- Ethereum Merge could happen by summer 2022, reveals co-founder Vitalik Buterin at the Web3.0 ETH Developer Summit in Shanghai.
- Buterin believes that the ETH merger on the Ropsten testnet will mark a key milestone in the development of the altcoin.
- Technical analysts believe that Ethereum price could reach $2,800 as a potential bearish retest before resuming its downward trend.
Ethereum Merge is one of the most anticipated events in the ETH community. The merger has been delayed several times over the past year, and the final date for the key event has arrived, according to co-founder Vitalik Buterin.
Ethereum Merge will arrive in summer 2022
Ethereum Merge is seen as a milestone for the altcoin as it transitions from proof-of-work to proof-of-stake, after a long wait. After several delays over the past year, Vitalik Buterin, the co-founder of Ethereum, has announced the date for “The Merge”. At a Web 3.0 ETH Developer Summit, he told attendees that “The Merge” is the biggest event on the altcoin development roadmap in 2022. Ethereum developers are working on proof-of-stake for almost seven years now and all the work will be done in the summer of 2022.
Also Read: Can Ethereum Price Hold as Vitalik Buterin Sells 30,000 ETH?
Preston Van Loon, a lead developer of Ethereum, announced that “The Merge” would debut as early as August this year during a speech before the Permissionless panel.
Ropsten testnet merges on June 8!
The Ropsten merger is an important test step towards the Ethereum mainnet merger later this year. https://t.co/X7eLIMA72g
— prestonvanloon.eth @Permissionless (@preston_vanloon) May 18, 2022
As far as we know, if all goes according to plan, August makes sense. If we don’t have to move [the difficulty bomb]let’s do it as soon as possible.
Vitalik Buterin acknowledged the announcement and said it depends on issues that arise during development; if all goes according to plan, summer 2022 is the perfect time for the Ethereum mainnet to migrate from proof-of-work to proof-of-stake. Buterin was quoted as saying,
If all goes well, the merger is expected to occur this summer. If there is no problem, the merger will take place in August. If there are any problems, September is possible and October is possible. Ethereum will finally become a Proof-of-Stake network.
Parithosh Jayanthi from the DevOps team at the Ethereum Foundation merged the pull request on GitHub today, May 20, 2022, and this code is the one that will be implemented during the Ethereum merge.
Anthony Sassano, co-founder of an ETH research tool, recently commented on the Ethereum merger. He said,
I think there will be three public testnets during the transition and if all goes well the mainnet will be scheduled soon after.
Sassano’s estimate was that Ethereum Merge could happen as early as August 2022 and Buterin’s announcement made summer 2022 the official timeline.
Ethereum Merge Progress Made So Far
The foundation of Ethereum Merge was laid by the “Beacon Chain”. Phase 0 on Technical Roadmaps, a chain that introduced staking to the network and serves as the consensus layer for the Ethereum blockchain.
Vitalik Buterin has released a plausible roadmap for the future of Ethereum, find it below.
The Beacon Chain went live on December 1, 2020, enabling the entire network to become more energy efficient and enabling staking. Since its launch, the Proof-of-Stake Beacon chain has been running alongside the Ethereum mainnet and remains castrated. The Ethereum merger would combine the mainnet with the Beacon chain, changing the consensus mechanism to PoS. The launch of the Beacon channel was followed by three key events.
- Berlin Upgrade (April 2021): Optimized gas cost and increased support for multiple transaction types
- London hard fork (August 2021): Introduction of EIP1559, base fee burning in transactions
- Altair Hard Fork (October 2021): Planned Beacon Chain Update
After these milestones in the history of Ethereum development, the altcoin network moved closer to “The Merge”. The initial announcement from the development team set June 2022 as the date for this event to go live on the Ethereum mainnet. It was later pushed back to August 2022, however, after issues that arose during development and the testing phase were cited.
Justin Drake, a researcher at the Ethereum Foundation, has an optimistic view of “The Merge”. Drake recently published a chart that offers insight into the dominance of proof-of-stake by Ethereum clients, software that allows nodes to read blocks on the altcoin’s blockchain.
Ethereum PoS client dominance
Ethereum, the key to the future of PoS
Ethereum’s transition to proof-of-stake is expected to be a watershed moment for ETH holders and the community for the following key reasons:
- Increased energy efficiency: The Ethereum blockchain has been constantly criticized for its high energy consumption. Changing the consensus mechanism reduces hardware requirements and barriers to entry would reduce power consumption and increase network efficiency of the altcoin.
- Reduce the risk of centralization: The transition to proof-of-stake would lead to a higher number of modes and distribution, securing the altcoin network with its low power consumption. 51% attack becomes exponentially more expensive and In the event of a hack, the community could resort to social recovery.
After the success of the Ethereum merger, stakeholders will be responsible for validating transactions on the altcoin mainnet. Mining will no longer be necessary, so miners will likely invest their earnings in staking and become part of Ethereum’s Proof-of-Stake ecosystem. The merger is a set of upgrades that would make the altcoin faster and cheaper to use. Currently, the Ethereum network suffers from slow transaction times and high costs. A $1 token swap on Uniswap could cost a user $50 in transaction fees if the Ethereum network is hit with congestion.
While “The Merge” won’t directly resolve high gas prices, it will set the stage for a set of upgrades that will ultimately lower costs on the altcoin blockchain. After the event, developers will be able to execute smart contracts on the mainnet using the new consensus mechanism, PoS. The Ethereum community and investors will be able to withdraw ETH staked on the staking contract. This feature will not go live immediately after the event. Once the post-merger cleanup upgrade is successful, investors will be able to begin withdrawals. Currently, there is no fixed schedule for the same.
The Ethereum Triple Halving narrative comes into play
The Ethereum Triple Halving narrative predicts a massive rise in the price of ETH as the altcoin approaches “The Merge”. The narrative was first offered by Nikhil Shamapant, an Ethereum researcher and analyst. Shamapant argued that Ethereum’s transition from PoW to PoS could act as a catalyst, similar to Bitcoin’s halving, and trigger a breakout in the altcoin.
The London hard fork and its implementation of EIP-1559 was a key stepping stone in the ETH Triple Halving narrative. With the successful implementation of burning, Ethereum is now moving closer to a transition to PoS on its mainnet, and Shamapant believes this will lead to a 90% reduction in ETH issuance.
This halving is equivalent to three consecutive Bitcoin halving events, which is why it is called the Triple Halving. A reduction in the supply of a cryptocurrency historically results in a shortage, driving up the prices of the asset.
According to Shamapant’s account, the successful merger in the summer of 2022 will therefore put Ethereum Triple Halving into play and fuel a massive rally in ETH.
Ethereum Merger Date Reveal Triggers ETH Price Rise to $2,800
@AltcoinSherpa, a leading technical analyst, says Ethereum’s market structure continues to remain bearish. However, he wouldn’t be surprised to see something like a medium-term bearish retest as the altcoin surges to $2,800 and ETH heads into the Ethereum meltdown. The analyst considers it ideal to wait for Ethereum lows to be exploited again before entering a trade. @AltcoinSherpa therefore has a bullish outlook on Ethereum in the short term but predicts further decline in altcoin prices in the long term.
ETH/USD Price Chart
Netcost-Security analysts have assessed Ethereum’s price trend and capped the upside of the altcoin at $2,200 if the altcoin fails to break out of its downtrend. However, Ethereum enjoys a strong correlation with Bitcoin, and some analysts are predicting a rally for ETH, with upside capped at $2,500 if BTC recovers above $33,000.
To learn more about the technical outlook for Ethereum, watch this video: