High buying pressure on Ethereum hits above $1,300 on upcoming “merge”

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The expectation of the Ethereum network’s forthcoming switch to proof-of-stake is the reason for the altcoin’s greater price resiliency heading into the new week.

The network successfully completed one of the last tests prior to The Merge on Thursday, which at the time caused Ethereum to increase by roughly 13% over the course of a 24-hour period. At the time of writing, the top alternative currency was trading over $1.3K.

In a parallel operation to Ethereum’s existing proof-of-work mainnet, The Merge will switch the whole network over to a proof-of-stake version of itself.

A third straight day of gains for Bitcoin erased this week’s early losses.

The flagship Crypto rallied during the day and was recently trading at roughly $21.2K as a result of investors’ cautious buying pressure.

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What you should know

  • With inflation reaching a 40-year high on Wednesday and the ailing cryptocurrency lender Celsius Network declaring bankruptcy on the same day, market experts are still apprehensive about bitcoin’s rise in a market that is risk-averse.
  • Given the greater risk climate and reports of bankruptcy in the business, the near-term prognosis is still worrying.
  • According to recent price actions, the U.S. dollar index (DXY), a gauge of the value of the dollar in relation to a basket of international currencies, is getting close to records not reached since 2002, thus capping the gains of digital assets amid growing risk-off sentiments
  • The increase is caused by either the devaluation of other currencies like the euro, which recently hit a two-decade low of $1.0002 against the dollar or the growing demand for fixed-income assets denominated in USD as the U.S. Federal Reserve raises interest rates.
  • Further index gains may portend price falls for bitcoin because of the DXY’s primarily negative association with its price.