Ethereum (ETH) price has experienced a sharp drop as stability doubts immerge as Ethereum blockchain proof-of-stake (PoS) merge approaches.
At the time of writing, ETH was trading at $1,853.44, down 5.78% after falling from a daily high of $1,976.57.
The Ethereum Beacon chain that was to introduce PoS into the blockchain went through a 7-block deep reorganization in the past 24 hours.
Block reordering occurs when there is an inconsistency in block ordering which mainly occurs as a result of malicious activities or a bug.
The block reorganization in the Ethereum was a result of a bug that showed that the Ethereum shift to PoS might not be stable as advocated by Vitalik Buterin, the Ethereum co-founder.
Doubts about the stability of Ethereum
Although the recent reorganization was limited, the Ethereum developers are still trying to establish the cause, so far they have confirmed that the blockchain was not attacked.
Gnosis founder, Martin Koppelmann, noted that Buterin might have been too optimistic that the reorganization stability will improve if Ethereum will shift to PoS.
Koppelmann said:
“We haven’t seen 7 block reorganizations on the Ethereum mainnet in years. ”
However, he complimented the Ethereum community for acting so fast on finding the cause and the solution to this issue.
Also, the change of blockchain outlet is expected to take place this year in order to increase the accessibility of blockchain. Buterin expects the change to take place by August 2022.
The future of Ethereum markets
With the expiry of some option contracts happening this week, the Ethereum futures market seems to be on shaky ground.
In the past 12 hours, the token has seen a significant amount of liquidations, around $118 million, which is double Bitcoin. Almost 97% of them were long positions, showing that traders were ready for the recovery of Ethereum.
However, the expected recovery has not yet happened since ETH has been lagging in the crypto market. Its losses were sparked after the Federal Reserve meeting that showed that some Central bank officials suggested further interest rate hikes this year
