- Ethereum and Shiba Inu are on the path to rebound after the US CPI data announcement.
- As the Merge draws closer, the Ethereum community is engaged in a debate on whether ETH is ‘security’.
- Ethereum and Shiba Inu are at risk of further decline in the bear market scenario.
The debate on whether Ethereum is security broke out on crypto Twitter yet again, weeks ahead of the Merge—Ethereum’s transition from proof of work (PoW) to proof of stake (PoS). Nick Payton, a Bitcoiner on Twitter, argued that Ethereum users voted to change the properties of the asset, and the transition to proof of stake is evidence that the altcoin is ‘security’.
Vitalik Buterin, the founder of Ethereum, slammed critics and argued that proof-of-work proponents’ argument that voting on protocol parameters makes ETH security is false. Nodes reject invalid blocks in both PoW and PoS. The debate on whether Ethereum is a security is therefore raging on crypto Twitter alongside ETH’s recovery from the slump it witnessed after US CPI data was released.
Based on data from CryptoCompare’s Asset Report released recently, Total Value Locked (TVL) in the Ethereum Network declined over 35% in June 2022, indicating a loss of interest in the altcoin.
Shiba Inu price began its recovery as the launch of stablecoin SHI and reward token TREAT approaches. The meme coin has wiped out its losses from the past two weeks. Shytoshi Kusama’s announcement about development updates in the Shiba Inu ecosystem will soon be followed by another one with launch dates.
Shiba Inu’s ecosystem is expanding, in a manner similar to Ethereum. Ethereum’s layer-2 scaling solutions reduce the transaction cost and increase the efficiency of transactions, likewise, the launch of Shibarium, Shiba Inu’s layer two.
Ethereum price is faced with the possibility of further decline. A triple top was formed at $1,243, and without a daily close above that level, the bearish thesis is validated. If Ethereum’s price fails to cross $1,243, it is likely a bull trap.
Shiba Inu’s price is ready for a trend reversal and a drop to $0.00000953. The recent recovery in the meme coin coincides with the spike in social dominance and positive sentiment among SHIB holders. However, the rally is short-term. Once Shiba Inu’s price begins its downtrend, the bearish targets are $0.00000953 and $0.00000827.
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