Ethereum Unfazed by Proof-of-Stake Test & ApeCoin’s Stay on the Network

  • ETHUSD
    (${instrument.percentChange}%)

Transition to Proof-of-Stake

The Ethereum network intends to transition from the current energy-intensive Proof-of-Work mining model, to the more sustainable and eco-friendly Proof-of-Stake method, a process titled The Merge. [1]

Working towards this goal, tests have been going on for a while now on the Beacon Chain. Ethereum's Mainnet runs on the old method and when testing is done, it will merge with that chain into the Proof-of-Stake model, although no specific date has yet been set.

Today, the oldest proof-of-work testnet, the Ropsten network [3] successfully merged, as per Bitfly's tweet that was retweeted by Ethereum's co-founder, Vitalik Buterin. [3]

ApeCoin Stays on Ethereum

Earlier in the month, Proposal AIP-41 to keep ApeCoin within the Ethereum ecosystem was put to a vote, for a period that ended today. 7.1 million tokens were cast, with 53.62% in favor of staying within the network instead of migrating. [4]

ETH/USD Analysis

The popular altcoin has managed to stabilize after May's plunge and the broader crypto rout, but with being able to post any meaningful recovery and was unaffected by the recent news described above.

As such, there is still increased risk for a break below 1,699, although a larger decline that would threaten 1,397 will need a strong catalyst.

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On the other hand, ETH/USD has managed to defend the aforementioned levels and it may find the opportunity to push again towards the 2K market, but it does not inspire confidence for taking it out and challenging the EMA200 (2,162-72).

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 09 Jun 2022 https://ethereum.org/en/upgrades/merge/

3

Retrieved 09 Jun 2022 https://twitter.com/etherchain_org/status/1534568254508875778

4

Retrieved 29 Sep 2022 https://snapshot.org/#/apecoin.eth/proposal/0x367eecaffc20976a4f913154eceb61279793b06ac0ad93ab948d2d3b207ff860

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