Crypto Industry News:
In an online interview, a security expert requesting anonymity explained that, unlike Proof-of-Work (PoW) based systems, systems based on Proof-of-Stake (PoS) inform the node validators in advance which blocks they will check, thus enabling them to plan attacks.
The cybersecurity expert quoted by the portal is a blockchain developer working on a second layer PoS blockchain.
The researcher explained that an exploit could theoretically be more easily exploited in the post-merge chain on the Ethereum network (any unethical or illegal attack that exploits vulnerabilities in an application, network or hardware. Typically an attack is carried out using software or code trying to take control of the system or steal data stored in the network):
"If you control two consecutive blocks, you can run an exploit on block N and end it on block N + 1. (...). From an economic security point of view [this vulnerability] makes these attacks relatively easier to carry out." - he said.
The expert said that while miners could also check two more blocks on PoW networks, it comes down to "pure luck" and does not give them time to plan an attack. However, he reassured ETH investors by saying:
"PoS [still] has sufficient practical security [and] it doesn't really matter that in theory it is not as secure as PoW. It's still a very secure system," he added.
In addition, "PoS security will [continue] to increase", as Ethereum developers are working on solutions that will mitigate the above-mentioned threat.
The Merge on the Ethereum network is set to take place on September 15 at 2:30 UTC time (according to Blocknative's Ethereum Merge Countdown). The switch to PoS is expected to make the Ethereum network much less energy-intensive.
Technical Market Outlook:
The ETH/USD pair had reversed from the level of $1,785 aggressively and drop towards the level of $1,552. In this situation, the levels of $1,689 and $1,722 will now act as the technical resistance for bulls. The next target for bears is seen at the level of $1,513 and $1,473. Please notice, the momentum is very weak and negative and the market conditions are now extremely oversold, so an intraday bounce is expected.
Weekly Pivot Points:
WR3 - $1,875
WR2 - $1,807
WR1 - $1,765
Weekly Pivot - $1,738
WS1 - $1,697
WS2 - $1,670
WS3 - $1,601
Trading Outlook:
The Ethereum market has been seen making lower highs and lower low since the swing high was made in the middle of the August at the level of $2,029. If the down move will extend, then the next target for bears is located at the level of $1,358. The key technical support for bulls is seen at $1,281.9