• Ethereum price has dropped almost 17% in the past 24 hours, testing $1,200 support.
  • The Ropsten testnet merge was successful, according to Ethereum developer Tim Beiko.
  • Ethereum network is set to push back the difficulty bomb by 2.5 months, and the Sepolia and Goerli merge events on the testnet are approaching. 
  • Ethereum price continued to decline with the delay in difficulty bomb, ETH witnessed a double-digit drop. 

UPDATE: Ethereum price prediction is becoming a popular exercise among the crypto community as everybody tries to find the bottom of the current market plummet. ETH has been one of the worst performers during the past week, having lost more than 35% in the past seven days. At the time of this update (10.50 GMT), Ethereum is trading just above the $1,200 support, which has already been tested and has provided some interim footing. Ethereum had not traded at such a level since the huge rally of January 2021. The immense downside pressure the current risk-off mood is putting on the whole financial market landscape is exacerbated by crypto's own problems, including hugely leveraged markets, stablecoin collapses and scams like Do Kwon's Terra, but also by Ethereum's own issues. The second-biggest cryptocurrency is about to enter a new phase after the upcoming merge is completed, moving from proof-of-work to proof-of-stake, but the timing of it is still unknown. In the meantime, a DeFi variant of staked Ethereum (stETH), allegedly pegged to the original ETH tokens, is under enormous pressure, having slightly decoupled from Ethereum price. The question now is where will the cryptocurrency market bottom out? Looking at a Bitcoin price prediction might lead to a nearby answer.

Ethereum’s Ropsten testnet was a milestone event and a significant success for the altcoin. Developers noted 99% participation and proposal rates after fixing the issues that came up during the test. Analysts continue to remain bearish on Ethereum price. 

Ethereum difficulty bomb delayed by 2.5 months

The team of Ethereum developers has decided to delay the difficulty bomb by 2.5 months, which has led to suspicion that the merge will fail to occur in August 2022. The news of a possible delay has added downside pressure to Ethereum, and the altcoin price has plummeted. 

Ethereum price is currently sitting below the 50-day EMA, and analysts predict a further decline in the largest altcoin. The Ropsten testnet, considered a key milestone for Ethereum, was a major success. There was 99% participation and the proposal rate improved after configuring fixes and reboots. 

Core developers identified issues and resolved them through the process. No red flags or causes of concern were identified, significant enough to announce a delay in the arrival of the merge on the mainnet. 

Ethereum developer Tim Beiko noted that the Sepolia merge and Goerli merge are lined up in three weeks and six weeks, respectively. The difficulty bomb is a special code that has been pre-programmed in the Ethereum blockchain. It increases the computing difficulty of mining ETH and makes it impossible to do so, pushing a transition from proof-of-work to proof-of-stake. 

Since the difficulty bomb is being delayed, the community is under the impression that the merge will be delayed. This has fueled a bullish sentiment among Ethereum holders. 

Ethereum price could continue to decline

Bob Mason, a leading crypto analyst, argues that the Ethereum price needs to sustain above major support level at $1,460; barring an extended sell-off, a decline to sub-$1,400 would confirm a downtrend. 

Ethereum’s second major support level is $1,390, and the analyst retains a bearish outlook on the altcoin. 

@bitbitcrypto, pseudonymous crypto analysts believe Ethereum price could continue bleeding. 

FXStreet analysts have identified two Ethereum price points that traders need to watch out for. For more information, watch this video. 

 

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