ETH Continues to Outperform Following Positive Merge News

ETH

The highly-anticipated ETH changeover from proof-of-works to proof-of-stake gets ever closer after the successful Goerli/Prater Testnet merger on Thursday, August 11, 2022.

According to developers at the Ethereum Foundation, the Ethereum merge of its proof-of-work Mainnet and the proof-of-stake Beacon chain will now happen between September 15 and 16, a couple of days earlier than initially anticipated.

After slumping over 80% from its November 10 high ($4865) to the June 18 low ($878), Ethereum has rallied back over the last month to a current level around $1,900 as investors bet on a successful switch of consensus. While a cluster of highs and lows up to $2,161 may slow further upside for ETH/USD, this zone is likely to be overcome before the final switch in mid-September.

The Ethereum/Bitcoin spread continues to rise and is testing channel resistance again today. The spread, a play on Ethereum with less overall crypto market risk, hit a three-month high this week and now looks set to trade at levels last seen at the start of the year.

However good this chart looks, there is likely to be some period of consolidation ahead of the merge and with volatility – measured via the 14-day ATR – near recent highs, traders should be aware that this spread can move sharply.

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