Ethereum Extends Rally on Back of New Merge Timeline Positivity

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Ethereum seems to be attracting renewed investor interest as the Merge nears. The clarity on the date for the Merge is fuelling gains for the largest altcoin that has reclaimed the $1500 levels. Ethereum seems to be pulling the battered crypto market up, and the $1 trillion market cap has already been reclaimed.

Ethereum rallies amid clarity on Merge timeline

Last week, Ethereum’s core developer, Tim Beiko, announced September 19 as the tentative date for the Merge. This process will see Ethereum transition from a proof-of-work consensus to a proof-of-stake mechanism. The transition is estimated to lower Ethereum’s energy demands by over 99%.

Since Ethereum developers made this announcement, more people have continued to buy Ethereum, and the price has jumped by around 22%, and it is currently trading at above $1500 with a market cap of $184 million. During the past 24 hours, Ether has gained nearly 5%, while Bitcoin has a slight dip of 0.5%.

The gains are also causing a positive trend for Lido Finance’s staked Ether (stETH). stETH is a token representing an equal amount of Ether staked on Lido Finance. The token is supposed to trade at parity with Ether’s price. However, after the collapse of Terra in May, stETH dropped to a 0.93 discount and has never recovered. However, it is gaining again, trading above $1500, almost reaching par with Ethereum.

As the Ethereum price surges, the number of staked tokens in the Eth 2.0 deposit contract is now 13,120,533 ETH, as seen on Etherscan. This ETH translates to roughly 10% of the entire token supply.

The Ethereum developers have one most test run to conduct before the actual Merge in September. The Goerli testnet is scheduled to go live next month. Before the recent timeline, the Merge was slated to happen in August, but the delay of the difficulty bomb changed the timelines.

Ether futures see massive liquidations

The cryptocurrency market has been on a downtrend for most of this year, and with a sentiment of “extreme fear,” many investors anticipated that the prices would continue to go lower. However, the recent recovery has caused massive liquidations on short positions.

Data from Coinglass shows that during the past 24 hours, $168 million worth of Ethereum shorts and $198 million worth of Ethereum longs have been liquidated. If the ongoing buying action continues, it is estimated that Ether will reach $1800. The current support sits at $1350.

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