Ether Tops $1.9K as Ethereum Runs Final 'Merge' Rehearsal

Merge optimism has prompted an ether rally of 60% in four weeks.

AccessTimeIconAug 11, 2022 at 6:59 a.m. UTC
Updated May 11, 2023 at 4:45 p.m. UTC

Ether (ETH) rose to a two-month high early Thursday, outperforming bitcoin (BTC), after the Ethereum network ran the final dress rehearsal of its upgrade.

The native token of the Ethereum blockchain rose to $1,919, the highest point since June 1, extending Monday's rise of nearly 9%, CoinDesk data shows. The ether-bitcoin exchange rate or the ETH/BTC ratio rose to 0.078, a level last seen on Jan. 7, extending the recent bullish breakout.

The move happened after Goerli – one of the largest and most active Ethereum test networks – switched to the proof-of-stake consensus from the proof-of-work consensus at 01:45 UTC.

Goerli's successful transition follows similar moves by two testnets – Ropsten and Sepolia – in the months prior. The transition has brought the Ethereum mainnet one step closer to the supposedly-bullish upgrade dubbed "Merge", which Ethereum developers estimate will happen on Sept. 19.

Analysts expect the Merge, which will combine Ethereum's current proof-of-work chain with the proof-of-stake Beacon Chain, to cause a notable reduction in ether's supply, bringing a bitcoin-like store of value appeal to ether.

Last month, developers hinted at Sept. 19 as the tentative date for the merge. Since then, ether has rallied 60% while bitcoin has gained 20%. The broader market capitalization has increased by 28% to $1.2 trillion.

Perhaps the Merge has filled the bullish narrative void, relieving the market battered by the U.S. Federal Reserve's aggressive interest rate hikes.

Traders have been piling into call options, or bullish bets, tied to ether. Some have been buying the cryptocurrency in the spot market and simultaneously selling futures contracts, creating so-called backwardation – a situation where futures trade at a discount to the spot price. The strategy would help traders safely pocket free coins from a potential post-merge chain split without having to worry about losses from ether price volatility.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.