Ethereum slips 6% amid growing merger concerns

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Ethereum (ETH) fell 6.78% in the past 24 hours, falling below $1,600.

The second largest cryptocurrency with a market cap of $192.73 billion is now changing hands at around $1,575 each.

The current trading price is down 67% from its all-time high of $4,891 recorded in November 2021, according to data from CoinMarketCap.

The bearish price movement of Ethereum can be attributed to growing concerns about the future of Ethereum and its miners after fusion. The event should occur in September.

“There are a lot of potential risks with the ETH merger,” tweeted Evgeny Gaevoy, CEO of Wintermute. “Just because people have been working on it for years doesn’t mean it’s going to work perfectly.”

Currently, Ethereum operates the same consensus model as Bitcoin, which forces so-called miners to run non-stop in order to verify transactions and maintain network security. The merge event will change from this consensus model to a no doubt model greener version called proof of stake.

The change also means that miners will no longer maintain the network, but validators. Instead of buying machine farms to validate transactions, users can stake 32 Ethereum to become a validator on the upgraded network. Validators earn a return for their work, but can also lose money if they behave fraudulently.

It is this obsolescence of miners that makes some mining groups move.

Antpool, the cryptocurrency mining platform backed by hardware maker Bitmain has invested $10 million in Ethereum Classicthe “Original Ethereum”, to protect their business interests after the merger.

Prominent Chinese crypto-miner, ChandlerGuo presented a plan to fork the current Ethereum to continue functioning as blockchain proof.

Bitcoin slides alongside Ethereum

After Ethereum, the main cryptocurrency, Bitcoin (BTC), is trading on the bearish side, losing 2.46% of its value in the past 24 hours.

Bitcoin is trading for around $22,767, down 66.73% from its all-time highs of $68,789 recorded in November 2021, according to data from CoinMarketCap.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.

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