Ethereum price risks a drop below $1K if these key price metrics turn bearish

Ether (ETH) price is down 37.5% in the last seven days and recent news reported that developers decided to postpone the network’s migration to a proof-of-stake (PoS) consensus. This upgrade is expected to end the dependency on proof-of-work (PoW) mining and the Merge scalability solution that has been pursued for the past six years.

Competing smart contracts like BNB, Cardano (ADA) and Solana (SOL) outperformed Ether by 13% to 17% since June 8 even though there was a market-wide correction in the cryptocurrency sector. This suggests that the Ethereum network’s issues also weighed on the ETH price.

The “difficulty bomb,” feature was added to the code in 2016 as plans for the new consensus mechanism (formerly Eth2) were being formed. At the peak of the so-called “DeFi summer,” Ethereum’s average transaction costs surpassed $65, which was frustrating for even the most fervent users. This is precisely why the Merge plays such an important part in investors’ eyes and, consequently, Ether price.

Options traders remain extremely risk-averse

Traders should look at Ether’s derivatives markets data to understand how whales and market makers are positioned. The 25% delta skew is a telling…

Read more at cointelegraph.com

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