The much-anticipated Ethereum merger went live moments ago, where-beacon was merged with the Ethereum mainnet in the chain. With this, the protocol made a complete transition from proof-of-work to proof-of-stake, disposing of GPU miners from the network forever. While a major impact was assumed around the merger, to one’s surprise, the price of ETH remained unchanged.
As previously reported by Coinpedia, a small group of new nodes most likely to emerge on Ethereum, the data below seems to point to the same. According to data from Santiment, the two addresses account for more than 46% of Ethereum’s PoS nodes, which can be used to store data, process transactions and add new blocks to the chain.
The address after the Merge has validated nearly 188 & 105 blocks with an average share of 28.97 & 16.18 respectively. These addresses hold major dominance at the moment which was an expected outcome post the Merger. While still, market participants believe it may still be immature to analyze the performance of the network, and hence the upcoming week may be closely observed.
On the other hand, a large number of traders believed that the price of Ethereum would drop due to the merger, leading to a massive liquidation of shorts, which pushed the price from $1565 to $1635. Ethereum recorded the highest ratio of shorts to shorts since March 2020, believing that the price could turn lower.
Additionally, the ETH funding rates have dropped lower for consecutive days, and hence a short squeeze to $1800 to $1900 may be extremely feasible.
