Following the Beacon Chain’s reorg, Ethereum has dropped by about 8% over concerns for the Merge. Amid the bearish crypto cycle we are currently in, Ethereum seems to be taking it the most.
Ethereum is at a -7.82% loss today as it holds a price of 1,725 at the time of writing. Down 7.9% in the past 24 hours. The price shift comes as the volume has increased by 11% in the past 24 hours. This is likely due to a $157M liquidations, 75% of which were from long position holders.
The price drop may also be due to a hang up related to Ethereum’s Merge, which is set to hit August. The Merge is the upgrade to Ethereum which will make it into a proof of stake system. It will be a part of the Beacon Block chain.
Beacon is a sort of ghost version of Ethereum which will run parallel to the current Ethereum. However, a reorganization event in which the Beacon Chain was forked, causing transactions to be processed on another Beacon parallel.
Koppelmann had this to say in a tweet: “The Ethereum beacon chain experienced a 7-block deep reorg ~2.5h ago. This shows that the current attestation strategy of nodes should be reconsidered to hopefully result in a more stable chain! (proposals already exist).”
However, since then, the network has been producing blocks unhindered.