizable volume of short positions. <\/p>\n More short positions are washed down as a result of these liquidations, which raise the price even higher.<\/p>\n Surge In Open Interest Validates ETH Popularity<\/p>\n However, not everyone believed that ETH would be able to get beyond the formidable $1.6k resistance barrier. As noted by renowned analyst Lark Davis, it actually coincided with the (potential) short-term decline.<\/p>\n Unquestionably a pessimistic narrative just before the Merge. Despite this, ETH\u2019s demand won\u2019t completely disappear overnight.<\/p>\n While Bitcoin investment goods witnessed a 7.16% decline to $17.4 billion in August, Ethereum investment products saw a gain of 2.36% to $6.81 billion in assets under management (AUM).<\/p>\n Furthermore, open interest is still surging in the options market, indicating that market participants are very interested in ETH.<\/p>\n BTC total market cap at $188 billion on the daily chart | Source: TradingView.com<\/a><\/p>\n
\n \u00a0 \u00a0 \u00a0 \u00a0 Ethereum price nosedives by 1.24% or trading at $1,570.76
\n \u00a0 \u00a0 \u00a0 \u00a0 ETH liquidations trigger price spike<\/p>\n