Ethereum briefly surpassed $1900 today after running the final test of the network upgrade, the merge.
The merge of Goerli’s testnet with Prater’s testnet was the final step before the network’s transition to Proof-of-Stake. After a successful launch, it seems increasingly likely that the merge can take place as planned in mid-September.
Some of the industry’s leading companies, such as stablecoin issuers Tether and Circle, have shown their support for Ethereum Proof-of-Stake amidst conversations about the possibility of a Proof-of-Work fork. Some community members have discussed forking the network because of the impact it will have on miners. Once the network shifts to consensus, miners will essentially become obsolete as validators staking out coins will verify transactions. As a result, some exchanges like Poloniex and Binance have shown interest in listing potential ETH fork tokens to meet demand.
The increased focus on Ethereum has also been reflected in ETH’s price action. The second-largest crypto-currency by market capitalization has gained about 12.5 percent in the past 24 hours, rising from a low of $1,705 to a high of $1,920. This rise has allowed ETH to break through a significant resistance area, suggesting that further gains could be on the horizon.
Ethereum broke out of an ascending triangle that had developed on its four-hour chart. The height of the Y-axis in the pattern suggests that Ethereum has entered a 24.3% uptrend. Further bullish momentum could help ETH validate the bullish outlook and reach $2,200.
It should be noted that Ethereum must continue to trade above $1,790 for the bullish thesis to prevail. If not, this could trigger a spike in profit taking that would send ETH back to $1,688.