Ethereum fell more than 7% Friday morning following the Beacon Chain’s block restructuring event. This was in response to concerns about its planned merger. Ethereum is the bear that circles crypto and traditional markets. has been the brunt.
According to CoinMarketCap, Ethereum trades at $1770. This is a drop of 3.4% in the past 24 hours. This bearish trend is the latest sign of a very red week for the second largest cryptocurrency market capitalization.
Ethereum lost more than 16% over the past seven days. It fell from $2,077 Monday to as low at $1,731 Friday morning. However, it has recovered some and is currently at $1,770. This is 3.5% less than the previous day.
According to coinglass data, this drastic price shift led to liquidations of Ethereum worth $157.26 millions. These liquidations included more than 75% of long positions held by bullish crypto traders.
Multi-pronged factors are responsible for recent price action.
Most notable was however a recent issue related to Ethereum’s upcoming merge event , which is scheduled for August .
The merge will combine the proof of work (PoW), version of Ethereum with its Proof-of-stake counterpart (PoS). Technically, this counterpart is called the Beacon Chain. It has been in use since December 2020.
The PoW-based version of Ethereum will be completed. This makes Ethereum a PoS network, which brings with it many new benefits .
However, Wednesday’s block restructuring event occurred on the Beacon Chain. This is a ghost version of Ethereum that runs in parallel to the current Ethereum. This means that the Beacon Chain was temporarily forked and transactions were being processed on another parallel version.
According to block explorer BeaconScan, the network has been producing blocks continuously since then. A post-mortem is planned soon, according Core Ethereum developer Preston Van Loon.
