Since Ethereum transitioned to the new PoS algorithm, the market has seen two contradictory trends. Fundamental analysis shows the market is falling, while technical analysis predicts it will be rising. We take a look at these two trends in this article to see what’s going on.
At the moment, we see a severe fall in the market to the level of about $18k per bitcoin. The market drop happened yesterday:
There are two main reasons for this:
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Both of these factors stimulate ETH price fall, which negatively affects the whole cryptocurrency market.
More and more evidence is being found of Ethereum centralization threatening the stability of validators. Yesterday, the BitMex exchange added to these allegations by posting statistics from mevboost.org.
According to that data, 75% of blocks are collected from transactions picked up in the meme pool by a centralized service called Flashbots. This robot helps miners, and now validators, extract Miner Extractable Value (MEV), the extra profit from some sort of transaction ordering.
The race for MEV leads to unprofitable exchange rates for DEX exchanges, destabilizing the consensus. In essence, miners deliberately split the network to build up a longer chain to wire “their” blocks ahead of competitors.
Ethereum blockchain consensus type conversion has not solved the MEV problem, and the dominance of the Flashbots service represents a single point of failure for the entire network.
Previously, analysts from Santiment proved that 46.15% of nodes are controlled by just two addresses. All this makes experts critically rethink Ethereum’s reliability, in which PoS does not solve its most important problems (and in the worst case, on the contrary — only strengthens them).
In contrast to the fundamental analysis, which shows the factors that dump the cryptocurrency market today, there is also an intriguing technical analysis pattern that promises a rapid growth of Bitcoin (as well as the entire crypto market in general).
A trader nicknamed Crypto Rover saw the so-called Golden Cross on the Bitcoin chart — a well-known pattern of technical analysis in which the slow-moving average crosses the fast one from the bottom up. According to many analysts, this pattern is a strong signal for market growth.
However, some of his colleagues do not agree with the Golden Cross approach. Also, his interpretation by Crypto Rover is disputed:
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