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Where is optimism OP after Ethereum Merge?

Where is optimism OP after Ethereum Merge?

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  • A sign of optimism has risen alongside L2 Ethereum solutions before Merge.

  • Optimism showed strong fundamentals in July and August.

  • OP may drop another 22 percent.

Optimism OP/USD is a Layer-2 scaling to the Ethereum network. Its mission is to facilitate cheaper and faster transactions on Ethereum. After the Ethereum consolidation, all eyes turned to alternatives and price reaction scaling layers. Since the merger has taken place, it is crucial to assess how Optimism has responded.

Optimism was the talk of the town in July and early August as prices rose. While the gains were largely driven by speculation, a couple of fundamentals helped. One includes the liquidity mining program that Optimism launched on Aave in early August. The development increased Aaven’s deposits to Optimism by a remarkable 493%.

Ethereum Merge also added momentum to the optimism. The merger is expected to increase the role of scaling solutions through a “Rollup-Centric Roadmap”. With the roadmap, Ethereum can become a data availability and settlement layer. It leaves the scaling role to Layer-2 Protocols.

OP threatens to drop another 22% when the price drops after the Merger

The technical factors are not convincing for the Optimism token. On the daily chart, the price drop hits the MACD crossing into the bear zone. Thanks to this, the price fell below the moving average.

Source – TradingView

Assuming an extended correction, OP will fall back to the late August lows of $0.98. That means a drop of about 22 percent. The bearish forecast is invalidated if the price recovers above the 20-MA. It should be confirmed by a clear reversal and better sentiment.

Decision thoughts

Optimism may continue to decline despite the expected benefits of the Unification. It suggests that the brand already benefited from post-Unification expectations. $0.98 is the next low for the OP.

https://coinjournal.net/news/where-is-optimism-op-after-ethereum-merge/


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