The Ethereum/Bitcoin ratio hits its highest level since 2022 in the momentum of the merger.

TradingView data shows the ETH:BTC ratio jumped to a 2022 high early Tuesday, breaking above 0.084 for the first time since December 2021. The ETH:BTC ratio jumped around 58% from the approximate value of 0.053 at mid-July. The “ratio” refers to the cost of 1 BTC in terms of ETH. With a ratio of 0.084, 1 BTC is worth approximately 12 ETH.

Ethereum rallies against Bitcoin

A few days before the “merger”, Ethereum is strengthening against Bitcoin.

ETH/BTC year-to-date (Source: TradingView)

Ethereum enthusiasts have discussed the ratio at length in the past, in tandem with “the flipping“.-a hypothetical event that would see Ethereum overtake or “pinball” the market capitalization of Bitcoin. The ETH:BTC ratio exceeded 0.1 in June 2017 and January 2018, but for the reversal to occur it would need to reach around 0.159 based on the current circulating supply of both assets (the ratio also changes as the supply of ETH and BTC coins adjusts over time).

Ethereum’s current lead over Bitcoin can be explained by the growing hype surrounding the Merge, the long-awaited update to the number two blockchain Proof-of-Stake. The Merge is scheduled to occur between September 13-15, with the first part of the event taking place today. Dubbed Bellatrix, the first stage of the upgrade will see Ethereum update its consensus layer ahead of the merger itself. The second phase, called Paris, will end when the terminal total difficulty threshold reaches 5,875,000,000,000,000, marking the difficulty required to mine the final block in Proof-of-Work mode. After that, all new Ethereum blocks will be added to the chain by validators staking ETH.

The market is waiting for the merger

After suffering several years of delay, the merger is widely expected to be the biggest crypto event of 2022. It is expected to bring several major changes to Ethereum, including a 99.99% reduction in power consumption and a reduction in 90% of ETH issuance. It is partly for this reason that ETH has rallied in recent weeks. Such has been the interest in the update that many Ethereum-related tokens, including Ethereum Classic’s ETC and Lido’s LDO, have been rising alongside ETH in recent weeks. Ethereum Classic benefited from miners moving to the network before they became obsolete on Ethereum; its hash rate hit an all-time high on Monday. A group of proof-of-work advocates also plan to fork over to Ethereum to create a new network that would maintain a center for miners. Known as EthereumPOW, this initiative is expected to follow the merger and could potentially lead to an airdrop of tokens on the new chain for ETH holders. Several major exchanges, including FTX and Binance, have confirmed their intention to support airdrop in addition to the merger.

According to data from CoinGecko, ETH was trading at $1,664 today, up around 6.2% in the last 24 hours.

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