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Major cryptocurrencies have largely maintained sideway movements one day after the alarming inflation readings sent risk assets into a downward spiral. As of the time of writing, BTC manages to hold fast above the $20k threshold despite posting a marginal loss in the last 24 hours. A key bearish trend line with resistance near $20.5k is taking shape on the hourly chart. Furthermore, technical indicators suggest that BTC’s spot price is at major risk as it is currently knee-deep in a bearish zone with strong downside pressure near the $20.3k to $20.5k region.
With The Merge coming to a conclusion, ETH’s price, however, has barely budged in the last 24 hours. The exchange net position of ETH across major centralized exchanges registered a spike in inflow amid the transition toward a PoS consensus, hinting that high volatility is likely to ensue after the completion of The Merge. In the derivatives market, the funding rate for ETH perpetual contracts continues to fall, while a stark divergence is forming between the index price and the spot price, suggesting impending high volatility and possible arbitrage opportunities. In the options market, the implied volatility is pushed higher with purchases of weekly puts, but the current price support around $1,600 seems solid, or at least for the time being. Most major altcoins are largely in the red, with ATOM leading the downside correction on a 5% drop over a similar period.
A number of big Ethereum mining pools are expected to lend support to EthereumPoW (ETHW) following the successful completion of The Merge. According to tweets from EthereumPoW’s official account, major pools, such as F2Pool, Poolin, BTC.com, and Nanopool, have announced their support for ETHW mining, which will commence after a planned hard fork. The project team added that they had partnered with the backup mining pool EthwMine to facilitate mining operations after the hard fork.