Ethereum Retests $1,500 Region, Shadow Fork Deployed Ahead Of Merge

Ethereum

Over the past 24 hours, the market has seen gains. Ethereum, increased by 8.13% while the market king, Bitcoin, has increased by 3.25%. The performance of the remaining top cryptocurrencies has been comparable to that of the two majors.

With a price range of $1,362.95 to $1,602.61, ETH/USD has experienced significant volatility over the past 24 hours. While the overall market capitalization trades around $181.33 billion, trading volume has decreased by 14.18% to reach $17.13 billion, giving the market a dominance of 18.3%.

Ethereum Suffer Setback Ahead Of Merge

Even after the recent confirmation of the “Ethereum merge” shift to a proof-of-stake (PoS) consensus network in September, Ether (ETH) is down 11.5% in the last seven days.

Tim Beiko, an Ethereum core developer, suggested Sept. 19 as a possible goal date at the Ethereum core developers’ conference call on July 14.

Years have passed since the move away from energy-intensive mining, and a date has not yet been set for the shift to scalability using sharding technology, which allows for parallel processing. However, other analysts predict that the network’s monetary policy will increase Ether’s value.

ETH/USD trades at $1,600. Source: TradingView

The “supply shock” effect was noted by Ethereum researcher Vivek Raman. According to the analyst, the “merge” will “reduce ETH’s total supply by 90% ,” even if there is now no reduction in transaction fees.

Related reading | TA: Ethereum Recovery Faces Major Hurdle, Risk of Fresh Decline Exits

The recent dramatic decrease in Ether’s price could be largely attributed to regulatory uncertainty. Yuga Labs is the target of a class-action lawsuit for “inappropriately inducing” the public to purchase nonfungible tokens (NFTs) and the ApeCoin (APE) token. The law firm further asserts that Yuga Labs “inflate the price” of the BAYC NFTs and the APE tokens by using celebrity endorsers and promoters.

Shadow Fork Deployed

Another minor but significant step has been made by Ethereum toward the merger and the blockchain’s much-anticipated switch to proof of stake.

The 10th shadow split of Ethereum, which was supposed to go live today, went online early yesterday, more than 26 hours ahead of time. Shadow forks are a focused test run of the merge’s components; they simulate making one or two particular modifications to the blockchain that will take place in the future.

This is distinct from complete testnet hard forks, like the Sepolia testnet that happened earlier this month. The merging, which switches the whole Ethereum mainnet over to a test environment network, is fully rehearsed on testnets.

Related reading | Why Ethereum Classic (ETC) Leads Crypto Market In Latest Week With 16% Surge

This week’s shadow fork served as a rehearsal run for the releases that will take place on Ethereum’s last testnet, Goerli, on August 11. This test will be the third and last of its kind needed before the merge is prepared to go into effect.

Featured image from iStock Photo, charts from TradingView.com

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