The Ethereum blockchain is undergoing a significant upgrade from proof-of-work to proof-of-stake. This transition is Ethereum's "Merge" and will make Ethereum much greener. The blockchain's energy consumption will reduce by a staggering 99.95%. In effect, the blockchain may become faster and cheaper. This evolution means the Merge lays the platform for potential scalability.
It is likely to take place on September 15 and positive relative strength suggests that traders are positioning in preparation
The chart shows the weekly relative strength (RS) between ETHUSD (numerator) and BTCUSD (denominator).
Ethereum is outperforming bitcoin:
- The RS chart's EMAs crossed bullishly into the week beginning July 18.
- Moreover, the RS's momentum is firmly in favour of ETHUSD, with the stochastic positioned in its upper quintile (red arrow).
- The longer the oscillator maintains this position, the greater the likelihood that Ethereum will continue its outperformance of Bitcoin.