After A Glitch In The Merge Upgrade Test Ethereum Liquidations Have Topped $157 Million

Ethereum has lost more than 16 percent of its value in the last seven days, falling from $2,077 on Monday to $1,731 in the early hours of Friday. However, it has subsequently regained some of its losses and is now trading at roughly $1,770, down 3.5 percent on the day.

The Beacon Chain, a kind of ghost version of Ethereum that runs alongside the main Ethereum, had a block reorganization event. This means that the Beacon Chain was forked for a brief period of time, and blocks of transactions were processed on yet another parallel version of the Beacon Chain.

According to statistics gathered from coinglass, this dramatic price shift resulted in almost $157.26 million in Ethereum liquidations. Long positions from optimistic crypto traders accounted for more than 75% of these liquidations. The catalyst for the asset’s recent price movement is complex.

Ethereum plunged over 7% on Friday morning following the Beacon Chain’s block rearrangement event, owing to fears about its proposed merger. Bears are circling crypto and traditional markets, and Ethereum has borne the brunt of its attacks. As per CoinMarketCap, Ethereum is now exchanging at $1,770, down 3.4 percent as of now. The bearish trend is the latest in what has been a very bleak week for the cryptocurrency’s second-largest market capitalization.

$157.26 Million In Ethereum Liquidations

Ethereum has lost more than 16 percent of its value in the last seven days, falling from $2,077 on Monday to $1,731 in the early hours of Friday. However, it has subsequently regained some of its losses and is now trading at roughly $1,770, down 3.5 percent on the day.

According to statistics gathered from coinglass, this dramatic price shift resulted in almost $157.26 million in Ethereum liquidations. Long positions from optimistic crypto traders accounted for more than 75% of these liquidations. The catalyst for the asset’s recent price movement is complex.

Perhaps most significant was a recent snafu around Ethereum’s upcoming merging event, which is set to take place in August. The current proof-of-work (PoW) version of Ethereum will merge with its proof-of-stake (PoS) counterpart in this merge. The Beacon Chain is the technical name for this counterpart, which has been operational since December 2020.

Blocks Of Transactions

Once completed, the PoW-based version of Ethereum will be decommissioned, effectively transforming Ethereum into a PoS blockchain network with a slew of new benefits. However, on Wednesday, the Beacon Chain, a kind of ghost version of Ethereum that runs alongside the main Ethereum, had a block reorganization event. This means that the Beacon Chain was forked for a brief period of time, and blocks of transactions were processed on yet another parallel version of the Beacon Chain.

According to block explorer BeaconScan, the network has been creating blocks continuously since then. According to Preston Van Loon, a Core Ethereum engineer, a post-mortem will be released soon.

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