March 28, 2024

Ethereum price rises to $1,400 amid news about the launch of The Merge update

Ethereum price rose to $1,400 amid news of the launch of The Merge update

On the night from Saturday to Sunday, the price of ETH rose almost 15%, reaching $1,378 for the first time in a month. The exact reason for the jumpis unclear, but the release of news about the launch date of The Merge update may have been the catalyst.

Note that ETH’s rally helped boost the market as a whole, while Synthetix and Avalanche achieved double-digit gains, BTC added about 3.2%.

One of the factors contributing to the revivalmarket there was news about the upcoming release of The Merge update, as a result of which the network will switch to the Proof-of-Stake consensus mechanism. So, on Thursday, the Ethereum Foundation held its last conference, where the prospects for launching this update were discussed. Ethereum Foundation member Tim Beiko has proposed a tentative launch date – September 19th, just a few weeks away. However, the developer clarified that this date is only preliminary and may change.

Before The Merge is implemented on the main network, the Ethereum team must make one last test run on the Goerli network, which also takes time.

The Merge update aims to migrate the network fromProof-of-Work on Proof-of-Stake, which will reduce network power consumption by 99.95%. At the same time, The Merge is also seen as a bullish catalyst for ETH. When switching to Proof-of-Stake, the network will no longer pay miners, but will instead offer fees exclusively to validators. Since Ethereum is also burning some of its supply in the form of gas fees through EIP-1559, it is estimated that ETH could become a deflationary asset after the upgrade.

Despite the multi-month downturn that has hit ETH and other crypto assets this year, the market can still gauge the impact of the upgrades, as indicated by The Merge release narrative.