Ethereum’s developers have spent several years working to transition the network from the Proof of Work (PoW) model to Proof of Stake (PoS). The wait for the transition looks to finally be over, with the “Merge” event expected to begin tomorrow, September 6th.
Ethereum Nears Merge Genesis
According to Ethereum’s timeline, the “Bellatrix” upgrade will go live on the Beacon Chain tomorrow, marking the first phase of the Merge. The Merge is an event in which Ethereum’s current PoW chain will be combined with its PoS Beacon chain.
The next phase of the merge is then set to occur between September 10th and 20th. During this phase, the Paris upgrade will shift the Ethereum mainnet to PoS after a final terminal total difficulty (TTD) value of “58750000000000000000000” has been reached.
Investors are already showing their belief that the Merge will positively impact the price of ETH. In a record day, nearly 100,000 ETH was staked over the course of a single 24 hour period, pushing the total amount of Ether staked to 14.245 million ETH.
A Pre-Merge Rally?
Ethereum (ETH) has been outperforming Bitcoin (BTC) over the last few weeks, and that trend is expected to continue as the Merge approaches. The Ether could even start a pre-merge rally, having exited the falling wedge pattern noted last week.
The break out from the wedge pattern could see ETH push above $1,700. Should ETH rally to this level, it would add conviction to the bullish momentum heading into the Merge itself. ETH is trading at $1,565 at the time of writing, having gained 1% in value over the last 24 hours.
The 24 hour price chart for Ethereum (ETH). Source: CoinMarketCap
On the Flipside
- Some experts have expressed concerns about the possible volatility that is expected to ensue due to the release of approximately $3 billion worth of Mt.Gox Bitcoins that will take place at around the same time as the Ethereum Merge.
Why You Should Care
Ethereum’s transition to PoS is the single biggest event in the crypto industry to date, and is expected to change the trajectory of the ETH, and the broader crypto community.
For the full Merge timeline, read:
The Merge Is Coming: Ethereum Foundation Announces Date for the Mainnet Upgrade
For ETH holders looking for information on what to do during the Merge, read:
What Will Happen to Your ETH after the Merge?