Ethereum Tests $2,000 before Retreating for the First Time since May 31

blockchain.news:

Ether rose 2% to $2,030.50, topping $2,000 for the first time since May 31, as investors fretted about its upcoming software upgrade from proof-of-work (PoW) to proof-of-stake (PoS) consensus mechanism in September (called Merge) with a positive sentiment.

Ethereum co-founder Vitalik Buterin hinted that the much-anticipated merger could happen around September 15.

Once the merger rolls out, the PoS algorithm will confirm blocks are more economical and environmentally friendly, as validators will be betting on ether rather than solving cryptographic puzzles.

Ether has gained more than 18% over the past seven days, thanks to the U.S. jobs report on August 5 and Wednesday's drop in inflation.

Ether was trading at $2,006.55 at the time of writing, according to <dfn data-info=«CoinMarketCap is the world» s most-referenced price-tracking website for="" cryptoassets in the rapidly growing cryptocurrency space. its>Coinmarketcap.

However, ETH/USD appeared to be in a consolidation mode after breaching the $2,000 mark for the first time since May earlier in the weekend.

The price level is expected to be an important zone of resistance. If the daily close's above $2,027, then $2,400 is the next target. A retest of the $1,925 level could happen.

Source: Glassnode

According to a note last Friday by Genesis strategists Noelle Acheson and Willis Croft: «Ethereum is currently suffering from new fundamentals (merged token economics), speculative factors (ETH PoW fork, about this still unknown), and the general macro sentiment boost.»

Ethereum's open interest hit a 4-month high. Open interest in ether futures surged above $8 billion. Hit an all-time high.

Joe Hickey, global head of trading at BlockFi, noted last Friday that we are