The Ethereum Merge is now completed, with the Ethereum network finally migrating to a proof of stake mechanism.
ETH, the native token of the Ethereum blockchain, has been underperforming over the last 24 hours. The poor performance coincides with that of the broader cryptocurrency market.
The crypto market has lost less than 1% of its value in the last 24 hours, with the total market cap still below the $1 trillion mark. Bitcoin is down by more than 1% so far today and risks dropping below the $20k threshold if the bearish momentum continues.
However, ETH should be rallying, considering the Ethereum Merge was successfully completed a few hours ago. The event was successfully completed a few hours ago after the network reached “terminal total difficulty” earlier on Thursday.
And we finalized!
Happy merge all. This is a big moment for the Ethereum ecosystem. Everyone who helped make the merge happen should feel very proud today.
— vitalik.eth (@VitalikButerin) September 15, 2022
The Merge has now changed how ETH tokens are created and how transactions on the Ethereum blockchain are validated.
In the past, Ether tokens were generated via mining, which is an energy-consuming process where miners direct huge amounts of computational power to solve difficult puzzles.
With the proof of stake mechanism, new ETH would be generated by individuals or entities dedicating large amounts of pre-existing ETH tokens.
Key levels to watch
The ETH/USD 4-hour chart is bearish as Ether has been underperforming over the past 24 hours. The technical indicators are bearish despite the execution of the Merge a few hours ago.
The MACD line is within the negative zone, indicating that the ETH market is bearish at the moment.
The 14-day relative strength index of 36 shows that ETH could enter the oversold region if the momentum is maintained.
At press time, ETH is trading at $1,584 per coin. If the bearish trend continues, ETH could slip below the $1,513 support level before the end of the day.
However, with the Merge taking centre stage in the crypto space, ETH could bounce back and rally higher later. If that happens, ETH could surpass the $1,743 resistance level over the next few hours.