Ethereum: Breakthrough in the move to POS – Ether on the rise

Investing.com – At , we have been working for many years to make the blockchain move from the energy-intensive proof-of-work (PoW) procedure to the much more efficient proof-of-stake (PoS) procedure .

In 2015, founder Vitalik Buterin still believed that this work would be completed within a year. But years passed with no results, so many lost faith in a blockchain transformation and began looking for better alternatives.

In a blog post, however, it was announced that the Kiln-Testnet had made it possible to achieve the desired merger. During this process, PoW is replaced by PoS. The blog says this:

“Like Ethereum’s Mainnet, Kiln’s runtime layer was launched as PoW alongside a beacon chain with PoS. Then, on March 15, 2022, The Merge took place and Kiln is now running entirely under Proof -of-Stake!”

This is arguably the most important evidence that the Ether mainnet could be converted to PoS as early as this summer, as planned.

The energy costs of running the blockchain should then drop by around 99%, while the daily creation of new ether will decrease by 90%, from 12,000 to 1,280 ETH.

Ethereum Technical Benchmarks

Over the past four days, Ethereum has managed to recover from its recent lows below $2500. Yesterday, it even closed the day above the 50 percent Fibo retracement of $2,718, favoring further movement towards the 61.8 percent Fibo retracement of $2,849. This resistance is however reinforced by the descending trendline (red).

Only if this zone is successfully breached can one expect a test of the psychological mark of $3000 and the 78.6 percent Fibo retracement of $3036.

On the other side, the 50 percent Fibo retracement of $2718 offers immediate support, followed by the 38.2 percent Fibo retracement of $2587.

By Marco Oehrl

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