Investing.com – Since 2015, the developers of e-commerce have been working tirelessly to transition the network to the much more efficient proof-of-stake (PoS) method. The Gray Glacier update, scheduled for June 29, 2022, shows just how necessary this step is.
This will prevent the level of difficulty for block mining from increasing for the sixth time already. If this trick were not used, the time required to create a block would increase, which would drastically reduce the number of possible transactions per second. But the network is already regularly hitting its technical limits, resulting in low transaction speeds and high transaction fees.
The transition to PoS will be done with what is called “The Merge”. According to founder Vitalik Buterin, this long-awaited event should take place this summer. The Gray Glacier update gives developers an additional 100 days during which the difficulty bomb will start ticking again.
While operators of nodes and crypto exchanges should prepare for the June 29 update, blockchain users have nothing to fear.
Binance announced as a preventive measure that transactions with ETH and ERC-20 tokens will be temporarily suspended on June 29, 2022 at 09:32 (UTC). The crypto-exchange thus wishes to ensure that there will be no difficulty in processing transactions during the update.
Ethereum price technical benchmarks
Ether may have rallied from its cycle low just below $900, but the cryptocurrency has so far failed to breach the resistance of the 23.6% Fibo retracement at 1150. dollars based on the closing price.
So expect a continuation of the recent consolidation of losses, as well as a further drop below the psychologically important $1000 mark.
Only a daily close above the 23.6 percent Fibo retracement would signal that the market is ready to allow a rally towards the 38.2 percent Fibo retracement of $1315.
Beyond that, the room for further gains towards the 50 percent Fibo retracement of $1449 would increase.
By Marco Oehrl