Ether underperforms despite the performance of the Merge

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The Ethereum merger is now complete, with the Ethereum network finally migrating to a proof-of-stake mechanism.

ETH, the native token of the Ethereum blockchain, has underperformed in the past 24 hours. The poor performance coincides with that of the broader cryptocurrency market.

The crypto market has lost less than 1% of its value in the last 24 hours, while the total market cap is still below $1 trillion. Bitcoin is down more than 1% so far and threatens to fall below the $20k threshold if bearish momentum continues.

However, ETH should rise as the Ethereum merger was successfully completed a few hours ago. The event was successfully concluded a few hours ago after the network hit “terminal total difficulty” earlier on Thursday.

The Merge has now changed how ETH tokens are created and how transactions are validated on the Ethereum blockchain.

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In the past, Ether tokens were generated through mining, which is an energy-consuming process where miners use huge amounts of computing power to solve difficult puzzles.

With the proof-of-stake mechanism, new ETH would be generated by individuals or entities allocating large amounts of pre-existing ETH tokens.

Main levels to watch

The ETH/USD 4 hour chart is bearish as Ether has underperformed in the past 24 hours. The technical indicators are bearish despite the Merge’s execution a few hours ago.

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ETHUSD Chart by TradingView

The MACD line is in the negative zone, indicating that the ETH market is currently bearish.

The 14-day relative strength index of 36 shows that ETH could enter oversold territory if momentum is maintained.

At time of printing, ETH is trading at $1,584 per coin. If the bearish trend continues, ETH may dip below the $1,513 support level before the end of the day.

However, with the Merge taking center stage in the crypto space, ETH could bounce back and rise higher later on. If that happens, ETH could surpass the $1,743 resistance level in the next few hours.

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