The Ethereum community and the entire crypto space will soon witness the merge launch, the long-awaited upgrade. This is the transition from PoW to PoS consensus mechanism for the Ethereum mainnet. It has become one of the most publicized events in the industry as many people are offering different opinions about it.
Over the past few weeks, the sentiment of the merge has driven up the price of Ether. Despite some minor falls in the broader crypto market, ETH remained one of the tokens with more impressive performance.
The sudden drop in the price of Ethereum is causing many concerns for many participants. Many are confused about the turning point in Ether’s momentum as the merge is at hand.
In addition, other preparatory activities and upgrades that will initiate the merge are almost complete. Therefore, investors are expecting a further increase in the price of ETH.
Impact of Bellatrix Upgrade on the Ethereum Network
The ETH network recently saw a Bellatrix upgrade. The upgrade aims to enable Ethereum validators to create beacon blocks. One of the completed blocks will contain the code for the merge. The Bellatrix upgrade serves as one of the upgrades that initiates the merge.
A report on the process indicated that Ethereum saw a drop in its network participation rate following the Bellatrix upgrade. In addition, there has also been an increase in the missed blocks in the network.
Records showed that the rate of missed blocks increased by 1700% after the upgrade. With only a week left for the merge, the Ethereum developer team is expected to watch the situation closely.
Some professionals offered reasons for the reduction in advanced nodes. He mentioned that it could be the failure of some nodes to upgrade their customers. He added that participation will increase when validators once again upgrade their nodes to sync with the Bellatrix upgrade.
Possible reasons for Ethereum fall
People are giving different reasons for the drop in the price of Ethereum. Certain factors are also at play in favor of the broader crypto market. The price of Ethereum is declining due to the influence of macroeconomic factors.
The dollar rallying wave is throwing almost the entire crypto market and even the general market out of balance. At the same time, the Fed’s aggressive stance on tackling inflation is expected to continue.
A partner at Cinneamhain Ventures and Crypto Influencer, Adam Cochranlinked the decline to Ava’s stance on the Ethereum markets. Influencers pointed out that Away’s halved Ethereum markets triggered other platforms such as Instadap to open SETH/ETH pools.
Featured image from Pixabay, chart from TradingView.com
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