All Eyes on Ethereum Merger! How Crypto Market Is Responding?

It’s Ethereum Merge Week, and much of the cryptocurrency world is focused on Ether. The price of bitcoin (BTC) appears to be linked to Tuesday’s latest inflation reading and subsequent interest rate actions by the US central bank, and the price of ether (ETH) appears to be linked to Merge expectations.

The merger of the proof-of-stake beacon chain and the proof-of-work Ethereum mainnet, formerly known as Ethereum 2.0, may take place as soon as Tuesday.

Above $1,650, Ethereum maintained a strong bid and began a new uptrend. The crucial $1,700 resistance area was broken by ETH. Over the weekend, Bitcoin remained firmly above its most recent $21,000 level as investors held out hope for encouraging U.S. inflation statistics the following week. At the time of writing, BTC has cleared the significant resistance level of $22,000.

Traders are Closely Monitoring ETH

The chief market analyst of AvaTrade, Naeem Aslam, thinks the cryptocurrency industry is doing well right now since Bitcoin has surpassed $22,000 and Ethereum is continuing to move toward the long-anticipated Merge.

He tweeted that the key focus would be the transition to Ethereum 2.0 and proof of stake for the second-largest blockchain. 

Currently, traders are closely monitoring the ETH price and keeping an eye on it. Popular on-chain data provider Santiment tweeted that while Ethereum Merge is likely to take place later this week on Sept. 15, the number of mentions of this long-awaited upgrade has dramatically increased. However, traders also think that ETH volatility is unavoidable.

In the meantime, Ethereum is attracting more mid-sized and large-sized investors. The number of addresses holding more than 100 ETH and more than 10,000 ETH has reportedly reached an 18-month high and a 4-month high, respectively, according to data aggregator Glassnode.

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