The much-awaited Ethereum Merger went live some moments ago, where-in the Beacon Chain was merged with the Ethereum Mainnet. With this, the protocol underwent a complete transition from Proof-of-Work to Proof-of-Stake, disposing of the GPU miners from the network forever. While a major impact was assumed around the Merger, to one’s surprise, the ETH price remained unaltered.
As Coinpedia reported earlier that the possibility of the majority of Ethereum’s new nodes being held by a small group of emergers, the below data indicates the same. As per the data from Santiment, two addresses hold more than 46% of Ethereum’s PoS nodes which can be used to store data, process transactions & add new blocks to the chain.
The address after the Merge has validated nearly 188 & 105 blocks with an average share of 28.97 & 16.18 respectively. These addresses hold major dominance at the moment which was an expected outcome post the Merger. While still, market participants believe it may still be immature to analyze the performance of the network, and hence the upcoming week may be closely observed.
On the other hand, a huge number of traders believed the price of Ethereum would drop leading up to the merger, massive shorts were liquidated which raised the price to $1635 from $1565. Ethereum recorded the lowest ratio of shorts highest since March 2020, assuming the price could drop lower.
Additionally, the ETH funding rates have dropped lower for consecutive days, and hence a short squeeze to $1800 to $1900 may be extremely feasible.